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Definition: The cost baseline is a time-phased budget that will be used to measure and monitor cost performance on the project. It is developed by summing estimated costs by period and is usually displayed in the form of an S-curve.
Many projects, especially larger ones, may have multiple cost baselines to measure different aspects of cost performance. For example, a spending plan or cash flow forecast is a cost baseline for measuring disbursements.
Acceptance Level: Generally accepted
Alternative or Related Terms: Baseline; schedule baseline; performance measurement baseline
Application Areas/Intended Uses: A cost baseline is a key input into the cost control process.
Chief Advantages: A baseline represents the originally approved plan for costs for a project, work package, or activity, plus or minus approved changes in scope.
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