ABSTRACT
Consideration of project costs is one of the three elements in the familiar triangle of objectives. All project managers need to keep abreast of expenditure compared with estimates and budgets. That means establishing good and regular communication with the department responsible for collecting and reporting project costs, which called the finance department or the accounts department. Direct costs are generally those costs that can be identified and recorded as being directly associated with labour or materials that can be attributed fairly, accurately and honestly to a sold product or project. Indirect costs include all the costs of running and managing the company and its fixed facilities and premises, plus the wages and salaries of people who do no work that can be charged directly to jobs or customers. Supervision of timesheet entries is highly desirable, and where a client is being invoiced on a cost plus basis for time actually spent on their project, supervision and audit are essential.
