7.3 Determine Budget Flashcards
What is Determine Budget process?
It is the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline
What is the benefit of Determine Budget process?
It determines the cost baseline against which project performance can be monitored and controlled
What does cost management plan contain ?
It contains a description of how the project costs will be managed and controlled.
How does Scope Baseline help with determine budget?
It contains project scope statement which describes the formal limitations by period for the expenditure of project funds mandated by the organisation, by agreement or by other entities such as government agencies
What are the inputs to Determine Budget process?
/cost management plan /cost baseline /activity cost estimates /basis of estimates /project schedule /resource calendars /risk register /agreements /organisational process assets
What are the tools used for Determining budget?
cost aggregation Reserve analysis Expert judgment Historical relationship Funding limit reconciliation
What is Funding Limit Reconciliation tool used for?
It is used for determining budget by reconciling the expenditure of funds with any funding limits on the commitment of funds for the project. A variance between planned expenditure and the funding limit will necessitate rescheduling of work to level out the rate of expenditure. This is done by placing imposed date constraints on the project schedule
What are the outputs of determine budget process?
/cost baseline
/project funding requirements
/project documents updates
What is cost baseline made up of
And how budget is arrived from this?
/Activity level cost estimates /activity level contingency reserves /work packages level costs /work packages level contingency reserves /control account costs
Budget is arrived from this by adding Managemet reserves to the cost baseline
What does funding requirements include?
It includes total funding requirements and periodic funding requirements.
It may also include the source of funding
What are the project documents updated as part of Determine Budget process?
/Risk Register
/Activity Cost Estimates and,
/Project Schedule
