Study Guide To Pmp 7ed Budget Management

(1.0) This chapter covers the following topics in the Cost Management knowledge area: PLAN COST MANAGEMENT: Examine the common processes, tools, and artifacts needed to estimate costs on a project and determine the budget for the project. The process of defining how the project costs will be estimated, budgeted, managed, monitored, and controlled. ESTIMATE COSTS: Review process and tools for estimating costs of activities, work packages, other components of project. The process of developing an approximation of the monetary resources needed to complete project work. DETERMINE BUDGET: Review the process of aggregating costs to ascertain the time-phased budget for the project. The process of aggregating estimated costs of indiv. activities or work packages to establish authorized cost baseline. CONTROL COSTS: Briefly examine the process of tracking cost across the project The process of monitoring the status of the project to update the project costs and manage changes to cost baseline. is primarily concerned with the cost of the resources needed to complete project activities. Project Cost Management should consider the effect of project decisions on subsequent recurring cost of using, maintaining, and supporting the product, service, or result of project. For example, limiting the number of design reviews can reduce