Because in todays world, most of the technological products have at most 2 years of a life cycle.
Cost Management Plan Example Free Courses GetSkip to main content Toggle navigation Catalog PMP Certification CAPM Certification Agile Training Corporate Training 60 PDU Renew PMP Free Courses Get Started Home Project Management PMP 4 Main Processes of Cost Management 4 Main Processes of Cost Management December 6, 2020 December 9, 2020 Cemre Akkartal PMP 5 min.There are several activities in a project, several project resources work on project activities and several materials, tool and equipment are used to complete the project scope.
Because you need to purchase tools, materials, and the company must pay salaries of the project personnel. This knowledge area deals with the management of the expenses and the budget of the project. Attend our 100 Online Self-Paced One-Hour Free PMP Training. ![]() Cost Management Plan Example Free Project ManagementYou can see sample free project management templates to have an idea of how they work. In Project Management Professional training, you can find detailed information about the processes and the other important terms of Cost Management. Also, there are many sample PMP exam questions about Cost Management knowledge area. If you are in the process of application for PMP, these questions will be useful to assess your knowledge. What is Cost Management It includes processes required to complete the project within the approved budget. With its processes, this knowledge area aims to determine the required budget to complete the project and then aims to monitor and control the project costs to meet the determined budget. After the project scope is clear and project activities are determined, each project deliverable and each project activity will have an associated cost. Because, project resources will perform activities, and they have some costs to projects such as expenses, salary etc. And there will be tools, materials or equipment that need to be used during the project as well. This knowledge area primarily concerns with the cost of resources needed to complete the project activities. After the budget is determined, cost management will keep on measuring and monitoring the cost performance of the project to meet the agreed budget. Cost Management has 4 processes, three of these processes belong to planning process group, and on of them belongs to monitoring and controlling process group. These processes are: Plan cost management Estimate costs Determine budget Control costs. Cost Management Plan Example How To Manage ExpensesThe Importance of Cost Management This knowledge area plans how to manage expenses and budget of a project, monitor and control the status of the project and measures budget performance. Cost Management in Project Management: 4 Main Processes Plan Cost Management Process The first process of this knowledge area is plan cost management process. In this process, how to determine budget, estimate costs and manage the expenses throughout the project are planned. Cost Management plan is the primary output of the this process. Two Important Terms in Plan Cost Management Process Life cycle costing is an important term in project management.
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