If we are not following a cost management process, then it would be difficult to get control over the profitability of the projects. Poor cost management will also affect funding of the future projects.
Cost, in general, is a resource sacrificed or foregone to achieve a specific objective in a project. Software project costs are those costs that are directly related to the development of software projects. Project cost is usually measured in terms of monetary units and also in Dollars. Cost estimation for a project not just an one time activity. It is done throughout the life-cycle of the projects. Some examples of project costs are the costs of equipment, cost of software, cost of hardware elements, cost ...