Join Bob McGannon for an in-depth discussion in this video Examining capital and operating costs, part of Project Management Foundations: Budgets.
…Imagine playing chess, when you don't know the rules and your opponent is…taking different shaped pieces and moving them…every which way across the chess board.…It can get awfully confusing, frustrating and might make you believe…someone is making up the rules as you proceed through the game.…Working out different categories of project costs can seem like playing that…frustrating game of chess, if you don't know a few of the rules.…Two concepts that form the basis of relevant…accounting rules are capital costs And operating costs.…
Capital costs and operating costs are often…referred to as capital expenses or Capex.…And operational expenses, or Opex.…Capex is money that is allocated for buying…things to create future benefit in an organization.…Examples, are spending for assets like buildings.…Machinery, equipment, software, or upgrading existing facilities.…Things that the company owns and keeps.…On the other hand, Opex, are expenses needed for the…day-to-day running of the business, such as wages, costs for utilities.…
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- Discovering costing standards
- Examining capital and operating costs
- Assigning costs to resources
- Communicating your budget
- Recovering a bloated budget
- Addressing budgeting issues<br><br>
- The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.