Is it that simple?

• No, it certainly is not!

• Two simple but essential principles must be clearly understood:

  1. There must always be a basis for comparison
  
  2. Only future costs can be controlled

• Therefore, PCM involves

  • Careful project planning

    • Especially a WBS extended to the activity level
  • Estimating the costs of the planned resources
  • Converting that estimate to a viable control budget
  • Monitoring expenditures as work proceeds, and
  • Modifying the approach if the findings are not satisfactory

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