Actual /Outcome Cost

February 20, 2017

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When we plan to work on a project, we often calculate our costs of the projects before proceeding further with it. On the basis of these costs, we can take a decision of how the project will be profitable to us. Being a traditional way of analyzing the worth of a project, this method is still used in creating software.

There are two types of cost involved while creating software. These are as follows:

1. Actual Outcome
2. Expected Outcome

The Actual Outcome cost is a cost we derive after testing the software. This type of cost is acknowledged in the later stages of the software testing process. This type of cost is accounted regularly and documented during the phase of a test case.

While testing a case, this actual outcome is always documented along a test case during the phase of execution. Post this stage, the actual cost is compared with the expected cost and difference are calculated. Such a variation when encountered is known as defect.

The process of testing can be judged on the basis of this process. Whether this process results to be a success or turns out to be a failure, it will be actually decided on the basis of such test cases. The test cases developed in this stage, have following fields such as:

STAGES OF DEVELOPMENT

1. Testing the case
2. Process testing
3. Limitations of the testing
4. Expected end result
5. Actual Result

The testers are always aware of the fact that an expected outcome always varies from the outcome result. The scenario or the complete case once laid sets the complete stage of process that is defined by a group of testers.

The difference found in the results helps in determining the gaps in a project. In such a case, the time vested on calculating an actual cost is found to be an important way of dealing with the long process of testing software. Although it is not an easy process but seeing the complete scenario, the testers know the importance of getting the outcome cost decided in advance.

It will help in long run to determine the worth of a project in terms of cost, time and money.

PROCESS OF ACTUAL COST

1. While the tester executes a test case in order to identify the actual cost. The result of processing also takes place. A part of log test is created.
2. Secondly, the tester is expected to execute the entire process of undertaking a plan.
3. Thirdly, the work on the project begins.
4. The tester is assigned a responsibility to begin with testing as soon as software ends.
5. Post the testing ends, the actual cost is compared with the expected cost or results.
6. Only in this stage, software gaps are identified.
7. The gaps can be filled only after the tester clearly understands the discrepancies of the software.

Hence, the actual or outcome cost plays an important role in success of a project. No project can be initiated without defects and these defect or bugs are the result of difference between what the project is expected to turn out and what is actually came out to be. The actual cost is calculated by taking help various ERP Cost Tracking software.

FUNCTIONS OF ERP COST TRACKING SOFTWARE:

1. Tracks actual cost by accounting material costs, raw material produced, and delivering final products.
2. Defines costing points.
3. Cost of producing final product by holding on to actual costs.