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Project Cost Management
As its name implies, the Project Cost Management knowledge area centers around costs and budgets. The processes that make up this knowledge area are as follows:
Cost Estimating
Cost Budgeting
Cost Control
The activities in the Project Cost Management knowledge area establish cost estimates for resources, establish budgets, and keep watch over those costs to ensure that the project stays within the approved budget. This knowledge area is primarily concerned with the costs of resources, but other costs should be considered as well.
Depending on the complexity of the project, these processes might need the involvement of more than one person. Two techniques are used in this knowledge area to decide among alternatives and improve the project process: life-cycle costing and Value Engineering. The life-cycle costing technique considers a group of costs collectively (such as acquisition, operations, disposal, and so on) when deciding among or comparing alternatives. The Value Engineering technique helps improve project schedules, profits, quality, and resource usage and optimizes lifie-cycle costs, among others. These techniques can improve decision making, reduce costs, reduce activity durations, and improve the quality of the deliverables. Some application areas require additional financial analysis to help predict project performance. Techniques such as payback analysis, return on investment, and discounted cash flows are a few of the tools used to accomplish this.
| Process Name |
Project Management Process Group |
| Cost Estimating |
Planning |
| Cost Budgeting |
Planning |
| Cost Control |
MonitorIng and Controlling |
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