Cost management for the health benefit plans of others Forms for Franklin
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FAQ
Cost management is the process of estimating, allocating, and controlling project costs. The cost management process allows a business to predict future expenses to reduce the chances of budget overrun. Projected costs are calculated during the planning phase of a project and must be approved before work begins.
A cost management plan example could be the budget for a home improvement project. Direct costs would include hired labor and building materials. Indirect costs would include equipment rental fees, insurance, and general maintenance.
Definition: Cost management is a method of reducing operating or production expenses in order to provide less expensive products or services to consumers. In other words, it's the process management uses to analyze its production and streamline its operations to keep costs low and manage expenses in the future.
In simple words, a cost management plan is the outline of the project's estimation, allocation and control of costs for the required resources to complete all project activities.
7 Steps to Writing a Project Cost Management PlanDevelop Work Breakdown Structure (WBS)Identify Project Resources.Estimate the Costs.Establish Performance Indicators.Get Done with Budgeting.Formulate Cost Recording Procedures.Establish a Cost Control Mechanism.