If you come to the Plan Cost Management process after going over the processes of the previous knowledge areas like Scope Management and Schedule Management, you are already aware of all the inputs and tools and techniques used here. Infact, you even know that the output of this process, just like the output of other first processes of planning process group, is going to be a plan. Here it is known as the Cost Management Plan.
Plan Cost Management is the first process in the Cost Management knowledge area and it falls under the Planning process group.
Cost Management Plan
The Cost Management Plan is a document and a subsidiary plan of the Project Management Plan. As a Project Manager, you will use this document to specify the accuracy of your cost estimates, the rules you’ll use to determine whether or not your cost processes are working and the way you’ll track your budget as the project progresses.
Another important aspect of the cost management plan is determining the unit of budget. It could be person-hours or actual value in money. This is something that should be clearly defined. Also, all stakeholders should know this upfront.
Basically, in this process you are planning out all the work you’ll do to ensure the project doesn’t cost more than what you have budgeted.
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