As the name suggests, it deals with managing cost of the project. Project Cost Management is the process of controlling and monitoring costs within a project. It calculates total cost of undertaking each project activities, monitors the total forecast cost Vs actual cost, identifies potential and current over-runs and checks the consumption rate of the project budget.
This includes activities like estimating the cost of each of the project activities, controlling the cost to ensure that project activities gets done within the defined budget, adding up the cost estimates of the related activities to arrive at the cost budget. First thing to be done here is Cost management plan.
The Cost Management Processes are:
Estimate Cost:
Estimate cost is the process of developing an approximation of the monetary resources needed to complete project activities. Cost estimates are a predication that is based on the information known at a given point in time.
Determine Budget:
Determine Budget is the Process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline (all authorized budgets but excludes management reserves).
Control Cost:
Control cost is the process of monitoring the status of the Project to update the Project budget and managing changes to the cost baseline. Any increase to the authorized budget can only be approved through the Perform Integrated Change Control Process.
These processes help to effectively manage cost and to increase your chances of delivering your project to budget.So pmp certification really help you to be successful in this problem.