PMP Certification Training - Summary - Project Cost Management

Project cost management involves planning, estimating, budgeting, financing, funding, managing, and controlling costs to complete a project within the approved budget. It includes four key processes: planned cost management, estimating costs, determining the budget, and controlling costs. Planned cost management sets the policies and procedures for managing costs. Estimating costs involves approximating the monetary resources needed for project activities. Determining the budget aggregates estimated costs to establish a cost baseline. Controlling costs involves monitoring the project status and managing changes to the cost baseline.

What is the primary goal of project cost management?

• To enhance project quality

• To minimize project duration

• To maximize project profits

• To ensure the project is completed within the approved budget

Which process involves establishing policies and procedures for managing project costs?

• Control Costs

• Planned Cost Management

• Determine Budget

• Estimate Costs

What is the purpose of the 'Estimate Costs' process?

• To develop an approximation of monetary resources needed

• To finalize the project budget

• To establish a cost baseline

• To monitor project expenses

How is the 'Determine Budget' process defined?

• It involves monitoring project costs

• It aggregates estimated costs to establish a cost baseline

• It develops cost approximations

• It establishes cost management policies

What does the 'Control Costs' process entail?

• Establishing cost management policies

• Developing cost approximations

• Monitoring project status and managing cost changes

• Aggregating estimated costs