Why Is Project Cost Management Important

1.0 Abstract

1.1 Purpose

The purpose of this paper is to focus and understand the importance and the skill that the organization has to master in Project Cost Management.

1.2 Design/methodology/approach

This Research uses some simple example followed by all the terminology in a Project Cost Management whereby all the method are consider proven to be true and successful.

1.3 Findings

The Project Cost Management may be used differently between every country depends on the purpose of the project and the scope of the project. With the understanding of the term, it will overcome a lot of problem that would appear when the project is ongoing. Some Project Cost Management has been re-engineered or enhances to lessen the weakness of the method in

The Project Cost Management have the one key component that are required to making sure that the project will be complete within the budget allocated at the beginning of the project.

The Project Leader must know all the basic of the Project Cost Management to ensure that the project run smoothly. The project leader must make sure that all the data in the Project Cost Management are well represent on the proposal as it will make it looks like the member of the project have standby to overcome the consequences of any action that will be taken based on the budgeting and the costing that they have presented. There are a few key concepts that need to be jot down, the PCE, PCB and PCC. These three are the main fundamental that have to be included inside the project cost management.

The first one is the Project Cost Estimating, which will be affected by the estimation that the team project made in the early stage of the project. Usually the budgeting will be done in any currency formats that are suitable for the project.

2.2

Even though they have a lot of experience in managing any project successfully, they still don’t have the right to manage an IT project without knowing any fundamental on Project Cost Management in IT Industry. The project might go to haywire if the Project Cost Management is not an importance thing to be considering that the fact they will spend some money on some cost of the project that they have to spend their money on the cost of the project.

There are a lot of things that have to be considered such as tangible costs or benefits that can be measure easily in any currency. After that, intangible costs is also a thing which a state of cost that might not be able to count in any currency. These two things also related to indirect cost and sunk cost. Indirect cost affect the project indirectly affect the project in any way like services that will be used in the project. Other than that, not to forget the sunk cost which a sum of cost from the past, if the party member of the project do not care about this, the sunk cost might interfere the project cost and