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Chapter 10: Cost Control - Coggle Diagram
Chapter 10: Cost Control
Define control
Cost control is not only “monitoring” costs and recording data, but also analyzing the data in order to take corrective action before it is too late.
Purpose of control
A verification process accomplished by the comparison of actual
performance to date with the predetermined plans and standards
set forth in the planning phase.
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Benefit EVMs
The EVMS is an early warning system allowing for early identification of trends and
variances from the plan. This allows project manager sufficient time to make course
corrections in small increments. It is usually easier to correct small variances as
opposed to large variances.
EVMS should be used continuously throughout the project in order
to detect the variances while they are small and possibly easy to correct.
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Large variances are more difficult to correct and run the risk that the cost to correct
the large variance may displease management to the point where the project may
be canceled.