Estimates
Developing accurate cost estimates to support spending decisions. For example, an construction firm that validates cost estimates with reference class forecasting.Analysis
Cost analysis such as cost-benefit analysis, cost efficiency and cost effectiveness calculations.Planning
Planning such as business plans, project plans and operations planning that document how costs will be spent and why.Budgeting
Developing, validating, approving and controlling budgets.Procurement
The process of acquiring goods and services including due diligence such as price comparisons.Financial Controls
The management of finances and accounting. For example, segregation of duties for submitting, approving and auditing expenses.Resource Management
Managing resources to avoid wasted expense. For example, supervision of a contractor to ensure they are delivering to commitments.Governance
Oversight of spending. For example, a program governance board that can cut off funding to a project that is over-budget, late or failing to achieve objectives.| Overview: Cost Management | ||
Type | ||
Definition | The process of planning, monitoring and controlling costs. | |
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