Cost Management
Project Cost Management is all about creating an accurate cost estimate, aggregating the costs of the project deliverables, and controlling costs throughout the project. This module has some of the same terms you’ve already learned if you completed Module Six on schedule management. This is also the module that includes the details on earned value management, all of the EVM formulas, and what the results of the formulas mean. You won’t have hundreds of exam questions on EVM, but knowing the formulas will ensure that you can quickly and confidently answer these exam questions.
Have you ever noticed that it’s usually easier to get more time than more money? While this isn’t always true, increases in monies seem to be more difficult for most project managers to obtain. Stakeholders don’t like having to pay more for a project deliverable, but they’re usually more willing to give you more time to complete the project deliverable.
Of course, sometimes more time results in more money, because your project is paying for the project labor, rental equipment, or you’re facing penalties if the project runs late. Time really is money. When controlling the project costs the best thing a project manager can do is effective planning. Having a firm grasp on what it will cost to create the project deliverables comes in the form of accurate estimates as part of the planning phase.
There are three videos for the PMP Exam Prep Module Seven:
