Business, Management and Accounting
5 years ago

New approach revolutionizes project costing with improved hourly cost rates.

Journal of Modern Project Management
Calculating hourly cost rates in project-based industries – part 2; cost management
Jan Emblemsvåg, Gary Cokins

Paper Summary

Hourly cost rates are important in project costing because labor costs make up a big part of projects. This paper introduces a new way to calculate hourly cost rates using Activity-Based Costing and the CAM-I Capacity Model. The goal is to help project-based industries improve their cost management. An example and a case study are included to show how this approach works in practice.

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