Cost Management

Make sure you study the following key concepts in Project Cost Management.

• Estimating Cost - Analogous or Top Down Estimating; Bottom up Estimating; Parametric Estimating; Computerized Estimating Tools; Accuracy of Estimates
• Progress Reporting
• Earned Value Analysis
• Accounting Standards
• Cost Estimating vs. Pricing, Life Cycle Costing, Cost Types
• Project Selection - Profitability Measures; Return on Sales (ROS); Return on Assets or Return on Investment; Present Value; Net Present Value (NPV); Internal Rate of Return (IRR); Payback Period, Benefit Cost Ratio (BCR); Opportunity Cost
• Law of Diminishing Returns
• Contingency Reserve and Management Reserve
• Working Capital
• Depreciation
• Life Cycle Costing
• Value Analysis
• Cost Risk and Contract Type

The PM-Mentor Study Guide covers all of the above concepts and many others in much more detail.