"Budgeting is the process of summarizing the estimated costs of all individual activities or work packages and establishing an approved cost benchmark. The main function of this process is to determine the cost benchmark on which project performance can be monitored and controlled. This process is only carried out once Or only at pre-defined points in the project."
"The project budget includes all funds approved for the implementation of the project, and the cost basis is the approved project budget allocated by time period, including emergency reserves, but not management reserves."
"When the management reserve is used to fund unforeseen work, it is necessary to add the used management reserve to the cost base, which will result in a change in the cost base."
7.3.2 Budgeting: Tools and Techniques
7.3.2.1 Expert judgment
7.3.2.2 Cost summary
"First summarize the cost estimate to the work package in the WBS, and then summarize the work package to the higher level of the WBS (such as the control account), and finally get the total cost of the entire project."
7.3.2.3 Data analysis
7.3.2.4 Review of historical information
7.3.2.5 Balance of Funding Limits
"Funding expenditures should be balanced according to any restrictions on project funds. If differences between the funding limits and planned expenditures are found, the work schedule may need to be adjusted to balance the level of capital expenditures. This can be done in the project schedule Add mandatory dates to achieve."
7.3.2.6 Financing
"Financing means obtaining funds for the project."
7.3.3 Develop a budget: output
7.3.3.1 Cost benchmark
"The cost benchmark is an approved project budget allocated by time period. It does not include any management reserves. It can only be changed through formal change control procedures and used as a basis for comparison with actual results. The cost benchmark is the approval of different schedule activities The sum of your budget."
