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 an approved budget. It includes four main 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 increase project scope

• 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?

• Estimate Costs

• Control Costs

• Determine Budget

• Planned Cost Management

What is the purpose of estimating costs in project management?

• To determine the project timeline

• To allocate project resources

• To develop an approximation of monetary resources needed

• To identify project risks

How is the budget determined in project cost management?

• By aggregating the estimated costs of individual activities

• By reviewing past project budgets

• By estimating the total project duration

• By analyzing project risks

What does controlling costs in a project involve?

• Increasing project scope

• Monitoring project status and managing changes to the cost baseline

• Reducing project quality

• Extending project deadlines