Task Cost is the total amount of financial, non-financial and human resources that have to be paid off or given up in order to perform a certain task. It is the price a performer needs to pay for the work to be done around the task to get this task completed.
When calculating cost of a task the following types of resources should be considered and estimated:
- Financial: money, funds, securities, and loan facilities available for spending on task performance.
- Non-financial: land, buildings, vehicles and equipment that are allowed for use in doing the task.
- Human: people responsible for task performance and results.
In terms of project management, task cost serves as the basis for estimating and calculating a portion of project cost. If to be simple, the total amount of cost of all tasks involved in a certain project determines the so called "task-based cost" of that project. The task-based cost does not include expenses related to planning, investing, reporting, communicating, analysis, and other activities required for project development and implementation.