Description
Managing the project budget is an ongoing activity that answers the question: “Are we spending what we expected to spend based on how the project is proceeding?” The goal is to keep costs within the budget estimates. This requires monitoring all costs associated with the project and taking corrective actions when variances occur.

During the Planning Stage an agreed-upon baseline budget is created for the project. The project manager uses this baseline to track expenditures and measure the performance of the project. 

Rationale/Purpose
An essential part of a project manager’s job is to ensure that the project is completed within the approved budget.   

Who is Involved
Project Manager
Project Sponsor

Results
Project Budget is applied, monitored and updated
Product delivered within expected budget
Budget variance report component of the Project Status Report