Total Budgeted Cost Notes: Definitions & Explanations PDF | Download eBooks
Study Total Budgeted Cost lecture notes PDF with project management definitions and explanation to study What is Total Budgeted Cost?. Study total budgeted cost explanation with project management terms to review project management course for online MBA programs.
Total Budgeted Cost Definition:
Total budgeted cost is the portion of the entire project budget that is allocated to complete all of the activities and work associated with a particular work package.
Successful Project Management by Jack Gido and James P. Clements
Total Budgeted Cost Notes:
After the project is planned, the project is divided into activities through work breakdown structure. A set of related activities is called work package in a work breakdown structure. While estimating costs, not only the overall project cost is estimated, but it is important to calculate the cost of each work package. The cost of the resources i.e. material, equipment, labor etc. allocated to each work package is called total budgeted cost. Two approaches of total budgeted cost are used, one is top-down approach which allocates a proportion of total project cost to each work package. The second is bottom-up approach in which involves the estimation of each activity of the work package to estimate the total budgeted cost.
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