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Introduction to cost budgeting

   

Added on  2020-05-04

11 Pages2019 Words333 Views
Finance
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Running head: PROJECT COST MANAGEMENT TECHNIQUES PROJECT COST MANAGEMENT TECHNIQUESName of the Student Name of the university Authors Note:
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PROJECT COST MANAGEMENT TECHNIQUES1Table of ContentsIntroduction......................................................................................................................2Budget..............................................................................................................................3Inputs required for cost Budgeting..............................................................................3Tools for cost Budgeting.............................................................................................3Cost management.............................................................................................................4Inputs to cost controlling.............................................................................................5Tools and methods for cost controlling.......................................................................5Benefits of Cost control...............................................................................................6Finalization of Cost..........................................................................................................6Improvements..................................................................................................................7References............................................................................................................................9
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PROJECT COST MANAGEMENT TECHNIQUES2Introduction The report relates us to the topic of cost management involved in managing the costrequired for the setup of a new call center. It helps the various business in predicting variousexpenses in an organization which will ultimate reduce their risk of going over the budget.Reducing the cost involved in a project can be achieved by increasing hiring, coaching and lastlybetter training of staff members, keeping an eye on the action or activities of various agents,improving the resolution of first call, Improving the schedule of cost and reducing or minimizingthe cost of attrition. Various responsibilities which are involved for applying proper techniques for thedevelopment of new call center for large organization. Various factors like budget, monitoringexpenditure, finalizing of cost, improvements which are involved in this project costmanagement has been discussed in details. Budget of a project mainly depends on followingparameters like labor, materials, equipment, services and facilities. Cost control of project mainlycomprises of following things like meeting of targets, progression as planned, cost as planned.Budgeting of project mainly comprises of following parameters like baseline of the cost involvedin project. Project cost management consist of various process which mainly checks that thegiven project is completed in given time. It mainly helps in ensuring that the given project iscompleted within project.
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PROJECT COST MANAGEMENT TECHNIQUES3BudgetBudget mainly involves development of an approximation or estimation of cost ofresources which are needed for completion of various project activities. Cost Budgetinggenerally comprises of overall estimation of cost involved in project which will help inestablishing a baseline for measuring the performance of various project. Inputs required for cost Budgeting: There are certain tools involved in cost budgeting that areestimation of cost, Work breakdown structure, schedule of project. It helps in estimation of costof various resources like hardware, software, development of team salaries, training, operationlabor which are involved in a project has been discussed in details. It can be present in summaryor in details (McNeil, Frey and Embrechts., 2015). Scheduling of project is inclusive of plannedstart and proper finished dates for a project. Tools for cost Budgeting: Tools and techniques are considered to be mandatory for projectdevelopment and estimation of cost and development of budget of various work items involvedin a project (Meng., 2012). There are certain tools like Analog estimation, parametric modelling,Bottom-up estimation, tools for computerized, bottom up estimation, computerized tools.Analog estimation: Analog estimation is also known as top down estimation whichmeans the cost of a previous project is compared with the present cost of project that is theimplementation of new call center in a large firm. This method is generally less expensive thanother method or techniques. Parametric Modelling: Parametric modelling consist of various parameters of project ina mathematical model which helps in analyzing the involved cost of this project that is theimplementation of new call center. Models can be simple or complex as per the needs it is used
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