package or activity, whereas the budget allocates the costs over the time period when the cost will beincurred. A cost baseline is an approved time-phased budget that is used as a starting point to measureactual performance progress. Step 4: Cost controlCost control is concerned with measuring variances from the cost baseline and taking effective correctiveaction to achieve minimum costs. Procedures are applied to monitor expenditures and performance againstthe progress of a project. All changes to the cost baseline need to be recorded and the expected final totalcosts are continuously forecasted. When actual cost information becomes available an important part of
cost control is to explain what is causing the variance from the cost baseline. Based on this analysis,corrective action might be required to avoid cost overruns.Dedicated cost control software tools can be valuable to define cost control procedures, track and approvechanges and apply analysis. Furthermore, reporting can be enhanced and simplified which makes it easierto inform all stakeholders involved in the project. 2.Explain how to apply cost management tools and techniques throughout a project in no more than 500 words.
- Fall '19
- cost management tools