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  • Exercise 6-PROJECT COST MANAGEMENT EXERCISE

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    Muhammad Zamir
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    This document discusses key concepts and processes in project cost management. It defines cost and the purpose of project cost management as determining estimated costs and benefits. The 4 processes of project cost management are planning, estimating, budgeting, and controlling costs. It also defines important cost management terms like profit margin, life cycle costing, direct costs, sunk costs, reserves, cost baselines, and describes software that can assist with cost management.

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    This document discusses key concepts and processes in project cost management. It defines cost and the purpose of project cost management as determining estimated costs and benefits. The 4 processes of project cost management are planning, estimating, budgeting, and controlling costs. It also defines important cost management terms like profit margin, life cycle costing, direct costs, sunk costs, reserves, cost baselines, and describes software that can assist with cost management.

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    10 views1 page

    Exercise 6-PROJECT COST MANAGEMENT EXERCISE

    Uploaded by

    Muhammad Zamir
    This document discusses key concepts and processes in project cost management. It defines cost and the purpose of project cost management as determining estimated costs and benefits. The 4 processes of project cost management are planning, estimating, budgeting, and controlling costs. It also defines important cost management terms like profit margin, life cycle costing, direct costs, sunk costs, reserves, cost baselines, and describes software that can assist with cost management.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    PROJECT COST MANAGEMENT

    1. What is cost?
    2. What is the purpose of project cost management?
    3. List the 4 processes of project cost management?
    4. Complete this table:

    Term Definition
    Revenues minus expenditures

    Profit margin
    Life cycle costing
    Determines the estimated annual costs and benefits for a project
    and the resulting annual cash flow

    5. Compare between the following:

    Tangible cost/benefits Tangible cost/benefits


    Definition
    Example of situation

    6. Complete this table:

    Term Definition
    Direct costs
    Costs that are not directly related to the products or services of the
    project, but are indirectly related to performing the project.
    Sunk cost

    7. What is ‘reserves’?
    8. Describe the 2 types of reserves.
    9. What the purpose of cost baseline?
    10. List the 3 tasks of project control.
    11. Describe 2 softwares that can be used to assist in cost management.

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