Manage Project Cost

Manage project cost

Contents
MAIN BODY..............................................................................................................................................3
TASK 1...................................................................................................................................................3
TASK 2...................................................................................................................................................7
TASK 3.................................................................................................................................................10
REFERENCES..........................................................................................................................................12

MAIN BODY
TASK 1
Discuss the key purpose and objectives of budgeting in project management
A Project Budget is the cumulative number of financial money distributed for a particular span
of time for various project objectives (Bonoli, Natili and Trein, 2019). Project budget
management is designed to forecast and monitor project expenses under the budgeted amount
and to meet the project's specified objectives.
Outline the main steps in the budgeting process for a project
Step 1: Set Achievable Targets.
Step 2: Classify your Revenue and Expenditures.
Step 3: Wants and desires independently.
Step 4: Project the Budget.
Step 5: Bring into motion your strategy.
Step 6: Seasonal prices.
Step 7: Glance back.
Why key performance indicators are used in budgeting
An important way to keep track of the financial wellbeing of an organization can be a
performance measure, or KPI, for financial planning. KPIs are metrics from which, over a given
period of time, a business can track its success. KPIs also help prepare potential spending for an
organization. The example of KPI is cost indicator, revenues, variances.

Explain the use of milestones in budgeting.
Milestones are devices used to mark particular points in a project timetable in managing projects.
These factors which signify links, including the begin and finish date of the project, or a need for
external review or feedback and budget controls. In certain cases, project length is not influenced
by milestones (Kaufman and Covaleski, 2019).
Explain the importance of budgetary control
Budgeting is an integral aspect of all strategy and management practices and is commonly used
by administrators at any level of the enterprise to schedule, track and control multiple operations.
Explain the purpose of using spreadsheets for developing budgets.
It is possible to use spreadsheets to system containing which has been transferred from other
programs. Online data processing systems often do not display information in a way that is easy
to read, or it is impossible to view the information offline (Lei, Nicolau and Wang, 2019). It is
possible to use the data in a spreadsheet to create maps that can then be used for reporting. Users
will construct graphs and charts in a way that is easy to interpret at a glimpse, condensing the
results. It's a great feature and can be great for organization meetings that enable one to display
tones of details in a limited time. The main features of spreadsheet are that it offers accurate
outcome in terms of calculations. As well as spreadsheets contain different formulas for making
calculations which reduce the time and cost.
Explain two methods for conducting project cost estimating.
 Expert Judgment- Expert Judgment is a methodology in which a judgment is given on the
basis of a certain collection of requirements and/or experience gained in a particular field
of information, application or service sector, a particular discipline, a business, etc.