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Project Management & Agile · Intermediate

Determine Budget

Process of aggregating estimated costs of activities or work packages to establish an authorized cost baseline.

Definition

Steps include cost aggregation, reserve analysis, historical review, and funding limit reconciliation. Outputs are the cost baseline and project funding requirements.

Example

Work package costs are rolled up to control accounts, contingency is added, and funding is phased by quarter.

Exam tip

Cost baseline includes contingency reserves but not management reserves.

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