Topic
Managing Costs in I.T Projects
Instructions
Write a two-to three-page essay explaining what information would be contained in an IT project cost management plan. Access the Online Library and locate at least one article that relates to an IT project cost management plan. Use the basic principles of project cost management to include the following topics and terms:
- tangible and intangible costs and benefits,
- direct and indirect costs,
- reserves, and
- life cycle support costs.
All sources used must be referenced; paraphrased and quoted material must have accompanying citations. All references and citations used must be in APA style, and a title page should be included.
Answer Preview
In case, the office for managing the cost does not have a Project Management Information System (PMIS), it is vital to establish Cost Accounts (CA) during the fourth phase of the Work Breakdown Structure (WBS). It is crucial for the offices without (PMIS) to assess the level of WBS that would enable efficient management of the I.T project costs. As the project does down the WBS, the details of the cost management processes increase, it is significant to strike a balance between the levels at which the project manager wants to manage the costs and the amount of efforts required at the stage. When the cost management process is gritty, it would call for wide-ranging tasks to manage the costs (Gido, Clements & Baker, 2017). The Control Accounts (CA) would undergo calculations to measure and manage the I.T project’s monetary performance however; the work pages would provide a comprehensive elaboration of cost estimates for the activities. The accuracy for the cost management is certain when the project manager creates the CA’s at the fourth phase of the WBS and assigns the work credit at the package stage.
Word Count: 1000