Project Cost Management - Definition, Processes, Templates
You find hereafter the definition and the processes involved in Project Cost Management (PMBOK®) as well as a free Project Cost Management Plan Template and other templates further down on this page. I developed the templates over time from real life documents.
A solid Cost Management Plan includes the details how cost will be
- Structured, and
Cost Management Definition (PMI™)
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. (PMBOK® Guide)
Cost Management Processes (PMI™)
Plan Cost Management
- Plan cost management is the process of defining how the project costs will be estimated, budgeted, managed, monitored, and controlled.
- Estimate cost is the process of developing and approximation of the monetary resources needed to complete the project works.
- Determine budget is the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
- Control cost is the process of monitoring the status of the project, to update the project costs, and manage changes to the cost baseline.
Download Area Cost Management Templates
All you need to know about Project Cost Management
Cost Management: A Strategic Emphasis, by Blocher/Stout/Juras/Smith is dedicated to answering the question: Why Cost Management? It answers this question by providing cost-management tools and techniques needed to support an organization's competitiveness, improve its performance, and help the organization accomplish its strategy.
The text is written to help students understand the broader role of cost accounting in helping an organization succeed - and not just the measurement of costs. While the text does include coverage of traditional costing topics (e.g., job-order costing, process costing, service-department cost allocations, and accounting for joint and by-products), its primary strength is the linkage of these topics, as well as more contemporary topics, to an organization's strategy. And with Connect, an easy-to-use homework and learning management solution that embeds learning science and award-winning adaptive tools to improve student outcomes, instructors receive a course solution that includes high quality content and assessment paired with assignments that help students build the skills they need to succeed.
New Co-author: Steven D. Smith is an associate professor of accountancy and the Kristine V. and Randy J. Vest Fellow in the Marriott School of Business at Brigham Young University (BYU). Professor Smith's expertise is in the areas of management control systems, focusing on the provision of incentives and performance measurement.