Day 3-4 - Final Revision (Cost)

1. Day 3 Final Revision
(Cost)

2. 2
No business
in the world has ever
made more money
with poorer
management
-Bill Terry-

3. 3Cost Management
Project Cost Management includes the processes involved in planning, estimating, budgeting, financing,
funding, managing, and controlling costs so that the project can be completed within the approved budget.
Key Concepts
 Cost Estimates to measure
total cost
 Cost Baseline to define
expected cost spending
 Cost Performance
Measurements to monitor the
cost expenditure against
baseline cost

4. 4Cost Management
7.1 Plan Cost Management—The process that establishes the
policies, procedures, and documentation
for planning, managing, expending, and controlling project costs.
7.2 Estimate Costs—The process of developing an
approximation of the monetary resources needed to
complete project activities.
7.3 Determine Budget—The process of aggregating the
estimated costs of individual activities or work
packages to establish an authorized cost baseline.
7.4 Control Costs—The process of monitoring the status of the
project to update the project costs and
managing changes to the cost baseline.

5. 57.1 Plan Cost Management

6. 67.2 Estimate Costs

7. 77.3 Determine Budget

8. 87.4 Control Costs

9. 9
Bewareoflittleexpenses
Asmallleakwillsinkagreatship
Benjaminfranklin