Cost Baseline Notes: Definitions & Explanations PDF | Download eBooks
Study Cost Baseline lecture notes PDF with project management definitions and explanation to study “What is Cost Baseline?”. Study cost baseline explanation with project management terms to review project management course for online MBA programs.
Cost Baseline Definition:
Cost Baseline is defined as the approved version of the timephased project budget that is used as a basis for comparison to the actual results.
A Guide to the Project Management Body of Knowledge by Project Management Institute
Cost Baseline Notes:
Cost baseline is basically a detailed budget of the project. The cost estimates of all the associated activities are included in the cost baseline. It is a plan to address the cost issues of the project. Cost baseline, along with the project budget in general, includes the contingency reserves (also known as management reserves) to cope up with any potential risks. A project is divided into different work packages. The cost estimate of each work package is established and the sum of these costs make up the cost baseline. Cost baseline is used to compare the actual costs with the estimated ones to show any deflection from the project budget.
Keep Learning with Project Management Notes
What is Project Planning?
Planning is defined as setting a path that must be followed in order to achieve a goal. Project planning is ...
What is Inspection?
Inspection involves examining a product to scrutinize, based on its conformance to requirements. The quality standards for the products are ...
What is Quality?
In case of project management, the quality of the deliverables must be good to achieve customer satisfaction. Quality is the ...
What is Analogous Estimating?
When the activities associated with the project are defined, their duration estimates and cost estimates must be made in order ...
What is Audit?
Before starting a project, the project is planned by considering the project objective, organization objective, policies and procedures etc. Even ...
What is Probability and Impact Matrix?
There are two things associated to risk; probability of occurrence, and impact. Both the factors must be analyzed properly in ...