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The Cost Management Plan

   

Added on  2020-03-16

8 Pages1854 Words34 Views
Cost Management PlanName of the universityStudent’s nameDated:

Cost Management PlanTable of contentIntroduction......................................................................................................................................3Cost Management Approach...........................................................................................................3Measuring the Project Cost..............................................................................................................4Reporting format for the Cost Management....................................................................................5Response process for the Cost variances.........................................................................................6Change Control process for the Cost parameters............................................................................6Breakdown of Project Budget..........................................................................................................7References........................................................................................................................................8Page | 2

Cost Management PlanIntroductionThis document the Cost Management Plan for the ‘Talent Contest’ is developed to provideinformation regarding one more and important knowledge area that is ‘Project CostManagement’. The first deliverable of the stage is ‘Cost Management Approach or Plan’, andthen is the ‘Cost Estimation’, ‘Develop Budget’ and finally the ‘Cost Control’[CITATION Cer171 \l1033 ]. All the sections shall be discussed in detail and need to be developed as part of the costmanagement plan. In the subsequent section the plan to manage the cost of ‘Talent Contest’ shallbe discussed. For the project ‘Talent Contest’, the Cost Manager, shall be responsible for developing thebudgeted cost of the project. Once the budget is approved, the Project Manager will manage itthroughout the project lifecycle. Each and every stage the Project Manager shall discuss thestatus and issues which are arising during the project lifecycle. For managing the cost, the Project Manager needs to always keep a track of cost performancefigures using earned value management throughout the project and also present them before theProject Sponsor and other senior executives at a regular agreed interval.But before the cost figures and the techniques of managing the cost are presented, they shall beapproved by the Project Sponsor[CITATION Pro177 \l 1033 ]. The Project Sponsor shall remainresponsible for approving the changes in the cost baseline figures; if at all any changerequirement arises during the project lifecycle.Cost Management ApproachThe cost of the ‘Talent Contest’ project shall be managed at the lowermost level of the WBS.Since the cost developed for the project is based on the bottom-up estimation method[ CITATIONMak15 \l 1033 ], so it can be easier and will definitely provide accurate data throughout theproject. Unit rate of the resources shall be assigned in the MS project software to develop theoverall cost estimation of the project as per the bottom-up estimation process. The cost accounts of the project shall be developed at the lowermost WBS level, which is justabove the activity level to monitor the earned value figures, this level is often called the workpackage. Once the project starts making progress, there shall be expenditures too and then all thePage | 3

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