Chapter 4: Project Cost Management
Abstract : Project cost management is the process of planning, estimating, budgeting, financing, managing, and controlling costs to ensure a project is completed within budget. It's a critical project management knowledge area that can be broken down into four processes: Resource planning Identifying and allocating the resources needed to complete the project, such as people and equipment Cost estimation Predicting the cost of a project based on its scope and complexity Cost budgeting Estimating the costs or efforts required for projects, work packages, or activities Cost control Overseeing and managing project expenses, including collecting actual costs and comparing them to the project budget The goal of project cost management is to: Avoid cost overruns and Ensure project profitability. Here are some other things to consider when managing project costs: Economic evaluation: Determining if a project is economically and technically feasib...