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Controlling cost means monitoring and controlling updates and changes to costs, budget, and the cost baseline of the project. Monitoring and controlling costs has two dimensions to it: expenditure of project funds and the work performed as a result of those expenditures. One major aspect of cost monitoring and controlling is to determine the relationship between the expenditures and the accomplishments. The cost performance depends on this relationship. The other main aspect is to control the changes to the approved cost performance baseline.

To be more specific, monitoring and controlling the project cost includes the following tasks:

• Influence the factors that can create changes to the approved cost baseline.

• Monitor the following:

o Work performed against the funds expended

o Variance of cost performance from the approved baseline• Prevent unapproved changes from creeping into cost reports and expenditures.

• Act to keep cost overruns within the planned acceptable limits.

• Ensure the following:

o Change requests are dealt with in a timely fashion and managed as they occur.

o Expenditures do not exceed the approved budget by period or by total amount. Any change to the budget must be approved before implementation.• Communicate with the appropriate stakeholders about the cost associated with the approved changes.

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Q: What is the purpose of cost control?
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Importance of cost control in project management?

Importance of cost control in project management?


-What is performance measurement and control system -What is the purpose of measuring business process -What is foundation of control -What is the criteria of effective control?

Q: What is performance measurement and control system ?A: Performance measurement is comparing two or more systems with one or more common independent parameter.(i.e: Time, fuel cost, processing time, microprocessor cost). Control System is the mechanism defined by the nature of the process or artificially(human factor) applied action that results with an output according to the input.Q:What is the purpose of measuring business process ?A: To get quantitive results to support qualitive decision making process.Q: What is the criteria of effective control?A: Effective control criteria is defined by how much the output is differentiating from the the predefined(assumption) "desired output" of the system.


What is Project cost control vs approved budget in project management?

Project cost control is comparing the actual project cost against planned project cost.


What challenges are faced by managers in the process of project cost control?

There are numerous challenges that are faced by managers in the process of project cost control. It is hard to ascertain the exact quantity and cost of the entire project and cost control becomes quite a task.


How are cost control and cost reduction schemes implemented in an organisation?

Lebari samuel. cost control is implemented by calling departmental heads on their spending and also be mindfull of the way you allocate fund.

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Importance of cost control in project management?

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