Normal Cost Notes: Definitions & Explanations PDF | Download eBooks
Study Normal Cost lecture notes PDF with project management definitions and explanation to study What is Normal Cost?. Study normal cost explanation with project management terms to review project management course for online MBA programs.
Normal Cost Definition:
Normal cost is the estimated cost to complete the activity in the normal time.
Successful Project Management by Jack Gido and James P. Clements
Normal Cost Notes:
When the activities are performed under normal time, the cost associated with the activities is called normal cost. Normal cost is the cost which is incurred when the actual allocated resources are used to perform the activities. Any change in the number of resources increases or decreases the associated cost. For example, if three painters are required to paint a room in 5 days and the activity is completed using the allocated resources within five days, then the cost associated with hiring the three painters to do the task is called normal cost. The normal cost of the overall project is the sum of normal costs of all the activities.
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