Learn the core processes in project cost management – Plan Cost Management, Estimate Costs, Determine Budget, Control Costs – and key terms like approximation, definition, aggregation and monitoring. Master these concepts for the PMI CAPM exam.
Table of Contents
Question
Match each Project Cost Management process with its appropriate keyword.
Process:
- Determine Budget
- Control Costs
- Plan Cost Management
- Estimate Costs
Keyword:
- Approximation
- Monitor
- Definition
- Aggregation
Answer
- Estimate Costs: Approximation
- Control Costs: Monitor
- Plan Cost Management: Definition
- Determine Budget: Aggregation
Explanation
The correct matches between the Project Cost Management processes and keywords are:
Determine Budget – Aggregation
In the Determine Budget process, cost estimates are aggregated or summed up to establish an authorized cost baseline for the project. Aggregation is the keyword that captures how individual cost estimates are rolled up into an overall project budget.
Control Costs – Monitor
The Control Costs process is focused on monitoring the status of the project to update the project costs and managing changes to the cost baseline. Monitoring project spending against the baseline budget is a core activity.
Plan Cost Management – Definition
Plan Cost Management is the process of defining how project costs will be estimated, budgeted, managed, monitored and controlled. The keyword definition refers to defining and documenting the cost management approach for the project.
Estimate Costs – Approximation
Estimate Costs is the process of developing an approximation or estimate of the monetary resources needed to complete project work. The keyword approximation underscores that cost estimates are not precise figures but rather an approximate calculation of project costs.
In summary, the key processes in project cost management are Plan Cost Management (definition), Estimate Costs (approximation), Determine Budget (aggregation), and Control Costs (monitor). Mastering these processes and concepts is crucial for project managers and those pursuing the PMI CAPM certification.
PMI CAPM certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the PMI CAPM exam and earn PMI CAPM certification.