Project Cost Management Homework Help

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Project management involves planning and organizing the resources of a company to perform a specific task, event or duty. It generally involves only one time project. Project management is related to fields such as information technology (IT), health care and construction, etc. It is an important aspect of project management which includes activities and tools which help in completing the project within a given and approved budget. It makes use of technology to measure cost and productivity. It allows determining and approving the budget of the project and controls expenditure. As each project entails cost and requires specific funding, an effective project cost management is responsible for the uniqueness of the project.

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Project Cost Management Process

There are 4 processes of Project Cost Management given by Project Cost Management Homework Help are
• Resource Planning- During the initial phase of a project, the resources which are requires to complete the project activities need to be defined. The type of physical resources that are needed can be found out with the help of structure and historical information of comparable project. Physical resources include material, labor, equipment, cost, required time etc. The associated cost can be determined, once the resource type and quantities are known.
• Cost Estimation- In this phase, the project manager with the help of financial department estimates the cost required for purchasing all the necessary resources and performing necessary activities to perform the project. Estimation of project cost is carried out in planning phase. Project cost management software is used by project managers to make necessary calculations and create spreadsheets. There are several cost estimation methods that are used to predict the cost required to perform a project activity. A suitable method is chosen depending on the level of information available. There are two methods of estimating cost given by Project Cost Management Assignment Help are
Analogous Estimating – The cost of current project can be estimated by using the actual cost of similar project.
Using Parametric Model -In this model, the project characteristics are represented mathematically.
• Cost Budgeting- The budget gives the overview of the total cost of the project. Development of budget framework and determination of budget can be done with the help of cost spreadsheets. The cost estimates determine the cost of each activity whereas the budget assigns the costs over the time period when the cost will be incurred.
• Cost control- In this step, the allocated budget is analyzed and spending is tracked. Cost control measures variances from the cost baseline and takes effective actions to achieve minimum costs. It monitors expenditure and progress of the project.

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