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متابعة

How do you use the activity cost for decision making?

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تم إضافة السؤال من قبل Nadjib RABAHI , Freelancer , My own account
تاريخ النشر: 2016/05/03
Rami Assaf
من قبل Rami Assaf , loading and Storage Operations Supervisor , Arab Potash Company

Thanks for invitation

 

I amagreeing with my colleague’s answer Mr fuzlar

Md Fazlur Rahman
من قبل Md Fazlur Rahman , Procurement Specialist , Engineering and Planning Consultants Ltd

In the context of project management, I would like to recommend as follows:

1.     Several activities together will support to achieve a project objective and several project objectives will contribute to achieve the project goal. So, when the with activity cost are summed up for each period, it gives us the total activity cost of particular periods. Also add to this, the financing cost of each period

2.     Now, estimate the revenue for each period.

3.     Finally, check the NPV and IRR

Decision:

If NPV is reasonably positive or IRR is higher than market rate of interest, you may go ahead to take the project

 

 

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