"Roll up costs" is a financial term used to describe the process of aggregating or combining various individual costs or expenses into a single, overall cost. It refers to the summation or consolidation of multiple cost elements to get a comprehensive view of total expenses incurred by a company or project.
In business or project management contexts, roll up costs involve identifying and adding up all the direct and indirect costs associated with a particular activity, task, or overall project. Direct costs usually include tangible expenses that can be directly attributed to the production or completion of the specific item or activity, such as materials, labor, or equipment. Indirect costs, on the other hand, are more general and relate to shared expenses that benefit the overall organization or project, such as utilities, administration, or overhead.
Rolling up costs is typically done to have a clearer understanding of the financial impact and overall expenditure of a project or activity. By consolidating individual costs into one total amount, it allows for better cost management, budgeting, and decision-making. It also enables companies or project managers to assess the feasibility, profitability, and efficiency of their endeavors.
Overall, the term "roll up costs" refers to the act of combining and summarizing various costs to obtain a comprehensive view of total expenses incurred in order to effectively manage and evaluate financial aspects of a project, venture, or organization.
