Resources are divided into two main categories:
Direct costs that are applied to only one specific WBS element
Indirect costs that can be applied to more than one resource on a pro rata basis
In MPM, you use the Resources application to specify the direct costs. You provide descriptive information about a resource, then assign rates to the resource over the life of the project. You can use the Escalate Rate function in MPM to automatically calculate escalated rates.
You assign resources to estimates to calculate the cost of a project. If you make a change to the resource definition, the change ripples through all estimates where the resource has been assigned.
Resources are one of four components that define the pricing structure (estimating/ budgeting) of your company. The four components:
Elements of cost (EOC) and classes of cost (COC)
Resource codes, descriptions, and rates