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work. In other words, the monies spent on the project over time will equate to the work the project is completing.

Some projects, especially projects that are of high priority or large, may have multiple cost baselines to track cost of labor, cost of materials, even the cost of internal resources compared to external resources. This is all fine and dandy, as long as the values in each of the baselines are maintained and consistent. It wouldn't do a project manager much good if the cost baseline for materials was updated regularly and the cost baseline for labor was politely ignored.

EXAM TIP Monies that have already been spent on a project are considered sunk into the project. These funds are called sunk costs—they're gone.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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