---
ref_id: PR14
ref_type: Process
ref_name: "Plan Cost Management"
version: "1.0.0"
status: Active
pmbok8_source: "PMBOK8 Guide §2.4"
companion_ref_shortcode: PG-APG-5.11
related_skills:
  - SKL-03-07
related_artifacts:
  - A16
file_path: "reference/processes/PR14-plan-cost-management.md"
---
# PR14 — Plan Cost Management

## Classification
- **Performance Domain:** Finance
- **Process Group:** Planning
- **PMBOK 8 Reference:** Section 2.4
- **Process Groups Practice Guide Reference:** Section 5.11

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## Purpose
Plan Cost Management is the process of defining how the project costs will be estimated, budgeted, managed, monitored, and controlled. The key benefit is that it provides guidance and direction on how project costs will be managed throughout the project.

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## Inputs
- Project charter
- Project management plan (schedule management plan, risk management plan)
- Enterprise environmental factors
- Organizational process assets

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## Tools & Techniques
- Expert judgment
- Data analysis (alternatives analysis)
- Meetings

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## Outputs
- Cost management plan

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## Key Concepts
- Cost management planning occurs early in project planning and sets the framework for all cost management processes.
- The cost management plan defines: units of measure, level of precision, level of accuracy, organizational procedures links (WBS/control accounts), control thresholds, EVM rules of performance measurement, and reporting formats.
- CapEx vs. OpEx distinction is relevant for financial constraint planning.
- Budget can be allocated quarterly in agile approaches for flexibility.

---

## Source Traceability
- PMBOK 8: Section 2.4
- Process Groups Practice Guide: Section 5.11

---

## Cross-References

| Related Item | Type | Relationship |
|---|---|---|
| A16 | Artifact | Primary artifact produced or updated by this process |
| SKL-03-07 | Skill | Skill that executes this process |

## Practitioner Notes

Practitioners executing this process should seek answers to the following questions:
1. Are cost management policies aligned with organizational financial governance?
2. Is the cost measurement baseline (EVM) approach documented?
3. Are funding constraints and financing structures reflected in the plan?
4. Are cost reporting thresholds and escalation triggers defined?
5. Is the cost management plan integrated with the schedule and risk management plans?

## Change Log

| Version | Date | Description | Author |
|---|---|---|---|
| 1.0.1 | 2026-06-03 | Added Cross-References, Practitioner Notes, and Change Log sections (F-12 Batch 4) | PMO Director |
