上游充通大粤 SHANGHAI JLAO TONG UNIVERSITY Project Budgeting Step 1:Allocating the Total Budgeted Cost Allocating total project costs for the various elements to the appropriate work packages will establish a total budgeted cost(TBC)for each work package. The approaches to establishing the TBC for each work package:top-down and bottom-up. When all budgets are summed,they cannot exceed the TBC
Step 1: Allocating the Total Budgeted Cost Allocating total project costs for the various elements to the appropriate work packages will establish a total budgeted cost (TBC) for each work package. The approaches to establishing the TBC for each work package: top-down and bottom-up. When all budgets are summed, they cannot exceed the TBC. Project Budgeting
上游充通大粤 SHANGHAI JLAO TONG UNIVERSITY Project Budgeting Step 2:Developing the Cumulative Budgeted Cost The second step is to distribute each TBC over the duration of its work package. A cost is determined for each period. The cumulative budgeted cost(CBC)is the amount that was budgeted to accomplish the work that was scheduled to be performed up to that point in time. The CBC is the baseline that will be used in analyzing the cost performance of the project
Step 2: Developing the Cumulative Budgeted Cost The second step is to distribute each TBC over the duration of its work package. A cost is determined for each period. The cumulative budgeted cost (CBC) is the amount that was budgeted to accomplish the work that was scheduled to be performed up to that point in time. The CBC is the baseline that will be used in analyzing the cost performance of the project. Project Budgeting