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Budgeting
Project managers establish and manage budgets and therefore need some knowledge of finance and accounting principles. Especially important in this skill area is the ability to perform cost estimates for project budgeting. There are different methods available to determine the project costs.They range from estimating individual activities and rolling the estimates up to estimating the project's cost in one big chunk.
After a budget is determined, you ran start spending. This sounds more exciting than it actually is. Reading and understanding vendor quotes, preparing or overseeing purchase orders, and reconciling invoices are budgeting skills that will be used by the project manager on most projects. These costs will be linked back to project activities and expense items in the project's budget. |
