Developing the Project Budget

THE PMP® ExAM coNTENT FRoM THE PLANNiNG The PRoJEcT PERFoRMANcE DoMAiN covered iN THis chapter iNduDEs THE followiNg:

v Obtain Plan Approval

Two of the most important documents you'll prepare for any project are the project schedule and the project budget. You'll use the schedule and budget documents throughout the Executing and Monitoring and Controlling processes to measure progress and determine if the project is on track. I believe the budget is easier to prepare after the activities have been defined and the resource estimates calculated. So now that we have the schedule in hand, we're going to spend our time in this chapter developing the budget.

There are two processes in the Planning group we'll perform that will lead us to the cost performance baseline output that is the authorized budget. They are Estimate Costs and Determine Budget. There are several tools and techniques to cover in these processes that you'll want to understand for the exam. Before we get into the details of these two processes, we'll talk about the cost management plan and its importance in guiding the development of the budget.

Next we'll talk about how project information is documented and communicated. I've talked a lot about documentation so far, and I will discuss it more in this chapter. Documentation is something you will do throughout the remainder of the project, and the Plan Communications process details how to collect information, how to store it, and when and how to distribute it to stakeholders.

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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