Which is NOT a function of the cost management plan?

Which is NOT a function of the cost management plan?

• A. Estimate costs
• B. Determine project funding contingencies
• C. Determine budget
• D. Control Costs

Answer: (B)

The cost management plan defines how costs will be planned, estimated, budgeted, managed, and controlled throughout the project. It specifies how cost estimates are prepared (level of precision, units, data sources), how the budget is determined (how estimates are aggregated into a cost baseline and funded over time), and how cost performance is monitored and controlled (variance analysis, change control, reporting). It may address reserves to handle uncertainty, such as contingencies for known risks and management reserves for unknown risks. However, deciding how much funding to set aside as contingencies for the project in advance is not a function of the cost management plan itself; that funding decision lies in broader financial planning and risk financing. Therefore, the item describing project funding contingencies is not a function of the cost management plan.

The cost management plan defines how costs will be planned, estimated, budgeted, managed, and controlled throughout the project. It specifies how cost estimates are prepared (level of precision, units, data sources), how the budget is determined (how estimates are aggregated into a cost baseline and funded over time), and how cost performance is monitored and controlled (variance analysis, change control, reporting). It may address reserves to handle uncertainty, such as contingencies for known risks and management reserves for unknown risks. However, deciding how much funding to set aside as contingencies for the project in advance is not a function of the cost management plan itself; that funding decision lies in broader financial planning and risk financing. Therefore, the item describing project funding contingencies is not a function of the cost management plan.