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Project Cost Management Introduction – PMP/CAPM

Project Cost Managementย ย (A high-level snapshot)

Project Cost Management Knowledge Area is about planning, estimating, budgeting, financing, funding, managing & controlling the cost so that the project can be completed within the approved budget

Project Cost Management Knowledge Area Processes

Plan Cost Management (Planning)

  • It provides guidance and direction on how the project costs will be managed throughout the project
  • The process of defining how the project costs will be estimated, budgeted, managed, monitored, and controlled
  • Performed once or at predefined points in the project

Estimate Costs (Planning)

  • Determines the monetary resources required for the project

    Project Cost Management
    Project Cost Management
  • A process of developing an approximation of the cost of resources needed to complete project work
  • Performed periodically throughout the project as needed

Determine Budgetย (Planning)

  • Determines the cost baseline against which project performance can be monitored and controlled
  • The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline
  • Performed once or at predefined points in the project

Control Costs (Monitoring and Controlling)

  • The cost baseline is maintained throughout the project
  • The process of monitoring the status of the project to update the project costs and managing changes to the cost baseline
  • Performed throughout the project

Further Information on Project Cost Management Knowledge Area

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