Reference no: EM132395987

Controlling Project Costs

Introduction:

Introduction: Having a well-developed budget allows the project manager to guide the use of resources efficiently. Budgets that are based on materials and time, may already have past data that can be used to help generate estimates. Project budgets for development (such as software) and research (a new drug) are not as easy to develop. It is important to come as close to actual costs as possible; some projects may combine several methods of forecasting to establish a more accurate budget.

Once a budget has been formulated, an ongoing issue is how to report costs as they accrue how to have funding available as needed, especially if the costs are not spread evenly over the project's time span.

Directions:

1. Using an example (real or imagined), describe two different tools or techniques that a project manager might use to control the budget in an ongoing project.
2. Also, describe how that budget may have been developed and how the development method might impact the ability to control the budget.