Project Calculations

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1. The cost of all materials, equipments, labour and other resources required for developing the product/service.

With Project, we can estimate and track basic cost information for our project. We can use several different types of costs, and Project calculates those costs for us as the project progresses. Because cost can be an important aspect of project scheduling and control, Project provides for several different types of costs. With Project, you can enter and track the following types of costs:

1. Rate-based cost, a cost that is calculated based on the pay rate specified for a resource and the amount of work done

2. Per-use, a cost that is incurred each time a resource is used, or once for a particular task

3. Fixed, a cost that is set for a task and does not change regardless of task duration or the resource work performed

“PK-MAX” is a limited company based in east London

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Shop size is quite big actually these are 2 shops joint together after removing middle wall.

Shop has only one entrance which is automatic door. Main hall is divided into3 categories gent’s, lady’s and children’s. Opposite side of entrance is counter and customer service disk which has 2 pay points. Warehouse is separate at the lift side of the shop. The front of shop is glance walls decorated with advertise posters and flashing lights.

Gent’s section has 5 stands for display, lady’s section 7 stands and kids section has 3 stands for display clothes. Each stand has cost£67.50. There are 40 lights in main hall, 5 flashing lights at display and 2 lights in store or warehouse. Main hall and store light cost is £2.45. Flashing lights at display are £5.75 each.

So total cost for lights and stands is:

Furniture: £1800

Furnishing and decoration: £3100

Main hall lights: 40 X £2.45 = £98.00

Store lights: 2 X £2.45 = £4.90

Display flashing lights: 5 X £5.75 = £28.75

Total cost of lights: £131.65

Total cost of stands: 15 X £67.50 = £1012.50

Shop has 3 computers 2 for sales point each have value £600.99 and one for customer assistant which have value £400.35. The software running on these computers cost£2000.00.

If we calculate cost for comport and software is;

Computers for sales point: 2 X £600.99 = £1201.98

Computer for customer assistant: 1 X £400.35 = £400.35

Software cost: £2000.00

Total cost for computers and software: £3602.33

Company registration and documentation expenses: £1600

All stock in shop and store bought from Pakistan, China and India. Mostly products are finished instead of raw material.

Stock bought from Pakistan is assorted garments cost £35,000.00 from China £13,000.00 and from India £23,000.00

The total stock cost is:

Garments from Pakistan: £35,000.00

Garments from China: £13,000.00

Garments from India: £23,000.00

Total stock value: £71000.00

“PK-Max” has 4 employees working 7 days, our working hours are 10:00am to 6:00pm from Monday to Friday and Sunday is from 10:00am to 3:00pm.
The different cost types operate somewhat differently depending upon whether the resource is a work resource (person or piece of equipment). For work resources, the rate is applied per hour or some other unit of time.

Rate for customer assistants is £6.00ph and for manger£7.50ph. Each employee working 45 hours per week

Salary for 3 customer assistants: 3 X 45 X £6.00 = £810.00pw

Salary for manager: 45 X £7.50 = £337.50pw

Total salary: £1147.50pw = £4972.50pm

Other Expenses are electricity, telephone and internet, rent and overhead expenses, overhead expenses including pens, tissues, air fresher and other things use in toilet etc.
Server Costs: £100.00pm
Rent: £3000pm
Phone/internet Bill: £19.99pm estimated
Electricity: £110.00pm estimated
Overhead expenses: £100.00pm

Total expenses: £3244.00

Fixed assets

Furniture: £1800.00

Furnishing and decoration: £3100.00

Total cost of lights: £131.65

Total cost of stands: £1012.50

Total cost for computers and software: £3602.33

Company registration and documentation expenses: £1600.00

Server Costs: £100.00

Current assets

Total stock value: £71,000.00

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Cash in bank: £58653.52

Total assets: £141,000.00

Total capital and current liabilities: £141,000.00

Expenses

Rent: £3000.00pm
Salary: £1147.50 = £4972.50pm
Phone/internet Bill: £19.99pm estimated
Electricity: £110.00pm estimated

Overhead expenses: £100.00pm

Total expenses: £8202.49pm = £2050.62pw

Total cost of business: £141,000pa = £2711.53pw

Total: £4762.15

Task2: Identify the cost of training and staff required

As we mentioned above there are total 4 employees in “PK-MAX” so the cost for the required staff is in details is given below.

Rate for customer assistants is £6.00ph and for manger£7.50ph. Each employee working 45 hours per wee

Task3: Identify sources of all resources you have assumed

“PK-MAX” limited as we know is not a big company according to company size resources are also limited. As we know building is on rent which is used for the business and then furnishing is done by the company. All furnishing and equipment materials is purchased by cash. Company has capital£70,000 for initial investment. Goods from abroad are on credit which have to pay later the source of this credit are supplier.

As we mentioned before in details all expenses and salaries and overhead expenses so as business will run and business will receive sales returns then these expenses will be covered from revenue.