Source: Chapter 16_3Min | mspbasics.com
I am writing to complain of the poor service I received from your company on the 5th of May, 2013. I visited one of your stores at 14 Swallow Alley and want to inform you about the inappropriate behavior of the store manager, Marina Rivera. I had made a big purchase at your store. After returning home, I looked at my purchased goods and took out a cooled chicken that I bought from your store. The date of production mentioned on the package was the 5th of May. When the package was opened, the chicken did no
Cost Baseline vs Budget Cost Baseline: Cost Baseline is the authorized time-phased spending plan for the project on which the project cost performance is to be measured against. As the Cost Baseline is baselined and managed under configuration management, changes to the Cost Baseline must undergo proper change management processes. The Cost Baseline includes all the project activities/resources costs and the money set aside to respond to risks identified (i.e. known unknowns) over time and it is usually re
Ultimately, project management includes a variety of responsibilities within one’s team in order to achieve maximum results for their employer. In regards to money and remaining in business, providing a budget that is adjusted to time is considered a cost baseline. This is used as a example in which cost performance is measured and monitored to gauge the importance of said project. This cost baseline is created by estimating the costs by the particular period that the project would be completed. This cost e
Project management must have a reserve to accommodate risks if there are any remaining risks after completion of the risk management activities. As we described earlier, you cannot transfer or mitigate all risks of a project. If there are risks, you might have reserves to accommodate those risks to minimize the impacts of risks when they occur.
In simple words, a cost management plan is the outline of the project’s estimation, allocation and control of costs for the required resources to complete all project activities. The project’s cost plan configuration is one of the most essential parts of a project’s planning phase, and effectively serves as a safety net that guarantees that project cost is kept within the limits of the budget. The cost management plan in general terms analyzes how the project costs will be planned, funded and controlled.
Cost aggregation is defined as summing the cost for the individual work package to control the financial account up to the project level. This is achieved by the summation of the lower-level cost estimates that are associated with different work packages within the work breakdown structure. The given cost control account can also be used to calculate the cost aggregation. In most cases, the cost aggregation is coupled with other tools to determine the budget such as funding limit reconciliation and reserve