The Cost Management knowledge area is focused upon the development and checking of the project costs and begins with a planning process that produces the cost management plan, which then guides the individual cost estimating process and development of the cost baseline. It also provides guidance on monitoring actual versus planned cost performance and managing any changes to the cost baseline.
The Plan Cost Management process focuses on the production of the cost management plan, which is a subsidiary plan of the project management plan.
The Estimate Costs process is a highly iterative process repeated throughout the project that uses a variety of estimating techniques to developed individual activity cost estimates.
The Determine Budget process aggregates the individual activity cost estimates and determines exactly when the costs will be incurred to produce a time-phased project budget, or cost baseline.
The Control Costs process assesses planned cost performance against actual cost performance and forecasts a likely future state by using the earned value management systems. Any changes to the project cost baseline or individual activity cost estimates are managed through the approved change control process.