Cost Management
LO 8.1 Understand the various types of common project costs and key differences between them.
Cost management is extremely important for running successful projects. The management of costs, in many ways, reflects the project organization’s strategic goals, mission statement, and business plan. Cost management has been defined to encompass data collection, cost accounting, and cost control,2 and it involves taking financial-report information and applying it to projects at finite levels of accountability to maintain a clear sense of money management for the project.3 Cost accounting and cost control serve as the chief mechanisms for identifying and maintaining control over project costs.
Cost estimation is a natural first step ...
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