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.