PMP Certification: Control Costs (based on PMBOK® Guide, 6th Edition)

— (updated )
  • WHAT Control Costs Is. Control Costs implies monitoring the project budget and managing variations to the cost baseline included in the project plan.
  • WHY Control Costs Is Important. The Control Cost process gives a project manager the tools and techniques to measure the performance of the project at a given point in time and to forecast the future performance of the project.
  • WHEN Control Costs Is Executed. A project manager performs Control Costs process regularly throughout the project. Its iterative nature emerges especially when project costs start to increase.

Project Cost Management (by Process Groups) — PMBOK® Guide, 6th Edition Update

Plan Cost Management

Estimate Costs

Determine Budget

Control Costs

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

pmp 2018 pmp certification control costs pmbok guide 6th edition tipsographic main

Control Costs 101

What Does Control Costs Involve and When Do You Perform It in a Project Life Cycle?

  • WHAT Control Costs Is. Control Costs implies monitoring the project budget and managing variations to the cost baseline included in the project plan.
  • WHY Control Costs Is Important. The Control Cost process gives a project manager the tools and techniques to measure the performance of the project at a given point in time and to forecast the future performance of the project.
  • WHEN Control Costs Is Executed. A project manager performs Control Costs process regularly throughout the project. Its iterative nature emerges especially when project costs start to increase.
  • HOW Control Costs Operates.
InputsTools and techniquesOutputs
  1. Project management plan
    • Cost management plan
    • Cost baseline
    • Performance measurement baseline
  2. Project documents
    • Lessons learned register
  3. Project funding requirements
  4. Work performance data
  5. Organizational process assets
  1. Expert judgment
  2. Data analysis
    • Earned value analysis
    • Variance analysis
    • Trend analysis
    • Reserve analysis
  3. To-complete performance index
  4. Project management information system
  1. Work performance information
  2. Cost forecasts
  3. Change requests
  4. Project management plan updates
    • Cost management plan
    • Cost baseline
    • Performance measurement baseline
  5. Project documents updates
    • Assumption log
    • Basis of estimates
    • Cost estimates
    • Lessons learned register
    • Risk register

Source: PMBOK® Guide, 6th ed., Chapter 7, section 7.4, p. 257.

Control Costs Key Terms

What Are the Key Terms to Fully Understand the Process of Controlling Costs?

  • Actual Cost (AC). The actual direct and indirect costs incurred in completing project work during a given period.
  • project management professional certification 2018 study guide free online preparation tipsographicBudget at Completion (BAC). The original total project budget to complete all the work.
  • Earned Value Management. A management methodology for integrating scope, schedule and resources and for objectively measuring project performance and progress.
  • Cost Performance Index (CPI). A relative measure of project’s cost efficiency calculated by dividing earned value by actual cost.
  • Cost Variance (CV). A measure of variance between what was planned on spending and what is actually spent, expressed as earned value minus actual cost.
  • Estimate at Completion (EAC). The forecasted cost estimate of completing all of the project work, based on performance to date.
  • Forecasting. A technique that takes time and cost performance to date and uses this information to estimates the future conditions or future performance of the project based on what a project manager knows when the calculation is performed.
  • Planned Value (PV). The value of work that should have been completed on the project at a given point in the schedule.
  • To-Complete Performance Index (TCPI). The projected cost performance the remaining work of the project must achieve in order to meet the original budget or a new approved one.

Control Costs Tips

What Are the Best Tips to Answer Correctly the PMP Cerification Exam Questions on Control Costs Process?

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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