Examples Of Project Cost Management

The study of Project Management typically consists of learning the tasks and challenges fundamental to managing complex projects across multiple functions. This includes objective setting and project design; managing without influence to gain the support of stakeholders and access to resources not directly under their management control; planning, scheduling, budgeting and monitoring; and risk assessment and management.

Cost Management is used to outline the costs of planning a project. Estimating costs through data collection, design planning, and budgeting are used throughout facility planning to reduce costs

Eichenberger, J. (1998). Project management, part III budgets for projects. AAOHN Journal, 46(5), 268-70. Retrieved from http://search.proquest.com/docview/101346

Part of project management is the estimation of the project cost. The budget can be derived from the project plan by looking at the following criteria (Marchewka, 2009):

Another element that is essential in the project management plan is the cost management plan. The main focus of the cost management plan is overseeing the cost of the necessary resources for the execution of the project (PMI, 2013). This function is completed within the planning stage of an endeavor to provide a structure to support performance and efficiency throughout the lifecycle of the undertaking (PMI, 2013). For the AAE Project, analogous and parametric estimating was utilized in estimating the potential costs of the endeavor. Appendix T shows the cost breakdown of each activity within the project by separating the salaries, equipment/vendor costs, and vendor contract costs. Since

Project management is defined by BusinessDictionary.com as, “Approach to management of work within the constraints of time, cost, and performance requirements.” Project management requires careful planning and studying all of the factors involved with in the project. Project Managers must first establish the needs of the stakeholders and provide a project plan which includes the cost and time frame the project will be completed. In addition, projects requirements should be clear and concise to ensure the Project Manager stays within

In summary budget include whole project budget. Project manger as to give cost of whole amount. Even they describe part of budget. Summary budget summaries all cost, hardware wage and then total cost. Hardware budget give in breakdown system.

The Project Manager will develop the preliminary budget and timeline based on the detailed project plan. Due to the uncertainties involved with estimating project requirements, management should build flexibility into the schedule. The Project Sponsor will evaluate the analysis results before formally approving the project plan, budget and timeline.

By linking cost management efforts to budgeting, companies improve the quality of information available for managers to use in developing their budgets. Accurate cost information is fundamental to budgeting. Companies that use accurate cost management techniques and provide budget developers with ready access to cost information improve both the accuracy and the speed of their budget process.

The cost planning is one of important phases for project management. It will goes through whole project’s life cycle. It is foundation of project and it will tell the project are measured, reported and controlled in every process. Estimating is the process of forecasting or approximating the time and cost of completing project deliverables.

3. Describe the basic elements of the project life cycle. Why is an understanding of the project life cycle relevant for understanding project management?

Cost management involves estimating, budgeting, and controlling costs. Budgets are an important item in project management. Cost management rates as a six. My department has budget amounts assigned for various categories each fiscal year and while I am not the only one to use these budgets, I am aware the amounts exist and if, at the end of the fiscal year, a certain category has been depleted my department has the option of holding off on purchasing an item or request a transfer of funds from a different category so the item can be purchased as soon as possible.

Project Cost Management – controlling the cost of the project, which includes estimating, budgeting, financing, funding, and managing costs of each task.

Project management is a series of steps taken in sequence to manage a project through all phases from conception to completion. The steps are documented in a strategic plan. The plan is used to ensure that all parties are working towards a common goal. Project management requires applying knowledge, skills, tools and techniques to specific activities in accordance with established standards and guidelines. There are five basic functions of project management: planning, organizing, staffing, directing, and controlling. Basic activities of project management include: identifying project requirements to define the outcomes; addressing various needs, concerns and expectations of others; setting up, maintaining and carrying out communications; managing others; creating project deliverables; and balancing competing project constraints.

According to an accounting textbook, cost is defined as a resource sacrificed or foregone to achieve a specific objective. It is something given up in exchange. It is necessary for project managers to understand project cost management since project costs money and consumes resources.