4Cost Management
What is the cost baseline?
The cost baseline is the basis for the earned value reporting system. It is the budget for the estimated cost of the project spread over the time periods of the project. As we noted in Chapter 1, in managing a project we are concerned about three baselines: the schedule baseline, the cost baseline, and the scope baseline. These three baselines comprise the goals of any project and deliver to the stakeholders what was asked for, in the time predicted, and for the money that was estimated.
The cost baseline is the part of the project concerned with the amount of money that the project is predicted to cost and when that money will be used. The three baselines are closely related, and changes to one of ...
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