When it comes to project management, whether or not the management team exercises cost control can make or break a project’s budget. Cost control can best be achieved by setting up a budget which is consistent with plans for actual spending. Although it might sometimes be necessary to make adjustments, it is important to adhere to the budget as closely as possible during the project management process.
Another important aspect of cost control involves collecting actual costs and regularly creating reports for those expenditures. In addition, it is essential to accurately report and regularly assess progress throughout all phases of the project. It is also advisable to keep a close eye on cost trends as well as anticipating costs of work that still remains to be completed. Once determined these figures should be closely compared to estimates for final completion of the project.
Cost variances or approved budget changes must also be accounted for to maintain proper cost control. Any discrepancies that are not within the bounds of budget constraints should be promptly brought to the attention of the project management team.
This term is defined in the 3rd edition of the PMBOK but not in the 4th.