Cost refers to the monetary value or financial pricing of a specific project activity. This cost includes all anticipated expenditures that are expected to be part of the entire project, as well as the monetary value of the total sum of resources to be expended during the process. A specific cost can be broken down into sub costs, which can be made up of a number of unique categories. These can include direct labor hours, indirect labor hours, other direct costs, and other indirect costs. These can also include the purchased price of any specific materials and/or equipment. It is important to keep in mind that in the methodology of earned value management, in some cases the term cost represents labor hours but does not factor in a conversion to monetary value. See also actual cost and estimate.

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-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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  • Actual Cost The actual cost of a project represents the true total and final costs accrued during the process of completing all...
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  • Cost Baseline Ultimately, project management includes a variety of responsibilities within one’s team in order to achieve maximum results for their employer....
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  • Cost Budgeting The idea of managing a project can seem like a daunting task, however, provided with the right tools, any project...