Define Planned Cost Driver
Explanation
Use this activity to define the planned cost driver
for an activity, specifying the source of the planned cost values. Selecting
an appropriate planned cost driver ensures the financial aspects of the
project are accurately calculated and tracked, aligning with project needs
and supporting accurate budgeting. When an activity is created, the default
planned cost driver is set to Connected Objects.
The planned cost driver methods include:
- Connected Objects: Costs and hours are calculated
based on all connected objects.
- Estimated Cost: Costs and hours are derived from
the estimated values.
- Activity Resources: Costs and hours are calculated
using only the activity resources.
- Exclude Activity Resources: Costs and hours from
the connected objects are used, ignoring resource costs and hours.
Prerequisites
- A project with sub projects and activities must exists.
System Effects
- The financial aspects of the project are accurately calculated and
tracked.
- Planned cost serves as the basis for calculating key project
metrics, such as earned value, ensuring accurate performance
measurement.
- Deriving the cost from the most accurate and relevant source is
crucial for monitoring project performance effectively.