Cost Baseline : The approved version of the time - phased project budget , EXCLUDING any management reserves ( which is BAC).
Project Budget : BAC + Management Reserve
Any comments please.
Project budget or Cost budget ( BAC ) Vs Cost baseline : Refer 'Determine budget' process - page no 213 of PMBOK.
The project budget or BAC or budget at completion is never part of project management plan, only the cost baseline,
cost management plan are part of PMP.Also management reserves which are part of Cost budget may be known only to the
project manager and senior management and not at the team lead level. Still I see this in my company, all test leads
will have this in the weekly report of different test releases ?.And then when we work with EVM - earned value measurement,
we always think that EV will be reaching BAC and at times we need not use the management reserve - so does this mean we
are eating away management reserves also when the project completes - not necessary know ?.
Also the output of "Determine budget" is the cost base line and not actually project cost budget though we calculate
budget there; which in turn goes as an input to Control costs. Though we know budget, it is not in inputs to 'cost control'
(of course this is M & C part ) which is the next process of 'Determine budget'. Please confirm whether I am right ?.
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