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COST MANAGEMENT - Coggle Diagram
COST MANAGEMENT
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Determine budget process
Process of arregating the estimated costs of individual activities or work packages to establish an authorized cost baseline
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Estimate Costs process
Process of developing an approximation of the monetary resources needed to complete project activities
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Costs are estimated for all resoures that will be charged to the project - labor, materials, equipment,...
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Accuracy of estimates
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Ranges are wider in the beginning of the project and will narrow as more information is dertermined during project
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Definitive ETA
Later during the project, ETA will become more refinied
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Types of Cost (4 mains)
Variable Costs: Costs change with amount of Production/ work - Wages, material
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Direct costs: Direct attributable to the work on project - wages, materials
In deric cost: Overhead item or costs incurred for the benific of more than one project - taxt, security of company
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Value Engineering
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if team is devreasing costs with same scope, they are performing value analysis
Estimating
Tools and technique used in estimate activity duaration process can be used in estimate costs process as well
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Life cycle costing
looking at the cost of whole life of product, not just the cost of product in the project
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