Committed Cost Notes: Definitions & Explanations PDF | Download eBooks
Study Committed Cost lecture notes PDF with project management definitions and explanation to study What is Committed Cost?. Study committed cost explanation with project management terms to review project management course for online MBA programs.
Committed Cost Definition:
Committed cost refers to the cost in a situation when an item is ordered even though actual payment may take place at some later time.
Successful Project Management by Jack Gido and James P. Clements
Committed Cost Notes:
In the process of cost control, a cost reporting period is determined. All the actual incurred costs within a cost reporting period are reported. Sometimes resources are ordered that are used for a period longer than the cost reporting period. These costs are committed costs. Costs are committed when anything regarding the project is ordered and used even though the payment of that order will be made later. Committed costs are the costs that the contractor cannot ignore and is liable to pay no matter what the situation is. A committed cost is a future cost that cannot be avoided by the contractor.
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