Determine Budget Inputs

Outputs from other Planning processes, including the Create WBS, Schedule Development, and Estimate Costs processes, must be completed prior to working on Determine Budget because some of their outputs become the inputs to this process. The inputs for Determine Budget are as follows:

Activity cost estimates These are an output of the Estimate Costs process. Activity cost estimates are determined for each activity within a work package and then summed to determine the total estimate for a work package.

Basis of estimates This is also an output of the Estimate Costs process and contains all the supporting detail regarding the estimates. You should consider assumptions regarding indirect costs and whether they will be included in the project budget. Indirect costs cannot be directly linked to any one project. They are allocated among several projects, usually within the department or division in which the project is being performed. Indirect costs can include items like building leases, management and administrative salaries (those not directly assigned full time to a specific project), and so on.

Scope baseline Scope baseline includes the scope statement, WBS, and WBS dictionary. The scope statement describes the constraints of the project you should consider when developing the budget. The WBS shows how the project deliverables are related to their components, and the work package level typically contains control account information (although control accounts can be assigned at any level of the WBS).

Project schedule The schedule contains information that is helpful in developing the budget, such as start and end dates for activities, milestones, and so on. Based on the information in the schedule, you can determine budget expenditures for calendar periods.

Resource calendars Resource calendars help you determine costs in calendar periods and over the length of the project because they describe what resources are needed when on the project.

Contracts Contracts include cost information you should include in the overall project budget. We'll talk more about contracts in Chapter 7.

Organizational process assets The organization process assets that will assist you with the work of this process include cost budgeting tools, the policies and procedures your organization (or PMO) may have regarding budgeting exercises, and reporting methods.

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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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