A Comprehensive Guide to Project Management Schedule and Cost Control: Methods and Models for Managing the Project Lifecycle

10. Budget Development

Introduction

In most organizations, senior management has the responsibility to approve and assign oversight of activities, including projects, and therefore utilize the resources within the organization. A primary task within most organizations is that of directing the distribution of finances to manage the day-to-day operations. If an organization is going to utilize a project, that organization needs to develop an overall cost of this project so that management can decide whether the project is not only feasible, but also of value to the organization. The cost of a project is usually defined by the sum of costs related to all activities required to accomplish the project objective, and this is called the project budget. ...