What Is the Main Goal of Project Cost Management in PMP?
Understand Project Cost Management’s core goal: planning, estimating, budgeting, and controlling project costs to stay within budget limits, vital for PMP exam prep and successful predictive project delivery.
Question
Which of the following best describes the goal of Project Cost Management?
A. Ensuring the project meets stakeholder expectations
B. Planning, estimating, budgeting, and controlling costs
C. Completing the project on time
Answer
B. Planning, estimating, budgeting, and controlling costs
Explanation
Project Cost Management in predictive methodologies encompasses the systematic processes of planning cost management, estimating activity costs, determining the authorized budget through cost baseline creation, and controlling costs via earned value analysis and variance monitoring to ensure the project completes within approved funding limits. This knowledge area integrates with scope, schedule, and procurement to produce outputs like the cost management plan and funding requirements, enabling project managers to track performance metrics such as CPI and forecast final costs accurately. By focusing on resource costs and contingency reserves, it prevents overruns and supports informed stakeholder decisions without conflating with time or quality objectives.