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Let's take another look at
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an activity breakdown and how it produces
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the deliverable cost.
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The deliverable cost is simply the sum of
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the people rates, often about twice salary
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to include all the overhead and indirect costs,
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plus any direct material and services costs.
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The personnel costs are shown at the bottom left.
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The material and services costs are shown
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near the bottom right.
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And the total deliverable cost is shown
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at the top right.
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This is another example of why obtaining
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an activity breakdown from the deliverable leads
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is so useful since it provides you with
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the resources, material, services, time,
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and costs as well.
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You can download a copy of this spreadsheet
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in the Downloads section.
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