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7.3 Cost Budgeting

Introduction

Cost budgeting involves allocating the overall cost estimates to individual work items in order to establish a cost baseline for measuring project performance.

7.3.1 Inputs

  1. Cost estimates
  2. Work breakdown structure
  3. Project schedule

7.3.2 Tools & Techniques

  1. Cost estimating tools and techniques

7.3.3 Outputs

  1. Cost baseline

 

 

 

 

 


7.2.1 Cost Estimating - Inputs

7.2.1.2 Work breakdown structure

The WBS will be used to allocate the costs to the project elements.

 

7.2.1.3 Project schedule

The project schedule includes planned start and expected finish dates for all project elements. This information is needed to assign costs to the time period when the cost will be incurred.

 

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7.3.2 Cost Budgeting - Tools and techniques

7.3.2.1 Cost estimating tools and techniques

Refer to Cost Estimating - Tools and techniques.

 

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7.3.3 Cost Budgeting - Outputs

7.3.3.1 Cost baseline

The cost baseline is a time-phased budget that will be used to measure and monitor cost performance on the project. It is developed by summing estimated costs by period and is usually displayed in the form of an S-curve.

Larger projects may have multiple cost baselines.

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