4. Project Cost Management

Question 1

Cost Management

Answer 1

Cost is the most critical factor in any organization. The process of estimating, allocating and controlling the cost of the whole project comes in project cost management. The budget is fixed according to the project activities. The costs are estimated during the planning phase and controlled if it exceeds during execution.

Question 2

Cost Management Processes

Answer 2

20. Plan Cost Management;
21. Estimate Costs;
22. Determine Budget;
23. Control Costs.

Question 3

20. Plan Cost Management;

Answer 3

The process of cost management plan includes the policies, procedures and guidelines to plan, manage, and control the project costs. It also includes documenting the costs throughout the project. The cost management plan is done according to the project activities, schedule, resource and requirements.

Question 4

21. Estimate Costs;

Answer 4

This process includes estimating all the monetary resources included in the project activities to achieve the target on scheduled time. The costs are estimated based on the resource requirements. The main objective of this process is to determine the overall cost required to complete the process.

Question 5

22. Determine Budget;

Answer 5

The process of combining the cost of all the project activities to establish the formal cost baseline of the overall project. This process helps in projects cost flow, risk management. Cost baseline helps in monitoring and controlling the cost of individual activities.

Question 6

23. Control Costs.

Answer 6

The process of monitoring and controlling the cost of individual project activities during execution is called a control cost process. The costs are controlled and brought to the cost baseline if exceeds. The document of cost update is maintained throughout the project.