COST MANAGEMENT PLAN Version Number: 1.0 Version Date: Insert other necessary information including student names, numbers, tutor etc. Notes to the Author [This document is a template of a Quality Management Plan document for a project. The template includes instructions to the author and fields that should be replaced with the values specific to the project. It has been tailored to suit the assessment. • Blue italicized text provides an explanation of what should be included for each section. Remove this text prior to submission. Where there are two options for you to decide between, revert the option you are keeping to black and remove the other. TABLE OF CONTENTS 1 INTRODUCTION 3 1.1 Application of plan 3 2 COST DESCRIPTORS 3 2.1 Units of Measure 3 2.2 Level of Precision 3 2.3 Level of Accuracy 3 3 ORGANISATIONAL PROCEDURES LINKS 3 4 CONTROL THRESHOLDS 3 5 RULES OF PERFORMANCE MEASUREMENT 3 5.1 Cost Management Measurement 3 5.2 Reporting 4 COST MANAGEMENT PLAN APPROVAL 5 REFERENCES 6 BIBLIOGRAPHY 6 APPENDIX C: KEY TERMS 7 1 INTRODUCTION 1.1 APPLICATION OF PLAN This Cost Management Plan is applicable for the project of the Mooloolaba Beach Holiday Park. It would come up with a better facility of the resorts for the purpose of serving the guests visiting there in a better way. 2 COST DESCRIPTORS 2.1 UNITS OF MEASURE The value of the costs and expenses would be expressed in Australian Dollar taking in account of per unit cost of the direct labor and direct materials. Again the volume of the concrete would be measured in terms of MPa on the likes of cubic meters (Leach, 2014). 2.2 LEVEL OF PRECISION The costing mechanism would be taken on a wholesome basis keeping aside the decimal system like AUD 592 would be represented as AUD 600 and 1.79 meters by rounding off to its nearest whole number of 2 meters. 2.3 LEVEL OF ACCURACY The standard range is considered as +/- 5% for the cost and measurement element like AUD 200 could be represented as AUD 205 for its standard cost valuation (Rosenau & Githens, 2011). In the same way its working hours to be rounded off to its adjacent hours. 3 ORGANISATIONAL PROCEDURES LINKS The funding requirement would take into consideration the cost allocation process and various expenditures for the purpose of the successful completion of the Mooloolaba Beach Holiday Park (Heldman, 2013). 4 CONTROL THRESHOLDS The control threshold would be adjusted through SPI or CPI in the range of 0.8 to 1.2 and the same would be updated as per the requirement of the project. 5 RULES OF PERFORMANCE MEASUREMENT 5.1 COST MANAGEMENT MEASUREMENT It would take the relevance of the Earned Value estimations like the Schedule Variance (SV), Cost Variance (CV), Scheduled Performance Index (SPI) and Cost Performance Index (CPI). SV estimates the calendar execution of the project considering the element of Earned Value and Planned Value (Rosenau & Githens, 2011). CV is the spending process of the project considering the Actual Costs and the Earned Value. SPI measures the advances forwarded to the successful executions of the stipulations arranged in the process (Leach, 2014). CPI measures expectation of the work to be contemplated in contrast to the real cost as determined by EV/AC. 5.2 REPORTING The reporting aspect has taken the desired relevance of the budgeted scheduled variance for the purpose of presenting the financials of the organization as reflected through the cost baseline graph to have a simplistic understanding of it. Cost Management Plan Approval The undersigned acknowledge that they have reviewed the Cost Management Plan and agree with the information presented within this document. Changes to this Cost Management Plan will be coordinated with, and approved by, the undersigned, or their designated representatives. [HINT – there are at least four signatures required, three sit on the same governance structure.] Signature: Date: Print Name: Title: Role: Signature: Date: Print Name: Title: Role: Signature: Date: Print Name: Title: Role: Signature: Date: Print Name: Title: Role: REFERENCES BIBLIOGRAPHY Heldman, K., 2013. PMP: project management professional exam study guide. London: John Wiley & Sons. Leach, L. P., 2014. Critical chain project management. London: Artech House. Rosenau, M. D. & Githens, G. D., 2011. Successful project management: a step-by-step approach with practical examples. London: John Wiley & Sons. APPENDIX C: KEY TERMS The following table provides definitions and explanations for terms and acronyms relevant to the content presented within this document. Term Definition [Insert Term]