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The Project Management Answer Book, 2nd Edition by Jeff Furman

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CHAPTER 6Cost Management: Controlling Costs and Coming in on Budget

This chapter presents key strategic concepts used by PMs for hitting their performance metrics, including sunk costs, opportunity costs, and earned value management (EVM), a toolkit of formulas PMs use to measure project health.

There are two old clichés—“time is money” and “planned versus actual”—that you may look at differently after reading about earned value. This chapter covers EVM in detail and shows how these unique formulas help you analyze time and money together. EVM is a great addition to your toolkit, because it enables you to do trend analysis and forecasting based on performance to date. PMs with this skill are able to manage more projects at once (thus, more ...

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