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Service costs in a budget

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1. Service costs are all the costs of the project other than labor and materials. These are costs that cannot be assigned as costs directly to activity within the project.

2. For capital items, depreciation is a way of allocating part of the cost of the item to a particular project. Depreciation is used in projects to allocate a reasonable part of the cost of the item to the project.

File Courtesy: 
http://www.knowledgebank.irri.org/economics/index.php
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