Passing the PMP® Exam: How to Take It and Pass It

Chapter Eleven. Project Cost Management

The PMBOK describes project cost management as “the processes involved in planning, estimating, budgeting, and controlling costs so that the project can be completed within the approved budget.” As one of the triple constraints, cost is often the single most important indicator for the sponsor. (The triple constraints are cost, time, and quality.) When beginning a project, it is always a good idea to understand the mindset of the sponsor. The sponsor is likely to value one of the triple constraints more than another, and often cost will be the most important of the three constraints. If cost is the most important constraint for the sponsor, you should be sure to give status reports that show how close you ...