8/18/2017

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Cost Budgeting

Cost budgeting involves allocating the project cost estimate to individual work items over time. The WBS is a required input to the cost budgeting process, since it defines the work items.

An important goal is to produce a cost baseline, a time-phased budget that project managers use to measure and monitor cost performance.

Estimating costs for each project activity over time provides management with a foundation for project cost control.

Cost Budgeting also provides information for project funding requirements--at what point in time will the money be needed

An excerpt from Project Management Essentials by Deepak Pandey.

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