PMP: Cost Management : Determine Budget Tools n Techniques
Determine Budget Tools n Techniques
| Determine Budget Tools n Techniques |
| Cost Aggregation |
| Reserve Analysis |
| Expert Judgment |
| Historical Relationships |
| Funding Limit Reconciliation |
List of Determine Budget Tools n Techniques
Why the funding limit reconcillation is required
The expenditure of the fund should be reconciled if there is any limit on the fund.
To check the variance between planned expenditure and Funding limit.
To balance the reschedule of work to level out the expenditure rate.
What is contigency reserve?
This is the reserve which will include in the cost baseline.
The budget is allocated for the identified risk.
The budget is intended to address the known-unknown which can affect the project.
What is management reserve?
The amount of the reserve which was allocated during the cost budget for any unforeseen work that is within the scope baseline of the project.
Management reserve intended to the unknown-unknown which can affect the project.