Project Management = Budgeting

Created by: Aleisha
Created on: 05-08-22 17:35

define a project budget and explain what used for

budget identifies the planned expenditure for a project and is used as the baseline against which the actual expenditure and predicted eventual cost of the work can be reported.

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Methods of estimating project budget

iteratively developed and refined
generated via:
comparative, parametric, and bottom up techniques.

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three components of project budget

base cost estimate

contingency reserve

management reserve

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categories of costs that fall within base costs

direct costs

indirect cost (cannot be allocated to one work element e.g. overheads or shared across multiple activites)

fixed costs - stable no matter the scale of output eg machine

variable cost - fluctuate based on quantity, e.g. salaries and materia

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ways of monitoring budget/costs

create a CBS cost breakdown structure
all costs hierarchically attributed to specific work packages
can aggregate these to financial reporting systems = increase visability to monitor and spot trends

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define contingency and management reserves

Contingency reserve is the money set aside to mitigate identified risks.

Management
reserve covers the cost of unexpected events.

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Other cards in this set

Card 2

Front

Methods of estimating project budget

Back

iteratively developed and refined
generated via:
comparative, parametric, and bottom up techniques.

Card 3

Front

three components of project budget

Back

Card 4

Front

categories of costs that fall within base costs

Back

Card 5

Front

ways of monitoring budget/costs

Back

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Project Management = Budgeting