PMP Certification: Plan Cost Management (based on PMBOK® Guide, 6th Edition)


  • WHAT Plan Cost Management Is. Plan Cost Management implies creating the cost management plan.
  • WHY Plan Cost Management Is Important. The Plan Cost Management process is where a project manager figures out all the work necessary to make sure the project stays within the estimated budget.
  • WHEN Plan Cost Management Is Executed. The Plan Cost Management process is performed after the scope and schedule activities of the Project Scope Management and Project Time Management Knowledge Areas. Moreover, inputs and tools and techniques are the very same for both Plan Cost Management and Plan Schedule Management. The two processes differ only for the output.
  • HOW Plan Cost Management Operates.
pmp 2018 pmp certification plan cost management pmbok guide 6th edition tipsographic main

Plan Cost Management 101

What Does Plan Cost Management Involve and When Do You Perform It in a Project Life Cycle?


  • WHAT Plan Cost Management Is. Plan Cost Management implies creating the cost management plan.
  • WHY Plan Cost Management Is Important. The Plan Cost Management process is where a project manager figures out all the work necessary to make sure the project stays within the estimated budget.
  • WHEN Plan Cost Management Is Executed. The Plan Cost Management process is performed after the scope and schedule activities of the Project Scope Management and Project Time Management Knowledge Areas. Moreover, inputs and tools and techniques are the very same for both Plan Cost Management and Plan Schedule Management. The two processes differ only for the output.
  • HOW Plan Cost Management Operates.
InputsTools and techniquesOutputs
  1. Project charter
  2. Project management plan
    • Schedule management plan
    • Risk management plan
  3. Enterprise environmental factors
  4. Organizational process assets
  1. Expert judgment
  2. Data analysis
  3. Meetings
  1. Cost management plan

Source: PMBOK® Guide, 6th ed., Chapter 7, section 7.1, p. 235.

Plan Cost Management Key Terms

What Are the Key Terms to Fully Understand the Process of Planning Cost Management?


  • project management professional certification 2018 study guide free online training tipsographicCost Management Plan. A subsidiary of the project management plan that establishes the policies and procedures to plan, execute, and control project costs.
  • Life Cycle Costing. A technique which takes account of the total cost of ownership during the whole economic life of a product. It includes initial costs, operating costs, and disposal costs.
  • Value Engineering. A project manager’s efforts to get more out of the project by any means available, for instance by decreasing costs or improving quality.

Plan Cost Management Tips

What Are the Best Tips to Answer Correctly the PMP Certification Exam Questions on Plan Cost Management Process?


  • Cost Vs. Budget. On the PMP exam, the terms cost and budget have distinct meanings. Cost designates the actual costs of each activity or work package; budget refers to costs over time.

Click here for a detailed analysis of each project management process group and knowledge area.

SOURCES: Project Management Institute (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide). 6th ed. Newtown Square: Project Management Institute.

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