STUDENT

ASSESSMENT
TASKS

BSBPMG533

MANAGE PROJECT COST

 Contents

Introduction 4
Assessment Task 1: Knowledge questions 5
Assessment Task 1: Checklist 7
Assessment Task 2: Project Portfolio 8
Assessment Task 2: Checklist 15
Final results record 19
 Introduction

The assessment tasks for BSBPMG533 Manage project cost are outlined in the assessment plan
below. These tasks have been designed to help you demonstrate the skills and knowledge that you
have learnt during your course.
Please ensure that you read the instructions provided with these tasks carefully. You should also
follow the advice provided in the Business Works Student User Guide. The Student User Guide
provides important information for you relating to completing assessment successfully.

Assessment for this unit

BSBPMG533 Manage project cost describes the skills and knowledge required to identify, analyse
and refine project costs to produce a budget, and to use this budget as the principal mechanism to
control project cost.
For you to be assessed as competent, you must successfully complete two assessment tasks:

 Assessment Task 1: Knowledge questions – You must answer all questions correctly.

 Assessment Task 2: Project – You must work through a range of activities and complete a
project portfolio.

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 Assessment Task 1: Knowledge questions

Information for students

Knowledge questions are designed to help you demonstrate the knowledge which you have
acquired during the learning phase of this unit. Ensure that you:

 review the advice to students regarding answering knowledge questions in the Business
Works Student User Guide

 comply with the due date for assessment which your assessor will provide

 adhere with your RTO’s submission guidelines

 answer all questions completely and correctly

 submit work which is original and, where necessary, properly referenced

 submit a completed cover sheet with your work

 avoid sharing your answers with other students.

i
Assessment information
Information about how you should complete this assessment can be found in Appendix
A of the Business Works Student User Guide. Refer to the appendix for information on:

 where this task should be completed

 the maximum time allowed for completing this assessment task

 whether or not this task is open-book.

Note: You must complete and submit an assessment cover sheet with your work. A
template is provided in Appendix C of the Student User Guide. However, if your RTO
has provided you with an assessment cover sheet, please ensure that you use that.

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Questions
Provide answers to all of the questions below:

1. Outline the main steps in the budgeting process for a project.  

2. Discuss why key performance indicators are used in budgeting and provide three examples of
financial key performance indicators that can be used to determine the effectiveness of a
budget.  

3. Explain the use of milestones in budgeting.  

4. Explain the importance of budgetary control.  

5. Explain the purpose of using spreadsheets for developing budgets and two key features of
using spreadsheets.  

6. Explain two methods for conducting project cost estimating and at least one advantage and
disadvantage of each.  

7. Explain earned value management and its application in evaluating costs.  

8. Explain project cost management and its application in evaluating costs.  

9. Explain how a cost plan can assist in managing costs and its use over the project life cycle.  

10. Explain the key procedures that should be followed in the event of a cost change process
during a project.  

11. Explain two processes that can be used to measure costs against project outcomes.  

12. Outline the key role and at least four responsibilities of a project manager in relation to cost
management.  

13. List three organisational policies and procedures that may apply to cost management in a
project environment.

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Assessment Task 1: Checklist

Student’s name:

Did the student provide a Completed

sufficient and clear answer successfully? Comments
that addresses the
suggested answer for the Yes No
following?

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7

Question 8

Question 9

Question 10

Question 11

Question 12

Question 13

Task outcome:  Satisfactory  Not satisfactory

Assessor signature:

Assessor name:

Date:

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 Assessment Task 2: Project Portfolio

Information for students

In this task, you are required to demonstrate your skills and knowledge by working through a
number of activities and completing and submitting a project portfolio.
You will need access to:

 a suitable place to complete activities that replicates a business environment including a

meeting space and computer and internet access

 your learning resources and other information for reference

 Project Portfolio template

 Budget Template

 Simulation Pack (if you need a case study).

Ensure that you:

 review the advice to students regarding responding to written tasks in the Business Works
Student User Guide

 comply with the due date for assessment which your assessor will provide

 adhere with your RTO’s submission guidelines

 answer all questions completely and correctly

 submit work which is original and, where necessary, properly referenced

 submit a completed cover sheet with your work

 avoid sharing your answers with other students.

i Assessment information

Information about how you should complete this assessment can be found in Appendix
A of the Business Works Student User Guide. Refer to the appendix for information on:

 where this task should be completed

 how your assessment should be submitted.

Note: You must complete and submit an assessment cover sheet with your work. A
template is provided in Appendix B of the Student User Guide. However, if your RTO
has provided you with an assessment cover sheet, please ensure that you use that.

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Activities
Complete the following activities:

1. Carefully read the following:

This project requires you to develop and manage a project’s costs. You must
manage the costs on two separate occasions across a project’s lifecycle,
including responding to variations, recording expenditure and creating financial
reports.
You can do this for a real project at your workplace, for a project associated with a
start-up business you are working on yourself or you can use the Simulation Pack
provided.

Vocational education and training is all about gaining and developing practical
skills that are industry relevant and that can help you to succeed in your chosen
career. For this reason, basing your project on real relationships with classmates
or work colleagues will mean that you are applying your knowledge and skills in a
relevant, practical and meaningful way!

If you use your own business or workplace, you should have sufficient financial
information to complete the requirements of the assessment (read through the
assessment to make sure you have access to the required information). Also
make sure that you have access to at least one cost-management related policy
and procedure, one budget and a Work Breakdown Structure (WBS) for the
project. Speak to your assessor to get approval if you want to base this on your
own business.
If you are basing this assessment on the case study business, read through the
Simulation Pack in preparation for this assessment. All the information needed to
complete this assessment is contained in the Simulation pack.
You will be collecting evidence for this unit in a Project Portfolio. The steps you
need to take are outlined below. Before you begin, complete page 4 of your
Project Portfolio. You must describe the organisation you are basing this
assessment on and provide a short description of the project for which you’ll
manage the cost.

i Start working on Section 1 Determine project cost of your Project Portfolio. Steps
2 to 5 form part of Section 1.
If you are basing this assessment on the case study (Manager Networks), further
information to complete the next steps is available in the Simulation Pack.

If you are basing this assessment on your own business, you will need sufficient
numerical information to estimate costs, develop a budget and create a Cost
Management Plan.

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2. Summarise important cost management information

Summarise any information that relates to:

 the financial objectives of the project

 your role in the project (including the responsibilities)

 organisation’s budget (or any other budget relevant to the project)

 cost management (e.g. monitoring actual expenditure against the budget,

financial completion of project, estimating techniques, budget tolerances etc.)

 the project task and its activities (including the Work Breakdown structure
(WBS)).

i Make sure you review at least one policy and procedure relating to cost
management. You must also review a budget.

3. Meet with your project team members to discuss and agree on the project cost management
details

Meet with at least two project team members. At the meeting:

 discuss the financial objectives of the project and agree on actions required to
maintain these objectives.

 identify the resources required for each task in the WBS.

 agree on the maximum project costs for required resources

 discuss processes and procedures for monitoring actual expenditure during

the project lifecycle against the budget (these must include details about the
ongoing recording of income and expenses as well as timely, accurate
financial reporting).

i Take notes at the meeting, as you will use the agreed outcomes of the meeting
throughout your assessment.
Each meeting should take 30 minutes. This will either be attended in person by
your assessor or they will attend online. If you are in the workplace, you may like to
video record the session for your assessor to watch later (attach proof to Section 1
of your portfolio). Your assessor can provide you with more details at this step.
Make sure you follow the instructions above and meet the timeframes allocated.
During the meeting, you will need to demonstrate effective communication skills
including:

 speaking clearly and concisely

 using an appropriate tone and the correct syntax

 asking questions to identify required information and understand the views of

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 others

 using active listening techniques to confirm understanding.

 selecting appropriate conventions and protocols (e.g. formal greeting,

handshake etc.).

4. Develop a budget

First estimate the costs associated with the required resources for each task/activity
in the WBS (identified at your team meeting). Then use your estimated costs to
develop a budget for the project.

i Use an appropriate estimation technique to estimate project costs (if you are using
the case study, the organisation’s policy and procedures stipulate that cost
estimates should be made using a bottom-up estimating technique).
Your budgeted amounts should not exceed the maximum resource costs agreed on
at your meeting.
Information should be obtained from a variety of sources:

 use the internet to research resource and activity costs.

 seek input from an external stakeholder (e.g. email a consultant for

information, request a quote from a supplier etc.)

 use existing information (e.g. previous budget) to obtain information on

resource and activity costs.
Use a digital technology application (e.g. MS Excel) to record your cost estimates
and develop your budget. You may use the MS Excel template provided (Budget
Template), or any other appropriate application used by your business. You will use
this same workbook later on in this assessment to monitor project costs (step 6).

5. Develop a Cost Management Plan

Use the information you’ve gathered and developed in this assessment so far to
develop a Cost Management Plan that includes:

 a brief introduction

 financial objectives of the project

 actions required to maintain financial objectives

 identify the resources required

 estimated and maximum project costs for required resources

 processes and procedures for monitoring actual expenditure against the

budget (these processes must include the recording of actual expenses)

 potential causes for increased costs

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  cost control procedures (variation rates and approval requirements).

i You may use the template provided in the Simulation Pack, or any other relevant
template.
Your plan should only include information that falls within the scope of your role and
responsibilities (you’ve already defined these in step 2).
The text of your plan should be in grammatically correct English, written in an
appropriate (polite, business-like) style.

Make sure you have answered all questions in Section 1.

You are required to attach certain documents as part of your evidence – review the
documents you need to attach as outlined in Section 1 of the Project Portfolio.
Submit Section 1 to your assessor.

i Start working on Section 2 Monitor project costs of your Project Portfolio. Steps 6 to
8 form part of Section 2.
Assume that a short period of time has passed and the project has commenced
(but has not yet been completed).
If you are basing this assessment on Manager Networks, further information to
complete the next steps is available in the Simulation Pack. Assume that one
month has passed.
If you are basing this assessment on your own business or workplace, you should
have sufficient financial information available about actual costs of the project to
date. The costs should indicate at least one variance requiring action.

6. Monitor the project costs (early on in the Project life cycle) and take any necessary action

First record any actual costs to your budget using the processes and procedures
outlined in your Cost Management Plan. Then use the recorded information to
identify any cost variations. For at least one variation:

 identify at least two alternatives where resources and budget can be adjusted
to accommodate the variation

 evaluate the alternatives

 implement the best way forward (by updating your budget).

Review the cost management processes followed by your team to date.

i If you previously used the Budget Template, add the necessary information in the
relevant spreadsheet using the same MS Excel workbook. Otherwise, use the
processes and procedures of your specific organisation.
Make sure your actions match those outlined in your Cost Management Plan.
Assume you have permission to implement the budget and resource changes.

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 Change the version number of your cost estimate and budget workbook.

7. Provide an interim financial report to an appropriate stakeholder

Write a financial report that includes:

 a summary of the finances to date.

 current expenditure details

 variations and actions taken to address the variation

 a review of the cost management processes to date.

Draft an email to the stakeholder to share the report with them. In your email,
include general information about the report (e.g. what it is, how it can be accessed
such as a link to the cloud-based storage location or a reference to an attachment,
any action required by the stakeholder).

i You may use the template provided in the Simulation Pack for your report, or any
other relevant template as per your organisation’s requirements.
The text of your report and draft email should be in grammatically correct English,
written in an appropriate (polite, business-like) style.

Assume that a further period of time has passed and the project has commenced
(but has not yet been completed).
If you are basing this assessment on Manager Networks, further information to
complete the next steps is available in the Simulation Pack. Assume that three
months has passed.
If you are basing this assessment on your own business or workplace, you should
have sufficient financial information available about actual costs of the project. The
costs should indicate at least one variance requiring action.

8. Repeat steps 6 and 7 for the later time period

Use the additional financial information from the Simulation Pack or your business
to repeat steps 6 and 7 at a later period of time (before the project is completed).

Make sure you have answered all questions in Section 2.

You are required to attach certain documents as part of your evidence – review the
documents you need to attach as outlined in Section 2 of the Project Portfolio.
Submit Section 2 to your assessor.
Assessor: see Project Portfolio Assessor Section 2 for guidance with marking.
Provide feedback and if necessary, ask the student to make adjustments and
resubmit their work.

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 i Start working on Section 3 Complete cost management processes of your Project
Portfolio. Step 9 forms part of Section 3.
Assume that the project has now been completed.

If you are basing this assessment on Manager Networks, further information to

complete the next steps is available in the Simulation Pack.
If you are basing this assessment on your own business or workplace, you should
have sufficient financial information available about actual costs of the project.

9. Review the cost management processes

First record any final income/expenses to your budget, then review your financial
reports (prepared in steps 7 and 8). Use the recorded information to:

 summarise the project outcomes

 identify any cost management issues over the project’s life cycle (at least one)

 make recommendations for future improvements (at least three).

10. Submit your completed Project Portfolio

Make sure you have completed all sections of your Project Portfolio, answered all
questions, provided enough detail as indicated and proofread for spelling and
grammar as necessary.
Submit to your assessor for marking.

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Assessment Task 2: Checklist

Student’s name:

Completed
successfully? Comments

Did the student: Yes No

Summarise important cost management

information, including:

 the financial objectives of the

project

 your role in the project (including

the responsibilities)

 organisation’s budget (or any other

budget relevant to the project)

 cost management (policies and

procedures)

 the project task and its activities

(including the Work Breakdown
structure (WBS))?

Meet with at least two project team

members to:

 discuss the financial objectives of

the project and agree on actions
required to maintain these
objectives

 identify the resources required for

each task in the WBS

 agree on the maximum project

costs for required resources

 discuss and agree on processes

and procedures for monitoring
actual expenditure during the
project lifecycle against the budget
(including details about the ongoing
recording of income and expenses
as well as timely, accurate financial
reporting)?

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Develop a cost estimate for resources
by:

 estimating costs using an

appropriate technique

 using the internet to research

resource and activity costs.

 seeking input from an external

stakeholder

 using exiting information (e.g.

previous budget) to obtain
information on resource and activity
costs

 using a digital technology

application to record cost
estimates?

Develop a budget using a digital

technology application?

Develop a Cost Management Plan that

includes:

 a brief introduction

 financial objectives of the project

 actions required to maintain

financial objectives

 identify the resources required

 estimated and maximum project

costs for required resources

 processes and procedures for

monitoring actual expenditure
against the budget (these
processes must include the
recording of actual expenses)

 potential causes for increased costs

 cost control procedures (variation

rates and approval requirements)?

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Monitor project costs and review cost
management processes on two
occasions by:

 recording actual expenditure

 identifying variations

 identifying at least two alternatives

where resources and budget can be
adjusted to accommodate at least
one variation

 evaluating the alternatives

 implementing he best way forward

(by updating their budget)

 reviewing the cost management

processes followed by their team at
the time of monitoring?

Write a financial report (on two

occasions following the monitoring) that
includes:

 a summary of the finances to date.

 current expenditure details

 variations and actions taken to

address the variation

 a review of the cost management

processes to date?

Draft an email (one separate occasion

for each report) to a stakeholder to share
the report with them?

Review the cost management processes

by:

 recording any final

income/expenses

 summarising the project outcomes

 identifying any cost management

issues over the project’s life cycle
(at least one)

 making recommendations for future

improvements (at least three)?

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Demonstrate effective oral
communication including:

 speaking clearly and concisely

 using an appropriate tone and the

correct syntax

 asking questions to identify required

information

 responding to questions as required

 using active listening techniques to

confirm understanding?

Task outcome:  Satisfactory  Not satisfactory

Assessor signature:

Assessor name:

Date:

BSBPMG533 Manage project cost | 17

 Final results record

Student name:

Assessor name:

Date

Final assessment results

Result

Task Type Satisfactory Unsatisfactory Did not submit

Assessment Task 1 Knowledge questions S U DNS

Assessment Task 2 Project Portfolio S U DNS

Overall unit results C NYC

Feedback

 My performance in this unit has been discussed and explained to me.

 I would like to appeal this assessment decision.

Student signature: _________________________________________ Date: _________________

 I hereby certify that this student has been assessed by me and that the assessment has been
carried out according to the required assessment procedures.

Assessor signature: _______________________________________ Date: _________________

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