A cost baseline is used to measure the:

The correct answer is A. eventual cost of a project. When you have the cost estimates completed, it’s time to prepare the budget. Budgeting is the process of aggregating all the cost estimates and establishing a cost baseline for the project. The cost baseline is the total expected cost for the project. Once approved, it’s used…

Project management concepts

Question

Options

Aeventual cost of a project.
Bincrease in the budget.
Cvariance with the initial budget.
Dinevitable cost overruns.

How the community answered

(58 responses)

A
88% (51)
B
3% (2)
C
2% (1)
D
7% (4)

Explanation

When you have the cost estimates completed, it’s time to prepare the budget. Budgeting is the process of aggregating all the cost estimates and establishing a cost baseline for the project. The cost baseline is the total expected cost for the project. Once approved, it’s used throughout the remainder of the project to measure the overall cost performance.

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#cost baseline#budget measurement#performance measurement#cost management

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