Cost Budgeting

• Why am I concerned with Cost Budgeting?

Cost budgeting or setting the cost baseline for a project is very important since it forms the foundation for the measurement of performance in the project.
Ultimately our performance measurement system is going to measure the actual costs of the project in terms of time and quantity and compare that to the planned expenditures in terms of time and quantity.

• What is time value of money?

• The time value of money refers to the fact that money we receive in the future is worth less to us than the money we receive today.