Opportunity, direct and indirect costs Assignment

Opportunity, direct and indirect costs - Assignment Example Suppose I decided to watch the Brazil – Argentina match at the expense of watching England-Germany match. Using modern technologies, I can definitely record the England-Germany at the time of watching the Brazil – Argentina match. In this case, I am reducing the opportunity cost of losing the live telecast of England-Germany match. However, it is quite possible that the England-Germany match was more interesting and the Brazil – Argentina match was quite boring. In this case, the indirect costs (foregone opportunities) are greater than the direct (out-of-pocket) costs. Suppose I am going for a tour in a rented car. Imagine the rent for the car per day is $1000. If I go alone, I have to pay the whole amount myself. On the other hand, if I go along with three other colleagues, I have to pay only 250 dollars per day. In the first case, the marginal cost was $ 1000 whereas in the second case it was only $250. In short, the marginal cost of renting a car will be reduc ed considerably if the number of passengers increases. It should be noted that if I rent the car alone, $ 750 will be wasted as sunk cost. I am reducing the opportunity cost of losing the live telecast of England-Germany match. However, it is quite possible that the England-Germany match was more interesting and the Brazil – Argentina match was quite boring. In this case, the indirect costs (foregone opportunities) are greater than the direct (out-of-pocket) costs. Opportunity cost of an activity is usually calculated based on the next best alternative of that activity.

Project Initiation Document (PID), Project Management, Heritage 59 Essay

Project Initiation Document (PID), Project Management, Heritage 59 Residence in Thailand - Essay Example Financial viability is always an important variable for commercial projects of this nature (Knight 2006) and already, financial feasibility has showed a net profit of THB 380 million over 36 months. The scope of the project clearly defines the boundaries of the project as in what will be involved in the project and what will not be involved in it. The Heritage 59 Residence project will comprise of a two building edifice that is located Sukhumvit Road. The first building will be a maintained 12-storey building at the front side of the site. The second building will be a reconstruction of the existing 3 story-building into a 27-storey at the back side of the site. The proposed financial scope given to the project is THB 85,000 per Sqm with the total land size of project being 806 sq.m to be completed in 36 calendar months. The scope described is graphically represented below Achievable It is important not to set an objective that will be excessively difficult to achieve. The project objective has therefore been defined to be moderate and made up fulfilling all legal provisions that were given in the course of seeking permit for the site plan. Relevant At the end of the project, there should be specific benefits that can be pointed to as the outcome of the project and this is to make a commercial gain of THB 380 million out of the project. Of the tasks, the procedure of construction team and materials will be the most highlighted. Generally, a bid will be opened for interested suppliers to tender. An executive from the Tender Board will be consulted to oversee this process. The project manager will then put in the procedures for procurement to begin by following the steps laid down by the National Procurement Board. The procurement, which is to centre stage will be undertaken through