O'Reilly logo

Project Management Work Book and Pmp®/Capm® Exam Study Guide, Tenth Edition by Frank P. Saladis, Harold Kerzner

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 15. COST CONTROL

Note

Project cost control includes the monitoring of project activities, the tracking and recording of project data, and the corrective actions taken to return project performance to acceptable levels when variances have gone beyond established parameters. Cost control processes should be introduced to the project team at the start of the project or at the kickoff meeting and should be performed by all project personnel who incur costs. Generally, cost control includes cost estimating, cost accounting, managing project cash flow, and other activities and tactics that may affect the financial aspects of the project. The project budget prepared by the project manager and project team includes the estimated cost of all project deliverables and the activities required to produce them plus any overhead costs, indirect costs, and contingencies that have been included to address potential project risk events. The project manager is held accountable for the successful management and control of project costs and must be prepared to act quickly when project costs begin to approach established thresholds. Continuous monitoring, analysis of variances, and identification of alternatives that may be utilized to correct variances are one of many project manager responsibilities.

The project manager's main objective regarding cost control is to maximize the probability of completing the project within the approved budget by keeping actual costs at or below planned levels, ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required