Cost management knowledge area
There are four process in this cost management knowledge area
- Plan Cost Management
- Estimate Cost Process
- Determine Budget Process
- Control Cost Process
Plan Cost Management
Just like all of the other knowledge areas, you need to plan out all of the processes and methodologies you’ll use for Cost Management up front.
Estimate Costs process
This means figuring out exactly how much you expect each work activity you are doing to cost. So each activity is estimated for its time and materials cost, and any other known factors that can be figured in.
Determine Budget process
Here’s where all of the estimates are added up and baselined. Once you have figured out the baseline, that’s what all future expenditures are compared to.
Control Costs process
This just means tracking the actual work according to the budget to see if any adjustments
Need to be made.
The Plan Cost Management process is where you plan out all the work you’ll do to make sure your project doesn’t cost more than you’ve budgeted.