Which term represents the overall process of tracking and controlling project costs to avoid overruns?

Which term represents the overall process of tracking and controlling project costs to avoid overruns?

• A. Cost Accounting System
• B. Cost Report
• C. Cost Management
• D. Labor Cost Accounting

Answer: (D)

Managing project costs across the full life cycle involves planning, estimating, budgeting, and controlling costs to prevent overruns. This integrated activity is called Cost Management. It covers the steps to plan how costs will be managed, estimate the costs involved, determine the project budget, and then monitor and control costs throughout execution to keep spending within the approved baseline. Tools like variance analysis and earned value management help track performance and forecast final costs so you can take corrective action early. A Cost Accounting System is about the methods and procedures for recording and allocating costs, which is part of cost information but not the entire process of keeping a project on budget. A Cost Report is simply a communication artifact that conveys current cost status. Labor Cost Accounting focuses specifically on labor costs rather than the total cost picture of the project. So the term that captures the overall process of tracking and controlling project costs to avoid overruns is Cost Management.

Managing project costs across the full life cycle involves planning, estimating, budgeting, and controlling costs to prevent overruns. This integrated activity is called Cost Management. It covers the steps to plan how costs will be managed, estimate the costs involved, determine the project budget, and then monitor and control costs throughout execution to keep spending within the approved baseline. Tools like variance analysis and earned value management help track performance and forecast final costs so you can take corrective action early.

A Cost Accounting System is about the methods and procedures for recording and allocating costs, which is part of cost information but not the entire process of keeping a project on budget. A Cost Report is simply a communication artifact that conveys current cost status. Labor Cost Accounting focuses specifically on labor costs rather than the total cost picture of the project. So the term that captures the overall process of tracking and controlling project costs to avoid overruns is Cost Management.