Direct project cost: - Direct costs are expenses that a company can easily connect to a specific cost object which may be a product, department or project. This includes items such as software equipment, labor and raw materials etc.

Indirect project cost: - Indirect costs include costs which are frequently referred to as overhead expense for example rent and utilities and general and administrative expenses such as officers salaries, accounting department cost and personnel department cost.

Normal time: - It is time taken by the project without any delay in any activity of the project. Normal time of the project does not contain crashing of any activities.

Normal cost: - Normal cost is the cost associated when the project is completed within the normal time

Crash cost: - Crash cost is the cost associated when the project is completed with crash time of the project.

Crash time: - Crash project time is the minimum time by which the project may be completed.

Cost slope: - Cost slope is defined as the ratio of difference between crash cost & normal cost to the difference between normal time & crash time

Optimum cost:- Optimum cost is defined as that cost which is lower as compared to that of the normal project cost at optimum lower project duration.

Optimum duration:- Optimum project duration is the time corresponding to minimum project cost for completion of the project.