Purpose of Resource Costing
In this day, every Manager needs to know cost of operations of their department. This helps to answer questions like:
- Does the fund allocation justify the goals?
- Does the fund allocation match with the defined budget?
If not, where is the mismatch?
Measure Human Resource Costs Efficiency
There exists a need to ensure proper balance between HR costs and HR effectiveness. This means that HR efficiency needs to be monitored throughout.
Estimating Resource Durations
Estimating resource duration for particular project will give a clear picture on how many resource need to be allocated for a project within the allocated budget