7.3.1 Inputs to Cost Budgeting

.1 Cost estimates. Cost estimates are described in Section 7.2.3.1.

.2 Work breakdown structure. The work breakdown structure (described in Section 5.3.3.1) identifies the project elements to which costs will be allocated.

.3 Project schedule. The project schedule (described in Section 6.4.3.1) includes planned start and expected finish dates for the project components to which costs will be allocated. This information is needed to assign costs to the time period when the cost will be incurred.

.4 Risk management plan. The risk management plan is discussed in Section 11.1.3. In addition to this, the risk management plan often includes cost contingency, which can be determined on the basis of the expected accuracy of the estimate.

7.3.2 Tools and Techniques for Cost Budgeting

.1 Cost estimating tools and techniques. The tools and techniques described in Section 7.2.2 for developing project cost estimates are used to develop budgets for activities or work package as well.

7.3.3 Outputs from Cost Budgeting

.1 Cost baseline. The cost baseline is a time-phased budget that will be used to measure and monitor cost performance on the project. It is developed by summing estimated costs by period and is usually displayed in the form of an S-curve, as illustrated in Figure 7–2.
  Many projects, especially larger ones, may have multiple cost baselines to measure different aspects of cost performance. For example, a spending plan or cash-flow forecast is a cost baseline for measuring disbursements.