In this chapter it focuses on project cost management where we need to know the importance of project cost. It is to make sure the project complete within the budget estimation. Project cost management has three phases which are cost estimating, cost budgeting and cost control. Cost estimating is to ensure project complete within budget constrain. There are three ways we can estimate budget, firstly by using analogous where take the previous project that most similar for current project that we develop and take the same cost estimation from previous project, secondly is using bottom up estimates looking all the activities that will involve in the project and make our own cost estimation and the last one us parametric modeling by using mathematical calculation for the cost estimation. Cost management plan is document use to how the organization mange the cost of the project. The main goal of cost budgeting is to create the cost baseline. Cost baseline is related to the WBS where we provide the budget for each task so we not exceed the cost until the project complete. Cost control where the financial people need to monitor and control the cost and to monitor any changes that will affect the cost of the project. Lastly in this chapter I learn on how to make sure the cost is not exceed the cost estimation because if the cost too much and the project’s sponsor and stakeholder doesn’t want to provide more cost the project will failure in the future and the project manager and team will loss.
