8 Cost Estimation and Budgeting

Chapter Objectives

After completing this chapter, you should be able to:

  1. 8.1 Understand the various types of common project costs and key differences between them.

  2. 8.2 Apply common forms of cost estimation for project work, including ballpark estimates, definitive estimates, parametric estimates, and learning curve.

  3. 8.3 Apply top-down, bottom-up, activity-based, and time-phased budgeting procedures for cost management.

  4. 8.4 Recognize the appropriateness of applying contingency funds for cost estimation.

PROJECT MANAGEMENT BODY OF KNOWLEDGE CORE CONCEPTS COVERED IN THIS CHAPTER:

  1. Plan Cost Management (PMBoK sec. 7.1)

  2. Estimate Costs (PMBoK sec. 7.2)

  3. Determine Budget (PMBoK sec. 7.3)

  4. Control Costs (PMBoK sec. 7.4) ...

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