PMP Certification Training - Overview of Project Cost Management and Processes

Project cost management involves planning, estimating, budgeting, and controlling costs to complete a project within an approved budget. It is crucial due to its sensitivity and the scrutiny it receives from stakeholders. The process includes establishing cost estimates, budgets, and monitoring costs. Stakeholders play different roles, and their involvement may vary based on project complexity. The four main processes are planned cost management, estimate cost, determine budget, and control cost.

What is a primary concern for sponsors and customers in project cost management?

• Maximizing the project scope

• Minimizing the project duration

• Ensuring accurate cost estimates and budget management

• Increasing the number of project resources

Why is it beneficial to agree on the project scope early?

• It reduces the need for stakeholder involvement

• It allows for more flexible budgeting later

• It ensures faster project completion

• Costs are more easily influenced early in the project

Which of the following is NOT a process in project cost management?

• Planned cost management

• Estimate cost

• Resource allocation

• Control cost

What is the role of 'Determine Budget' in project cost management?

• To monitor project status and update costs

• To aggregate estimated costs to establish a cost baseline

• To define how costs will be controlled

• To develop an approximation of monetary resources needed

How does 'Control Cost' contribute to project cost management?

• By monitoring project status and managing changes to the cost baseline

• By defining the project's financial goals

• By increasing the project's scope

• By estimating the total project duration