Which aspect of project management involves monitoring project costs?

Cost Management is the aspect of project management that focuses on monitoring and controlling project costs. This includes processes that are used to estimate, budget, and control costs to ensure that the project can be completed within the approved budget. Effective cost management helps project managers understand the financial resources needed throughout the life of the project and ensures that expenditures align with the planned budget.

In project management, Cost Management encompasses several key processes, including the estimation of costs, budgeting, and determination of the cost baseline. By closely monitoring costs during the project execution phase, managers can identify variances between planned and actual expenditures, facilitating timely decision-making and adjustments to keep the project on track financially. This proactive approach to managing costs is essential for the overall success of a project, as it directly influences the project’s profitability and viability.