About This Chapter
Project Cost Planning & Budget - Chapter Summary
In this engaging chapter, you'll find user-friendly lessons covering project cost planning and budgeting. On any computer or mobile device, you can study topics such as direct cost, financial planning for project management and managing project cash flow. Take your time as you make your way through this chapter, going back to review these lessons as often as needed. You'll find the lesson quizzes and chapter test are a great resource to check your comprehension before taking a test or moving on to other lessons. If you have any trouble as you work through the chapter, feel free to reach out to an instructor for help. You should be able to do the following once you finish this chapter:
- Detail the planning and estimation used in project cost management
- Analyze cost efficiency
- Give an example of direct cost
- Outline the steps used in project cost control
- Discuss financial planning as it's used in project management
- Provide examples of project cash flow
- Explain how project cash flow can be effectively managed
1. Project Cost Management: Planning & Estimation
Project cost management includes activities to estimate, monitor, and control project costs. In this lesson, we'll look at the two elements of project cost management: estimating and planning.
2. Financial Planning in Project Management
Financial planning is key to making smart project budget decisions. In this lesson, we'll learn about the two major types of budget estimates and how to develop a project budget.
3. Cost Efficiency: Definition & Analysis
In this lesson, we'll learn about cost efficiency. We'll also define the term and look at the two components that often make up cost efficiency: cost benefit and cost effectiveness. The lesson will conclude with a summary and a quiz.
4. Direct Cost: Definition, Formula & Examples
This lesson explains direct costs. Included in the lesson is how they are calculated. You'll also have the chance to examine examples of direct costs.
5. Project Cost Control: Definition & Steps
The planning, monitoring, and control of project costs is critical to successful project delivery. In this lesson, you will learn about cost control systems and why cost control is important to project delivery.
6. Project Cash Flow: Analysis & Examples
When a company is considering a new project or investment, it must have some method to evaluate whether to proceed. In this lesson, you'll learn how relevant cash flows can help with this decision.
7. Managing Project Cash Flow: Investments & Example
When management has made the decision to make an investment in a capital project, it becomes very important to budget the anticipated cash flow for that project. In this lesson, we'll learn why that's so critical and use an example to demonstrate it.
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Other chapters within the Business 311: Project Management course
- Project Management Fundamentals
- Initiating a Project
- Planning a Project
- Tools for Project Planning & Management
- Project Proposals
- Creating Contracts with Vendors
- Executing a Project
- Monitoring & Controlling a Project
- Closing a Project
- The Project Team
- Project Management Organizations & Certification
- Required Assignments for Business 311
- Studying for Business 311