http://www.alsenosy.com | http://www.professionalengineers.us- Answer: B.
PMBOK®Guide,page 231 ,Introduction;andpage 232 ,Figure 7 – 1
ProjectCost Management
Project Cost Management includes the processes involved in planning, estimating, budgeting,
financing,funding,managing,andcontrollingcostssothattheprojectcanbecompletedwithinthe
approvedbudget.
TheProjectCostManagementprocessesare:
1 Plan Cost Management –The process of defining how the project costs will be estimated,
budgeted, managed, monitored, and controlled.
2 Estimate Costs –The process of developing an approximation of the monetary resources
needed to complete projectwork.
3 Determine Budget –The process of aggregating the estimated costs of individual activities or
work packages to establish an authorized costbaseline.
4 Control Costs –The process of monitoring the status of the project to update the project
costs and manage changes to the costbaseline.
Answer: A.
PMBOK®Guide,pages 238 – 239 ,Section 7. 1. 3. 1
CostManagementPlan
Thecostmanagementplanisacomponentoftheprojectmanagementplananddescribeshowthe
projectcostswillbeplanned,structured,andcontrolled.Thecostmanagementprocessesandtheir
associatedtoolsandtechniquesaredocumentedinthecostmanagementplan.
Forexample,thecostmanagementplancanestablishthefollowing:
o Unitsofmeasure.Eachunitusedinmeasurements(suchasstaffhours,staffdays,orweeksfor
timemeasures;meters,liters,tons,kilometers,orcubicyardsforquantitymeasures;orlumpsum
incurrencyform)isdefinedforeachoftheresources.
o Levelofprecision.Thedegreetowhichactivitycostestimateswillberoundedupordown(e.g.,
US$ 100. 49 toUS$ 100 ,orUS$ 995. 59 toUS$ 1 , 000 ),basedonthescopeoftheactivitiesand
magnitudeoftheproject.
o Levelofaccuracy. Theacceptable range(e.g., ± 10 %)used indetermining realisticactivitycost
estimatesisspecified,andmayincludeanamountforcontingencies.
o Organizationalprocedureslinks...
o Controlthresholds.Variance thresholdsfor monitoringcost performance may bespecified to
indicateanagreed-uponamountofvariationtobeallowedbeforesomeactionneedstobetaken.
Thresholdsaretypicallyexpressedaspercentagedeviationsfromthebaselineplan.
o Rulesofperformancemeasurement...
o Reportingformats...