As we have seen, cost is a complex subject that reaches far beyond the individual budget of any given project. Different areas of the company use cost information in different ways, and the information must be formulated to suit the company area that it serves.
When project managers are planning a project, and in particular are creating a project budget, knowledge of the different kinds of costs that the project will incur is essential to successful budgeting. In addition, an understanding of overall cost at a particular company in a specific industry will help project managers create budgets that take cost into proper consideration and deliver winning results.
1. Kenneth W. Milani, Ph. D., Mendoza College, University of Notre Dame, Notre Dame, Indiana.