Project Cost Management

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 Project Cost Management
Project Cost Management includes processes required to
ensure that the project is completed within the approved budget.
It involves the following;

• Resource Planning

• Cost Estimating

• Cost Budgeting

• Cost Control

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 Project Cost Management

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 Project Cost Management

Resource Planning

Resource Planning involves determining what

physical resources, human, equipment, & material
resources, and in what quantities are needed to
successfully complete the project.

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 Project Cost Management

Cost Estimating

Cost Estimating involves developing an

approximation of the costs of the resources needed
to complete the project activities.

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 Project Cost Management

Cost Budgeting

Cost Budgeting involves allocating the overall cost

estimates to individual work items in order to
establish a cost baseline for measuring project
performance.

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 Project Cost Management

Cost Control

Cost Control is concerned with

Influencing the factors which create changes to the cost
baseline to ensure that changes are beneficial

Determining that the cost baseline has changed

Managing the actual changes when and as they occur

It includes
Monitoring cost performance to detect variances from plan
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 Cost Control

Includes

Monitoring cost performance to detect variances from plan

Ensuring all appropriate changes are recorded accurately in the

cost baseline

Preventing incorrect, inappropriate, or unauthorized changes

from being included in the cost baseline.

Informing appropriate stakeholder of authorized changes.

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 Project Time Management

Questions ?

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