TABLE OF CONTENTS Project Cost Management includes the processes involved in estimating, budgeting, and controlling costs so that the project can be completed within the approved budget. Figure 7-1 provides an overview of the Project Cost Management processes which include the following:
7.1 Estimate Costs The process of developing an approximation of the monetary resources needed to complete project activities.
7.2 Determine Budget The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
7.3 Control Costs The process of monitoring the status of the project to update the project budget and managing changes to the cost baseline.
These processes interact with each other and with processes in the other Knowledge Areas as well. Each process can involve effort from one group or person, based upon the needs of the project. Each process occurs at least once in every project and occurs in one or more project phases, if the project is divided into phases. Although the processes are presented here as discrete elements with well-defined interfaces, in practice they may overlap and interact in ways not detailed here. Process interactions are discussed in detail in Chapter 3.
On some projects, especially ones of smaller scope, cost estimating and cost budgeting are so tightly linked that they are viewed as a single process that can be performed by a single person over a relatively short period of time. These processes are presented here as distinct processes because...
