Project cost management includes the processes required to ensure that the project is completed within the approved budget. Project cost management is primarily concerned with the cost of resources needed to complete project activities. It should also consider the effect of project decisions on the cost of using the project product. This broader view of project management is called life-cycle costing.
In some application areas this process includes predicting and analyzing the prospective financial performance of the project. The information needs of the stakeholders may be different with regard to the measurement of project costs. When project costs are used as a component of a reward and recognition system, controllable and uncontrollable costs should be estimated and budgeted separately.