Project Cost Of Cost Management Essay

918 Words Nov 4th, 2016 4 Pages
1.1.1 Cost Management Processes
After the approval of Cost Management plan, Project Manager will ensure that following processes complete on specified times:
• Project Cost Estimation process must be completed within 14 working days of the Cost Management Plan approval. Project Control Accounts Manager and Project Finance Officer will be responsible for completing all documents related cost estimation.
• Project Budget Determination should be completed within 21 working days of the cost management plan approval. Project Finance Officer will have the duty to determine budget while Project Manager will be responsible for analyzing and approving final cost base-line.
• Project Cost Control process will start with first monthly financial report of expenditures and will proceed throughout the project life span. This process will be monitored by Project Manager in assistance with Project Finance Officer.
1.1.2 Units of Measure
Units of measure for different components of the project are every important from the cost management perspective as it sets the unit from which cost calculation becomes easy. Following are the units of measure in this project:
• Human resource cost have been calculated by the number of days.
• Cost for raw material like aluminum and glass have been calculated in terms of per square foot.
• Electric components costs have been calculated in terms of numbers of items.
• Machinery operating cost have been managed in terms of per electric unit.
• All monetary…

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