To allocate funds for project activities

To estimate the total cost of a project

To control project costs

To ensure that project objectives are met

Analogous estimating

Bottom-up estimating

Parametric estimating

Expert judgment

A project budget is a detailed breakdown of the estimated costs of a project, while a project cost estimate is a high-level estimate of the total cost of a project.

A project budget is a formal document that is approved by the project sponsor, while a project cost estimate is an informal document that is used for planning purposes.

A project budget is used to control project costs, while a project cost estimate is used to allocate funds for project activities.

A project budget is typically prepared before the project starts, while a project cost estimate is typically prepared during the project planning phase.

To ensure that project costs do not exceed the approved budget

To identify and mitigate cost overruns

To improve project profitability

To optimize project resource allocation

Earned value management

Cost-benefit analysis

Variance analysis

Activity-based costing

A cost overrun occurs when actual project costs exceed the estimated project costs, while a budget overrun occurs when actual project costs exceed the approved project budget.

A cost overrun occurs when actual project costs exceed the approved project budget, while a budget overrun occurs when estimated project costs exceed the approved project budget.

A cost overrun occurs when actual project costs exceed the estimated project costs, while a budget overrun occurs when estimated project costs exceed the actual project costs.

A cost overrun occurs when actual project costs exceed the approved project budget, while a budget overrun occurs when estimated project costs exceed the actual project costs.

To cover unexpected project costs

To fund project changes

To provide a buffer for cost overruns

To increase project profitability

Direct costs

Indirect costs

Fixed costs

Variable costs

A project cost report provides a detailed breakdown of actual project costs, while a project budget report provides a detailed breakdown of estimated project costs.

A project cost report provides a high-level summary of actual project costs, while a project budget report provides a high-level summary of estimated project costs.

A project cost report is used to control project costs, while a project budget report is used to allocate funds for project activities.

A project cost report is typically prepared during the project planning phase, while a project budget report is typically prepared before the project starts.

To provide a benchmark against which actual project costs can be compared

To identify and mitigate cost overruns

To optimize project resource allocation

To improve project profitability

Earned value management

Cost-benefit analysis

Variance analysis

Activity-based costing

A project cost estimate is a detailed breakdown of the estimated costs of a project, while a project budget is a formal document that is approved by the project sponsor.

A project cost estimate is a high-level estimate of the total cost of a project, while a project budget is a detailed breakdown of the estimated costs of a project.

A project cost estimate is used to control project costs, while a project budget is used to allocate funds for project activities.

A project cost estimate is typically prepared before the project starts, while a project budget is typically prepared during the project planning phase.

To define the project cost management process

To identify and mitigate cost risks

To optimize project resource allocation

To improve project profitability

Cost estimating

Cost budgeting

Cost control

Cost reporting

A project cost overrun occurs when actual project costs exceed the estimated project costs, while a project budget overrun occurs when actual project costs exceed the approved project budget.

A project cost overrun occurs when actual project costs exceed the approved project budget, while a project budget overrun occurs when estimated project costs exceed the approved project budget.

A project cost overrun occurs when actual project costs exceed the estimated project costs, while a project budget overrun occurs when estimated project costs exceed the actual project costs.

A project cost overrun occurs when actual project costs exceed the approved project budget, while a project budget overrun occurs when estimated project costs exceed the actual project costs.