Identify the Three Major Categories of Project Costs and Give

question 95

Essay

Identify the three major categories of project costs and give an example of each.

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Definitions:

Profit

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Variable Costs

Costs that vary directly with the level of production or output, including items such as raw materials and direct labor expenses.

Total Revenue

The total amount of money a company receives from its goods or services over a specific time period, calculated by multiplying price by quantity sold.

Yearly Return

The total gain or loss experienced on an investment over a period of one year.