Develop Cost Management Plan

Abstract

“Cost” is the most important term in the entire field of business. All concepts and meanings related to continuous improvement are ultimately tied to the term cost. “Cost” can be defined as “a resource sacrificed or forgone to achieve a specific objective.” It is usually measured by the monetary amount that must be paid to acquire goods and services. As an aid to decision-making, a project manager must know how much the use of a given project resource costs. Consequently, the objective of this chapter is to address the “cost” topics that will assist the project manager to speedily, efficiently, and effectively achieve the “process improvement” project’s goals. It is a large topic, which leads to it being a long chapter.