Project Cost Management includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget.
Project Cost Management processes:
7.1 Plan Cost Management — The process that establishes the policies, procedures, and documentation for planning, managing, expending, and controlling project costs.
7.2 Estimate Costs — The process of developing an approximation of the monetary resources needed to complete project activities.
7.3 Determine Budget — The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
7.4 Control Costs — The process of monitoring the status of the project to update the project costs and managing changes to the cost baseline.
These processes interact with each other and with processes in other Knowledge Areas.
On some projects, especially those of smaller scope, cost estimating and cost budgeting are tightly linked and can be viewed as a single process that can be performed by a single person over a relatively short period of time. These are presented here as distinct processes because the tools and techniques for each are different..
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