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    Name: Raja Ahsan Waqas Id: 16485 3 Semester (MSPM-Fall-2019) Course: Project Cost Management

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    Raja Ahsan
    Raja Ahsan Waqas is a student in the 3rd semester of the MSPM program at their university, taking the Project Cost Management course. The document discusses the key differences between the Estimate Costs process and the Determine Budget process. The Estimate Costs process involves developing an approximation of the resources and costs needed to complete project work, while the Determine Budget process aggregates estimated costs to establish an authorized cost baseline against which the project can be monitored and controlled.

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    Name: Raja Ahsan Waqas Id: 16485 3 Semester (MSPM-Fall-2019) Course: Project Cost Management

    Uploaded by

    Raja Ahsan
    59 views2 pages
    Raja Ahsan Waqas is a student in the 3rd semester of the MSPM program at their university, taking the Project Cost Management course. The document discusses the key differences between the Estimate Costs process and the Determine Budget process. The Estimate Costs process involves developing an approximation of the resources and costs needed to complete project work, while the Determine Budget process aggregates estimated costs to establish an authorized cost baseline against which the project can be monitored and controlled.

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    Assignment#3-Cost Management-16485

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    Raja Ahsan Waqas is a student in the 3rd semester of the MSPM program at their university, taking the Project Cost Management course. The document discusses the key differences between the Estimate Costs process and the Determine Budget process. The Estimate Costs process involves developing an approximation of the resources and costs needed to complete project work, while the Determine Budget process aggregates estimated costs to establish an authorized cost baseline against which the project can be monitored and controlled.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    59 views2 pages

    Name: Raja Ahsan Waqas Id: 16485 3 Semester (MSPM-Fall-2019) Course: Project Cost Management

    Uploaded by

    Raja Ahsan
    Raja Ahsan Waqas is a student in the 3rd semester of the MSPM program at their university, taking the Project Cost Management course. The document discusses the key differences between the Estimate Costs process and the Determine Budget process. The Estimate Costs process involves developing an approximation of the resources and costs needed to complete project work, while the Determine Budget process aggregates estimated costs to establish an authorized cost baseline against which the project can be monitored and controlled.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Name: Raja Ahsan Waqas Id: 16485 3rd Semester (MSPM-Fall-2019)

    Course: Project Cost Management

    Estimate Costs Process:


    Estimate Costs is the process of developing an approximation of the cost of
    resources needed to complete project work. The key benefit of this process is that
    it determines the monetary resources required for the project. This process is
    performed periodically throughout the project as needed.

    Determine Budget Process:


    Determine Budget is the process of aggregating the estimated costs of individual
    activities or work packages to establish an authorized cost baseline. The key
    benefit of this process is that it determines the cost baseline against which project
    performance can be monitored and controlled. This process is performed once or
    at predefined points in the project.

    Difference between Estimate Costs Process and Determine Budget Process:

    Estimate costs is a quantitative Determine budget includes all the


    assessment of the likely costs for funds authorized to execute the
    resources required to complete the project.
    activity.

    It is a prediction that is based on the It is the approved version of the time-


    information known at a given point in phased project budget that includes
    time. contingency reserves, but excludes
    management reserves.

    Estimate costs is an approximation of Determine budget is what you’re


    what your project (or piece of it) will allowed to spend.
    cost.

    Estimate costs are simply the costs Determine budget is built using the
    associated with the work packages or cost estimates and the project
    activities within the project schedule.  schedule. The budget provides a view
    of how much the project is estimated
    to cost both from a total and a
    periodic perspective.
    It is important for all cost estimates to Determine budget must be in
    include any assumptions that were alignment with the organization’s
    made, where did the estimate funding limits in order to ensure the
    originate, who provided the funding is available and has been
    information, level of confidence, etc. appropriated.

    Cost estimating is the process of Budget estimating relies on that


    quantifying every resource that is estimate. You have to have an idea of
    going to be required to complete a what the cost will be before you set
    project. Resources means everything – out to do your budgeting. Budgeting is
    labor, materials, land (in the case of the process of identifying not the
    construction), and everything else that amounts, but the sources of the funds
    needs to be paid for in terms of the to be used to cover the cost estimate.
    project.

    Cost estimate comes first and is Determine budget is developed


    generally a broad, big picture total after the decision to commit is
    sum used in cost/benefit analysis made and is generally far more
    and strategic decision making detailed, broken into time periods
    prior to committing to a course of and used to empower, control and
    action. account for operational decisions
    made during the actual
    implementation of the strategic
    decision.

    Cost estimates include the Determine Budget is the process of


    identification and consideration of aggregating the estimated costs of
    costing alternatives to initiate and individual activities or work packages
    complete the project. to establish an authorized cost
    baseline.

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