Haw you estimated project costs ?

break down the project into activities

 estimate activityies   time, human resources, and material

performance

First:break down the project into activities.

Second:each activity estimate their time, human resources, and material.

This estimates can be by some method, three point, Perl, or same project, I prefer Perl.

Finally: sum the cost of all activities and add on it the ratio of the over head of the organization, and the ratio of the plan b (risk plan b not plan a), and the ratio of the profit.

Then you have the cost, and the budget of each activity and the total of the project.

project breakdown to activities and tasks, then starting from the bottom, and estimating all resources needed for each task, which will get you to the project cost

BY USING SAP technology it will helps us in doing dat

• Step1 - Break the Project Down into a Set of Definable Tasks
• Iterative, Top Down Process:      

1. Identify Major Activities (Design, Development, Integration, etc)
2. Break Down Further into "Self Contained" tasks (Design User Interface, Develop Database Software)
3. Take it Down One or More Steps Depending on Size and Complexity (Layout All Display Formats, Determine Operator Action/Entry Sequences, Define Limit Tests, etc)

• Too Little Breakdown is Bad, Too Much is Bad - it takes a Balance
• Tools - Logic, Analysis, Experience  

The Process - Estimating Each Task

• Determine What it Takes to Address Each Task
• Usually Focused on Labor
• What Type (Programmer, Engineer, Network Administrator, Writer/Illustrator)
• Experience Mix: May Look Like Mini Project Teams (Some Guidance from a Senior Type +2 Juniors doing details and a Writer)

• Estimate How Long the Task Should Take
• Very Subjective: 

1. Historical Performance Metrics and/or or Personal Experience Helps
2. Capabilities/Limitations of Candidate Project Team Members Must be Considered

• Cover the Gaps (the Team is usually Fixed and Finite): Plan for Continuous Tasking for each member Until No Longer needed

The Process - Preparing The Schedule

• Schedule the Tasks
• Assess Start Point for Each (Possibly Relative to Progress of Others)
• Assumes Some Sequence/Dependency Analysis Has Been Conducted
• Insert Milestones
• Key Review/Delivery/Test Points
• Evaluate the Result
• Staff Profile (is it Reasonable)
• Make Necessary Adjustments (Schedule, Resource Mix, etc.)

Project Cost depends on2 things time and performance.