Chapter 6
Cost Management
The overall purpose of cost management is to determine the total costs of a project, to manage the costs, and ensure the project completes within the approved budget. Cost management involves estimating the costs of identified resources, developing a project baseline, comparing progress against the baseline, and controlling costs.
In an Adaptive/Agile Environment, initiatives do not benefit from detailed cost calculations due to frequent changes. Instead, lightweight estimation methods are be used to generate a fast, high-level forecast of project labor costs, which can then be easily adjusted as changes arise. Detailed estimates are determined for short-term planning horizons. Three areas comprise cost management: ...
