Cost is not a four letter word to be viewed with disdain by the project manager. It is a necessary element of the project management process which the project manager must comprehend despite the apparent mysteries of the accounting systems employed to report cost. The concept of cost is more than the expenses incurred in the execution of the project work: the manner in which cost is treated by the organization's functional elements can affect project performance, interest expenses and profitability. Therefore, the conscientious project manager must develop a complete understanding of project cost and the accounting systems used to record and report costs. The project manager should also recognize the effect of the timing of project cost, and the differences between commitments. expenses, and cash flow. The project manager should insist on the accounting system modifications needed to accommodate project cost reporting and control requirements. Once an appreciation for these concepts has been gained, the project manager can apply this knowledge towards positively influencing project and organizational profitability in all areas of cost through control of the project schedule and the execution of the project's work.
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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.