Plan cost management
The cost management plan is similar to the schedule management plan in terms of its headers, and it sets the stage for agreement about the almighty budget early in project planning. You'll see from the following headers that they make sense as needed:
- Units of measure (How the currency is used, lump sum or otherwise. This may also include different types of currency.)
- Level of precision (Are we rounding up or down… um… up?)
- Degree of accuracy (Usually, the standard is a tolerance of +/- 10%. This can help with risk contingency, and also provides the levels we can bounce between. If we bounce out, it's time for corrective actions.)
- Organizational procedures link (The WBS is the framework for the cost management plan, so estimates, budgets, and control of costs are consistent. The WBS aspect that is used for cost accounting is called the control account, which has a unique code or number that ties it directly to the accounting...
