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Chapter 7:Project Cost Management - Coggle Diagram
Chapter 7:Project Cost Management
Cost
a resource sacrificed or foregone to achieve
a specific objective or something given up
in exchange
Costs are usually measured in monetary
units like dollars
Project cost management
the processes required to ensure that
the project is completed within an
approved budget
Project Cost
Management Processes
Planning cost management
Estimating costs
Determining the budget
Controlling costs
Types of Costs
and Benefits
Tangible costs or benefits
Intangible costs or benefits
Direct costs
Indirect costs
Sunk cost
Basic Principles of
Cost Management
Learning curve theory
Reserves
Contingency reserves
Management reserves
Planning Cost Management
cost management plan
Level of accuracy and units of measure
Organizational procedure links
Control thresholds
Rules of performance measurement
Reporting formats
Process descriptions
Cost Estimation Tools
and Techniques
Analogous or top-down estimates
Bottom-up estimates
Parametric modeling
Five levels for project
portfolio management
Put all your projects in one database
Prioritize the projects in your database
Divide your projects into two or three
budgets based on type of investment
Automate the repository
Apply modern portfolio theory, including risk-return tools that map project risk on a curve