The idea of managing a project can seem like a daunting task, however, provided with the right tools, any project can achieve success. When undertaking any type of project management, there must be a working set of guidelines and objectives that must be followed, in order to guarantee success for that particular project. An essential element when entering into any type of project management is cost budgeting. To create an effective cost budgeting plan, a total budget for the entire project must first be established. To achieve this, each area of the project must be analyzed and given a particular cost estimate. Once that is done, the total sum of cost assessments, whether those costs are in individual projects or in work packages, are combined to establish a certain parameter to provide a working guideline for the budget. These guidelines are set in place so that the allotted costs are divvied up amongst the appropriate project needs. This will ensure that the budget goals are being accurately met. The process of cost budgeting is a simple, yet necessary process of any successful type of project management.

This term is defined in the 3rd edition of the PMBOK but not in the 4th.

Related Entries:

 

  • Cost-Plus-Percentage of Cost (CPPC) See cost-plus-fee. This term is defined in the 3rd and the 4th edition of the PMBOK....
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  • Cost Cost refers to the monetary value or financial pricing of a specific project activity. This cost includes all anticipated expenditures...
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  • Cost-Plus-Fee The cost-plus-fee is also referred to by the abbreviation of CPF, and represents a variant of a cost reimbursable contract...
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  • Cost Variance (CV) The term cost variance, also known by the abbreviation of CV, refers specifically to the true measurement of cost performance...
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  • Cost Estimating When creating a budget for a job, project management must be able to engage properly in the process of cost...