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Discuss The Importance Of Controlling Project Cost

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Management

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Saudi electronic university

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Running head: IMPORTANCE OF CONTROLLING PROJECT COST 1

Discuss the importance of controlling project cost

Student’s Name

Institution

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IMPORTANCE OF CONTROLLING PROJECT COST 2

Project cost control refers to the role of overseeing as well as managing projects costs

along with preparing for possible financial risks (Ganesan, 2018). Cost control entails not simply

managing the budget but as well scheduling, and preparing for prospective risks. Management of

project price sets the standard for project expenses. Efficient cost controlling makes sure that the

budget of the project is on course and will be done in line with its intended scope. Without

control of the cost, a company may easily lose funds and expenses may go above project

proceeds. A constant monitoring of main aspects of a project offers the project team vision into a

project's possible failure or success. Moreover, it recognizes all the areas that need further

attention. Corrective measures and preventive actions may bring a project back into conformity

with the project control strategy. The main purpose of cost control is to review expenditure as

well as income.

The purpose for a budget

A Project Budget denotes the entire amount of financial resources that are allotted for

specific objectives as well as goals of the project for an explicit period of time (Ganesan, 2018).

The project budget as well is an instrument employed by project managers to approximate the

entire project cost. A project financial plan template comprises a comprehensive approximation

of the entire costs that are probable to be experienced before the completion of the project. The

objective of project budget is to approximate as well as control project expenses within the

agreed budget and to attain the detailed project goals. Budgeting is indispensable within the

development of any primary business task. Without a well-organized budget, projects may

disintegrate and be left unfinished.

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Running head: IMPORTANCE OF CONTROLLING PROJECT COST Discuss the importance of controlling project cost Student’s Name Institution 1 IMPORTANCE OF CONTROLLING PROJECT COST 2 Project cost control refers to the role of overseeing as well as managing projects costs along with preparing for possible financial risks (Ganesan, 2018). Cost control entails not simply managing the budget but as well scheduling, and preparing for prospective risks. Management of project price sets the standard for project expenses. Efficient cost controlling makes sure that the budget of the project is on course and will be done in line with its intended scope. Without control of the cost, a company may easily lose funds and expenses may go above project proceeds. A constant monitoring of main aspects of a project offers the project team vision into a project's possible failure or success. Moreover, it rec ...
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