Cost Management

Project cost management explained: the four Finance processes (plan, estimate, budget, control), the financial management plan, earned value, and the PMP.

Cost estimation in project management: the techniques, estimate accuracy from ROM to definitive, how to estimate costs, and how it is tested on the PMP.

A project budget is the approved cost of a project over time. What it includes, how to build one, the cost baseline vs. reserves, an example, and the PMP exam.

Contingency reserve vs. management reserve: which covers identified vs. unknown risks, which sits in the cost baseline, how to calculate them, and the PMP.

Earned value management measures performance across scope, schedule, and cost: the PV, EV, AC values, the formulas, a worked example, and the PMP exam.

Cost variance (CV = EV − AC) measures budget performance. The formula, how to read it, schedule variance, the percentages, a worked example, and the PMP exam.

The cost performance index (CPI = EV/AC) and schedule performance index (SPI = EV/PV): the formulas, how to read the values, a worked example, and the PMP exam.

Estimate at completion (EAC) forecasts a project's final cost: the four EAC formulas and when to use each, plus ETC, VAC, TCPI, and how it is tested on the PMP.