Cost Account Notes: Definitions & Explanations PDF | Download eBooks
Study Cost Account lecture notes PDF with project management definitions and explanation to study What is Cost Account?. Study cost account explanation with project management terms to review project management course for online MBA programs.
Cost Account Definition:
A cost account is an identified level at a natural intersection point of the work breakdown structure and the organizational breakdown structure (OBS) at which functional responsibility for the work is assigned,and actual direct labor,material,and other direct costs are compared with actual work performed for management control purposes.
Project Management: A Systems Approach to Planning, Scheduling, and Controlling by Harold Kerzner?
Cost Account Notes:
One of the responsibility of a project manager is to estimate and compare costs. Project managers estimate the costs of resources needed in the project. A cost account is a point in time in which the project manager compares the actual incurred direct costs with the budgeted one. The direct costs include direct labor cost, material cost etc. A cost account can include a number of work packages whose costs are to be compared with the budget. Cost account is a very critical part of management cost and control system. Sometimes, additional resources or time is required to perform the activities in a work package. In this case the cost account is changed and a formal note must be initiated for cost account change.
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