Week 10

TYPES OF COSTS EXERCISE

Instructions: This exercise will provide you the opportunity to provide an analysis of types of costs within the Week 2 Business Case project you selected. Again, copy and paste your Business Case below.

Next, you will fill in each of the sections in the table below. For each cell provide a 1) brief definition of the type of cost, 2) identify a specific resource cost within your project that fits this type of cost and then 3) explain why this cost fits the definition.

Business Case:

Week 2 Business Case

News source (APA reference): McConnon, A. (2020) Detroit’s Revival is Anchored in its Train Station. The New York Times.

Web address: https://www.nytimes.com/2020/01/21/business/detroit-ford-train-station.html

City: Detroit.

Ford Motor Company recently initiated a renovation project to bring back the life to the now-crumbing Central Michigan Station. The company intends to renovate the station and transform it into a 1.2 million-square-foot innovation hub. The project will be completed at Detroit's Central Michigan station that has deteriorated and lost its iconic beauty in recent years. The station was for a long time the symbol of Detroit’s vibrancy. The company acquired the station in 2018 and started the project which is scheduled for completion in 2023. The project is meant to attract investments in the City of Detroit since the city declared bankruptcy in 2013.

Fixed: 1. 2. 3.	Variable: 1. 2. 3.
Direct: 1. 2. 3.	Indirect: 1. 2. 3.
Recurring: 1. 2. 3.	Nonrecurring: 1. 2. 3.
Regular: 1. 2. 3.	Expedited: 1. 2. 3.
Internal: 1. 2. 3.	External: 1. 2. 3.
Lease: 1. 2. 3.	Purchase: 1. 2. 3.
Labor: 1. 2. 3.	Material: 1. 2. 3.
Estimate: 1. 2. 3.	Reserve: 1. 2. 3.