Dec 272011

If you have thought of starting your own software development firm or director of PMO calculating costs for your programs, you must consider all kind of costs that may occur for performing benefit analysis of your program.

  1. Human resource cost for project staff and supporting staff (Finance, HR, Process, Quality Control/Assurance, Admin, Travel, Legal etc.)
    1. Salary, perks and retirement
    2. Recruitment expenses
    3. Training expenses
    4. Sub-Contractors Cost
    5. Staff Welfare – canteen, events etc.
    6. External Consultants
      1. Fees to outside agencies
      2. Lawyer/documentation fees
    7. Entertainment
  2. Product & Equipment Expenses
    1. Software
    2. Facility furniture
  3. Communication – Data Circuit
  4. Communication – Others
    1. Telephone expenses (office, mobile)
    2. Data cards
    3. Postage and telegram
  5. Depreciation of building and equipment
  6. Domestic travel
    1. Transportation cost (air fare, bus fare, train fare, taxi, rental car, insurance etc.)
    2. Hotel cost
    3. Food cost
  7. Electricity
  8. Facility Running Expenses – Others
    1. Cleaning
    2. Decoration
    3. Security
    4. Garbage disposal / recycling
    5. Printing and Stationary
  9. Marketing
    1. Advertising
    2. Event sponsorship
  10. Overseas Travel
    1. Airfare expenses
    2. Visa expenses
    3. Passport expenses
  11. Project Expenses
  12. Rent
    1. Office
    2. Staff accommodation
  13. Repairs & Maintenance
    1. Repair & maintenance of facility
    2. Repair & maintenance of machinery
    3. Repair & maintenance of software
  14. Research and development
  15. Others
    1. Bank charges
    2. Brokerage and commissions
    3. Insurance
    4. Periodicals and journals
    5. Consumable
    6. Exchange rate fluctuation
    7. Bank interest

Amounts of above cost factors will vary according to an organization and its accounting practices. However, we must consider or explicitly rule out the above costs for benefit realization estimates.

Do you agree or would you like to add any other cost?

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