资源描述：
《KXO231 Cost Management Notes》由会员上传分享，免费在线阅读，更多相关内容在学术论文-天天文库。
1、SchoolofEngineering&ICTICTProjectManagementCostManagementNotesProjectCostManagementProjectBudgetsThebudgetofanyspecificprojectisrelatedtothebudgetoftheorganisation.Forthatreason,itsstructurehastofollowthatoftheorganisation.Whenanorganisationisinvolvedinmanyprojectsatthesa
2、metime,thebudgetsoftheseprojectsshouldbecentrallycoordinated.Theneedforthatcoordinationbecomesessentialformatrixorganisations.Thebudgetshouldalsoincludedetailsofexpectedcostsandexpendituresconstrainingitsoperation.Asuccessfulprojectmanageris,therefore,onewhocanachievehis/
3、herprojectgoalswiththeresourcesallocatedtothatproject.Anotherimportantfunctionofagoodbudgetistoidentifyasearlyaspossibleanydeviationsfromplansandtheirsources.Therearethreetypesofbudgetthatareusuallyused.Thefirstisthestrategicbudgetthatdefinesthelong-termactivityofanorgani
4、sation,andit’sgenerallyupdatedannually.Thisstrategicbudget,andbecauseofitsnature,dependsheavilyonestimatesandforecasting.Oncetheprojectsareunderway,asimilarlyimportanttaskistocollectactualdataandcomparethemtothebudgetinordertomonitortheprojectperformance.Budgetreviewhelps
5、controlbothgoalsettingandresourceallocation.Thesecondisamidrange,oratacticalbudgetthatdetailsthestrategicbudgetandusuallycoversaperiodrangingfromonetotwoyears.Updatesaretypicallycarriedonaquarterlybasis.Itdetailsthemonthlyexpendituresinlabour,materials,andoverheadcostsofe
6、achactivity.Thethirdandfinalbudgetisanoperationalonethatdealswithcostsofspecificactivitiesthatarebeingperformed.Itusuallyspansaperiodofatmostoneyearandcoversthecostsofresourcesrequiredforthecompletionofeachactivity.PreparingtheBudgetPreparingabudgetusuallyisperformedinone
7、ofthreeways,atop-downapproach,abottom-upapproach,oraniterativeapproach.Thetop-downapproachstartswiththestrategicbudgetasthisdefinestheorganizationgoalsdevelopedbytopmanagement.Itisthenpasseddowntothefunctionalmanagerstodevelopboththemidrange(tactical)andtheshort-range(ope
8、rational)budgets.Amajorproblemwiththatapproach,however,isthedifficultyintranslatingthestrategicb
