Managing the Cost

The main purpose of managing cost is to make a project successful from a financial point of view. A project can be rated as successful in terms of cost if it is completed within an approved budget that contains an acceptable level of profit for a contractor. Managing cost includes the processes required to estimate and to control cost. Cost estimation is a fundamental project management activity, and e-business projects are notoriously difficult to cost estimate. However, a reliable cost estimate is a crucial project planning element.