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7.0 Cost Management: - Coggle Diagram
7.0 Cost Management:
Types of Project Cost:
- Costs attributed directly to the project work that cannot be shared among projects (e.g., wages, materials, equipment).
- Overhead costs that benefit more than one project (e.g., taxes, training, project management software license).
- Costs that vary depending on the amount of work or production (e.g., materials, supplies, wages).
- Costs that remain constant throughout the project (e.g., office setup, rentals).
Plan Cost Management:
What?
- The process of defining how the project costs will be estimated, budgeted, managed, monitored, and controlled.
Why?
- Provides guidance and direction on managing project costs.
When?
- Done once or at predefined points during the project.
What is it ?
- Costs are estimated for all resources charged to the project, including labor, materials, equipment, services, and facilities.
- Special categories like inflation allowances, financing costs, or contingency costs are also considered.
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