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- Project Cost Management knowledge area includes processes to come up with a cost management plan for the project and then the process to estimate the project activity cost , project budget and process of monitoring and controlling the project cost baseline.
- The ability to influence cost is greatest at the early stages of the project making scope definition vital.
- This knowledge area does not have processes in Initiating, Executing and Closing Process Groups.
- Project Cost Management must account stakeholder requirements or criteria to manage costs.
- Project Cost Management may address additional processes and numerous general financial management techniques such as return on investment, discounted cash flow, and investment payback analysis.
- The following are the processes in this knowledge area:
-> Plan Cost Management
-> Estimate Costs
-> Determine Budget
-> Control Costs
- The following are the most important outputs from this knowledge area:
-> Cost Management Plan – Planning
-> Cost Baseline– Planning
- In smaller projects, cost estimation and cost budgeting might be done as part of one single process since they are tightly linked.

Match the Following

1. Plan Cost Management - a. Activity Cost Estimates
2. Estimate Costs - b. Cost Baseline
3. Determine Budget - c. Cost Management Plan
4. Control Costs - d. Work Performance Information

Match the Following (Answers)

1. Plan Cost Management - c. Cost Management Plan
2. Estimate Costs - a. Activity Cost Estimates
3. Determine Budget - b. Cost Baseline
4. Control Costs - d. Work Performance Information