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 Reporting Period?
When a contract is made with the contractor and the project starts, it is important to check whether the actual ...
What is Just-in-Time Manufacturing?
In quality management, a concept of Just-in-Time is generally used. Just-in-time manufacturing is a type of manufacturing which focuses on ...
What is Organizing?
One of the responsibilities of a project manager is organizing the project. It involves allocating appropriate resources to the tasks ...
What is Seller Proposal?
A buyer identifies the need for procurement and requests the potential sellers and vendors to respond. In response to the ...
What is Feeling Depressed?
Every occupation has some stressful situations that affect the individual's performance. Situations that can cause stress during a job can ...
What is Master Production Schedule?
When the work is planned and authorized, using subdivided work description (SWD), the production can take place. Before starting the ...
