Slide 1 Software cost estimation l Predicting the resources required for a software development process

Slide 2 Software cost components l Hardware and software costs l Travel and training costs l Effort costs (the dominant factor in most projects) salaries of engineers involved in the project Social and insurance costs l Effort costs must take overheads into account costs of building, heating, lighting costs of networking and communications costs of shared facilities (e.g library, staff restaurant, etc.)

Slide 3 Costing and pricing l Estimates are made to discover the cost, to the developer, of producing a software system l There is not a simple relationship between the development cost and the price charged to the customer l Broader organisational, economic, political and business considerations influence the price charged