Chapter Name: Plan project cost management
Description:Plan project cost management: Learners define how project costs will be planned, structured, and controlled throughout the lifecycle.
Purpuse:Learners will define how costs will be planned, structured, and managed throughout the project lifecycle. This includes identifying cost control measures, approval processes, and how project financials will be tracked and reported.
Rational:Cost planning reduces financial risk and ensures proper budgeting, tracking, and accountability.
Chapter Assessment
Scope of Practical Skill
Key Requirement 1: Plan project cost management
The learner is expected to develop a comprehensive plan for managing the costs associated with the project.
Key Requirement 2: Develop a project cost estimate
The learner must estimate the costs required for the project, considering resources, materials, and time.
Key Requirement 3: Develop a project budget
The learner is required to develop a full project budget based on estimates and other financial factors.
Assessment Questions
Assessment 1 : An understanding of cost management planning processes and techniques is demonstrated
This assessment checks the understanding of cost management planning, ensuring that the correct processes and techniques are applied.
Assessment 2 : Processes for producing a project cost management plan are described with examples, which are in line with organisational requirements
This assessment requires a clear explanation of the processes used to produce the project cost management plan and its alignment with organizational standards.
Assessment 3 : Alternative costing methods and models are described with examples of their impact. Includes but is not limited to: top down, bottom up, activity-based, life cycle costing
This assessment evaluates the understanding and application of different costing methods and models, including their impact on the project.
Assessment 4 : Factors affecting project costs are identified and explained with examples of how these factors affect the project costs. Includes but is not limited to: constraints, time, resource availability, exchange rates, interest rates, prices
This assessment ensures that the factors influencing project costs are identified and their effects on the project are well-explained.
Assessment 5 : The importance of managing income and expenditure on a project is explained with examples of how they impact on the project outcome. Includes but is not limited to: impact of late payment, forecast of impact of changes, alignment with organisational cash flow, payment schedules, impact on profit expected
This assessment ensures the importance of managing income and expenditure is understood, especially in terms of cash flow, payment schedules, and their impact on project outcomes.