What are four major categories of costs? Provide descriptions for each category. What will be an ...

Some of the more common project costs include labor, materials, subcontractors, equipment and facilities, and travel. Labor costs are those associated with hiring and paying the various personnel involved in developing the project. Material costs apply to the specific equipment and supplies the project team will require in order to complete the project tasks. Subcontractors may provide resources (and in the case of consultants, expertise) for the project, their costs must be factored into the preliminary cost estimate and be reflected in the budget. Firms commonly include rental of equipment and facilities as a charge against the cost of the project when the project is developed away from the firm's home office. If necessary, expenses that are related to business travel can be applied to the project as an up-front charge.