BSBPMG412 Apply Project Cost Management Techniques: Learner Workbook (Summative V1.1)
BSBPMG412 Apply Project Cost Management Techniques: Learner Workbook (Summative V1.1)
BSBPMG412 Apply Project Cost Management Techniques: Learner Workbook (Summative V1.1)
This unit describes the skills and knowledge required to assist in producing a project budget, to
monitor project expenditure and contributes to cost finalisation processes.
It applies to individuals who are project practitioners working in a project support role.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of
publication.
Please refer to BSBPMG412 Learner Guide as provided at the beginning of you first session (or ask
your trainer if haven’t received)
Assessment instructions
Overview
Prior to commencing the assessments, your trainer/assessor will explain each assessment task and
the terms and conditions relating to the submission of your assessment task. Please consult with
your trainer/assessor if you are unsure of any questions. It is important that you understand and
adhere to the terms and conditions and address fully each assessment task. If any assessment task is
not fully addressed, then your assessment task will be returned to you for resubmission. Your
trainer/assessor will remain available to support you throughout the assessment process.
Written work
Assessment tasks are used to measure your understanding and underpinning skills and knowledge of
the overall unit of competency. When undertaking any written assessment tasks, please ensure that
you address the following criteria:
Your assessment tasks are well presented, well referenced and word processed
Your assessment tasks include your full legal name on each and every page.
Active participation
It is a condition of enrolment that you actively participate in your studies. Active participation is
completing all the assessment tasks on time.
Assessments are to be conducted in an environment which is safe for you and others. Moreover, you
will be given access to workplace documentation, materials, and case studies. Specific Assessment
conditions for each assessment can be found in each assessment’s details. If you feel that you
require some specific materials for the assignment, you may ask your trainer/assessor for assistance.
Assessor Requirements:
All the trainers/assessors must satisfy NVR/AQTF requirements. The details of these requirements
are available at the following URL:
https://www.asqa.gov.au/news-publications/publications/fact-sheets/meeting-
trainer-and-assessor-requirements
Plagiarism
Plagiarism is taking and using someone else's thoughts, writings or inventions and representing them
as your own. Plagiarism is a serious act and may result in a learner’s exclusion from a course. When
you have any doubts about including the work of other authors in your assessment, please consult
your trainer/assessor. The following list outlines some of the activities for which a learner can be
accused of plagiarism:
If it is identified that you have plagiarised within your assessment, then a meeting will be organised
to discuss this with you, and further action may be taken accordingly.
Collusion
Collusion is the presentation by a learner of an assignment as their own that is, in fact, the result in
whole or in part of unauthorised collaboration with another person or persons. Collusion involves
the cooperation of two or more learners in plagiarism or other forms of academic misconduct and,
as such, both parties are subject to disciplinary action. Collusion or copying from other learners is
not permitted and will result in a “0” grade and NYC.
Assessments must be typed using document software such as (or similar to) MS Office. Handwritten
assessments will not be accepted (unless, prior written confirmation is provided by the
trainer/assessor to confirm).
Once the learner has satisfactorily completed all the tasks for this module the learner will be
awarded “Competent” (C) or “Not yet Competent” (NYC) for the relevant unit of competency.
If you are deemed “Not Yet Competent” you will be provided with feedback from your assessor and
will be given another chance to resubmit your assessment task(s). If you are still deemed as “Not Yet
Competent” you will be required to re-enrol in the unit of competency.
Reassessment
Students who receive a ‘NS’ for this assessment task may re-submit the assessment twice at free of
charge. If the student still does not pass or obtain satisfactory result in the first re-sit, the student
must re-sit/resubmit the assessment. If the student still does not pass or obtain ‘Competent’ for the
Unit of Competency, he/she must enrol in the entire unit and pay a repeat unit fee of $300 per unit.
If you fail to complete this assessment by the due date, your Assessor will record this information in
the comments section of the cover sheet of the Assessment Tool. Student will be marked NS for this
assessment task. (Unless prior approval from your assessor has been confirmed for late
assessments) Student must (a) notify the trainer and/or assessor in writing (including the reason) 24
hours prior to the assessment to extend the due date and/or (b) supply a doctor’s certificate within
24 hours after the initial assessment date in order to not have a Not Satisfactory mark for this
assessment.
A maximum of 3 attempts for assessments are allowed, each ‘Not Satisfactory’ attempt will be
reviewed by the Assessor and areas to focus on for further study will be recommended. If after the
3rd attempt the student still cannot complete the assessment task satisfactorily, the student will
be required to repeat the unit and bear the re-enrolment costs and the course duration may be
affected.
To meet the needs of all learners’, adjustments can be made to the way assessments are conducted
but not to the requirements of the assessment. The purpose of these adjustments is to enhance
fairness and flexibility so that the specific needs of students can be met. For details assessor needs
to refer P03_ Assessment Policy and Guidelines and P01_Access & Equity Policy.
“In the case that the tool may need adapting to meet specific needs of students, your trainer may
provide extra support, allow extra time and/or provide the student with picture cues to aid with
assessment.”
Reasonable Adjustment
Yes
No
Confidentiality
We will treat anything, including information about your job, workplace, employer, with strict
confidence, in accordance with the law. However, you are responsible for ensuring that you do not
provide us with anything regarding any third party including your employer, colleagues and others,
that they do not consent to the disclosure of. While we may ask you to provide information or
details about aspects of your employer and workplace, you are responsible for obtaining necessary
consents and ensuring that privacy rights and confidentiality obligations are not breached by you in
supplying us with such information.
For more detail please refer to P31_Complaints and Appeal Policy (http://cmi.vic.edu.au/wp-
content/uploads/pdf/policy/Complaint-and-Appeal-Policy.pdf)
Special needs
Candidates with special needs should notify their trainer/assessor to request any required
adjustments as soon as possible. This will enable the trainer/assessor to address the identified needs
immediately.
The assessment activities in this workbook assess aspects of all the elements, performance criteria,
skills and knowledge and performance requirements of the unit of competency.
To demonstrate competence in this unit you must undertake all activities in this workbook and have
them deemed satisfactory by the assessor. If you do not answer some questions or perform certain
tasks, and therefore you are deemed to be Not Yet Competent, your trainer/assessor may ask you
supplementary questions to determine your competence. Once you have demonstrated the
required level of performance, you will be deemed competent in this unit.
Should you still be deemed Not Yet Competent, you will have the opportunity to resubmit your
assessments or appeal the result.
As part of the assessment process, all learners must abide by any relevant assessment policies as
provided during induction.
If you feel you are not yet ready to be assessed or that this assessment is unfair, please contact your
assessor to discuss your options. You have the right to formally appeal any outcome and, if you wish
to do so, discuss this with your trainer/assessor.
Name: _____________________________________________________________
Address: _____________________________________________________________
Email: _____________________________________________________________
Employer: _____________________________________________________________
Declaration
I declare that no part of this assessment has been copied from another person’s work with the
exception of where I have listed or referenced documents or work and that no part of this
assessment has been written for me by another person. I also understand the assessment
instructions and requirements and consent to being assessed.
Signed: ____________________________________________________________
Date: ____________________________________________________________
If activities have been completed as part of a small group or in pairs, details of the learners
involved should be provided below:
This activity workbook has been completed by the following persons and we acknowledge that it
was a fair team effort where everyone contributed equally to the work completed. We declare that
no part of this assessment has been copied from another person’s work with the exception of where
we have listed or referenced documents or work and that no part of this assessment has been
written for us by another person.
Learner 1: ____________________________________________________________
Signed: ____________________________________________________________
Learner 2: ____________________________________________________________
Signed: ____________________________________________________________
Learner 3: ____________________________________________________________
Signed: ____________________________________________________________
It will demonstrate all of the skills required for this unit of competency – your assessor will provide
further instructions to you, if necessary.
If necessary, for the activities, you should attach completed written answers, portfolios or any
evidence of competency to this workbook.
MS word document (or any open source DOC file) using easily readable font like time new
roman/Ariel etc, font size not less than 11.
A signed observation by the assessor will need to be included in this activity as proof of
completion.
Reading
Applies appropriate strategies to construct meaning from complex texts
Writing
Prepares reports and reviews matching writing style to purpose and audience
Oral communication
Uses clear language and appropriate features to convey and discuss cost
management issues
Uses active listening and questioning to check understanding
Numeracy
Extracts and evaluates mathematical information embedded in a range of tasks and
texts
Answer the activity in as much detail as possible, considering your organisational requirements.
1. Over the course of a project, or over a period of time as designated to you by your assessor,
show that you can apply appropriate strategies to construct meaning from complex texts.
In order to construct meaning from complex texts, you need to be able to understand the main
strategies and objectives that you need to use and achieve.
Once you know where you wanna get (Objectives) and how (strategies) you will need to get all the
relevant data and material in your reach. After you study all this material you will have to be able to
construct meaning from all this complex texts
2. Over the course of a project, or over a period of time as designated to you by your assessor,
prepare necessary reports and reviews, ensuring that your writing style matches the purpose
and audience of the document.
When adjustments and allowances have been made for a project’s budget, you will likely have to
report on the progress of the project as a whole or the elements of the project that concern the
adjustment; this is to determine whether the change was justified and to manage any additional
variances that may occur. By implementing a change and monitoring the operation of the project
after this point, you can assess how successful the change and management was, thus developing
your cost-management processes and strategies.
Reporting on the progress throughout the project’s life cycle will enable you to determine whether
further changes need to be made and will assess the suitability and achievability of the cost
outcomes.
You may have to report this information to the project manager or other member of personnel
responsible for the budget and cost objectives.
Once the project budget baseline has been established, the actual income and expenditure
associated with the project should be measured at predetermined intervals in order to measure how
the project is performing, in relation to the budget and the income and outcome forecasts.
You will need to assess the situation and adhere to organisational procedures and requirements
when communicating your variation reports; this is to ensure that the recipient receives the report
at the right time in the right format; a project manager who is expecting a phone call about an
identified budget variation will likely not be checking his emails in anticipation.
3. Over the course of a project, or over a period of time as designated to you by your assessor,
show that you can:
Use clear language and appropriate features to convey and discuss cost management
issues
Use active listening and questioning to check understanding
Use appropriate communication practices in a range of work contexts
Collaborate and cooperate with others to achieve shared goals
Listening is a conscious activity which requires attention. Rather than waiting to speak, you need to
listen attentively to fully understand the other person. Remember, there is no point in asking a
question if you do not intend to listen carefully to the answer! Listening fully - or actively means
putting everything else out of your mind and acknowledging the other person so they have feedback
that you are listening properly and valuing what they have to say1 . Understanding and valuing does
not mean agreeing; active listening is particularly valuable in situations of conflict or disagreement
where if the other party feels you understand their viewpoint, an atmosphere of cooperation can be
created which increases the possibility of resolving the conflict.
Extract and evaluate mathematical information embedded in a range of tasks and texts
Use a range of informal and formal oral and written mathematical language and symbols
to communicate mathematically
Reduce, reuse and recycle (R3) are the three essential components of environmentally-responsible
consumer behavior. R3 is sometimes called the waste hierarchy. Recover, which is the last R, refers
to the practice of putting waste products to use. For example, decomposing garbage produces
methane gas (one of the greenhouse gases), which some landfill sites recover and burn for energy
rather than letting it dissipate.In your mathematics writing, you will be communicating to the reader
why and how you arrive at asolution. You will also want to convince your reader that your particular
reasons and your particular means to the solution are correct. A good mathematical project not only
should provide clear explanations, but should also be able to persuade a sceptical.
5. Over the course of a project, or over a period of time as designated to you by your assessor,
show that you can:
➢ Recognises and follows protocols that must be respected and maintained
-Developing a budget
Monitor income and expenditure against project budget baseline at predetermined intervals
Identify and report variations in budget using established project cost methods, techniques and
tools
Implement action and report progress to ensure cost objectives remain achievable throughout
project life cycle
Assist in finalisation and transfer of financial assets, liabilities and records to relevant parties
Assist in review of project outcomes through use of project cost records to determine
effectiveness of cost-management processes
Document cost-management lessons learned for application in future projects
Use IT technologies, softwares and hardwares to complete the routine tasks with more ease and less
error.
Learner’s name
Assessor’s name
Unit of Competence
(Code and Title)
Date(s) of assessment
Has the activity been answered and performed fully, as required to assess the Yes No
competency of the learner? (Please circle)
Has sufficient evidence and information been provided by the learner for the Yes No
activity? (Please circle)
Comments
The learner’s
Not yet satisfactory Satisfactory
performance was:
Feedback to learner:
Learner’s signature
MS word document (or any open source DOC file) using easily readable font like time new
roman/Ariel etc, font size not less than 11.
The answers to the following questions will enable you to demonstrate your knowledge of:
Answer each question in as much detail as possible, considering your organisational requirements
for each one.
1. Explain budgeting processes and their relationship to project life cycle in no more than 500
words.
Cost management is concerned with the process of planning and controlling the budget of a project
or business. It includes activities such as planning, estimating, budgeting, financing, funding,
managing, and controlling costs so that the project can be completed within the approved budget.
Cost management covers the full life cycle of a project from the initial planning phase towards
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CRICOS Provider Code 03351G RTO No. 40669
Learner Activities Section A-Section C (Summative) BSBMPG412_V1.1
Page 17 of 34
measuring the actual cost performance and project completion. This article will explain the different
steps or processes in Project Cost Management, in line with methods such as the PMBOK.
Dedicated cost control software tools can be valuable to define cost control procedures, track and
approve changes and apply analysis. Furthermore, reporting can be enhanced and simplified which
makes it easier to inform all stakeholders involved in the project.
2. Explain how to apply cost management tools and techniques throughout a project in no more
than 500 words.
Experience with Similar Projects: The less experience you have with similar projects, the
greater the uncertainty. If you've managed similar projects, you will be able to better
estimate the costs of the project.
Planning Horizon: The longer the planning horizon, the greater the uncertainty. The planning
horizon you are considering may be the whole project or just a certain phase. Either way,
you will be able to better estimate costs for the time periods that are closer to the present.
Learner’s name
Assessor’s name
Unit of Competence
(Code and Title)
Date(s) of assessment
Has the activity been answered and performed fully, as required to assess the Yes No
competency of the learner? (Please circle)
Has sufficient evidence and information been provided by the learner for the Yes No
activity? (Please circle)
Comments
The learner’s
Not yet satisfactory Satisfactory
performance was:
Feedback to learner:
Learner’s signature
Assessor’s signature
Internet Access.
MS word document (or any open source DOC file) using easily readable font like time new
roman/Ariel etc, font size not less than 11.
A signed observation by the assessor will need to be included in this activity as proof of
completion.
This activity will enable you to demonstrate the following performance evidence:
Answer the activity in as much detail as possible, considering your organisational requirements.
1. For one project you are involved with or a fictitious project as outlined to you by your
assessor, produce a project budget. Attach a copy of this to your workbook.
Malvern Institute Pty Ltd trading as Central Melbourne Institute
CRICOS Provider Code 03351G RTO No. 40669
Learner Activities Section A-Section C (Summative) BSBMPG412_V1.1
Page 22 of 34
Cost Management in project plan
A cost management plan for a project, which includes:
o Units of measure
o Level of precision
o Level of accuracy
o Organisation cost management procedures to be followed including roles and
o responsibilities
o Control thresholds
o Rules of performance measurement
o Reporting formats
Process descriptions (these could include any two of the following and must be step by step
including who is involved and when as well as a description of how this will help you monitor
actual vs. budgeted expenditure).
o Approval processes
o Financial authorisations and delegated authority
o Communication and reporting processes
o Invoice procedures
Organisational chart of account links (if applicable)
Be comfortable tracing the cost flows in a job-order environment. (This would include the various
accounts involved in the process and how these accounts are increased and/or decreased.) Once
again, know your cost flows.
It is now Tuesday afternoon at 5pm and you are having a scheduled project meeting. Project
XYZ’s Planned Value is $250 as 50% of task 3 was planned to have been completed by now.
Now at the project meeting you we learn the following work has been completed and the
cost incurred for the work done is also in the table below:
D $1,440 0% 0% $1,296
For each project task, calculate the Earned Value, and for the total project, calculate
and find values for the grey cells in the table below:
A 50 60 24
B 100 110 44
C 100 30 12
D 0 0 0
2. For one project you are involved with or a fictitious project as outlined to you by your
assessor, demonstrate that you can closely monitor project expenditure. Attach any
documentation relating to this process to your workbook.
schedule variance
schedule performance index
cost variance, and
cost performance index
for the project as a whole (a) and for each item (b)
3a) Earned Value Management Metrics for the Project XYZ as at 5pm Tuesday
Formula
Cost Variance EV - AC 60
3b) Earned Value Management Metrics for each task of Project XYZ as at 5pm Tuesday
A 20 20 60 50
B 40 40 110 60
C 60 60 30 70
D 80 80 0 60
3. For one project you are involved with or a fictitious project as outlined to you by your
assessor, demonstrate that you can finalise project costs and make recommendations for
possible improvements to future projects. Attach any documentation relating to this process
to your workbook.
Scenario A:
Assume that the variances up to now are fairly typical of what we can expect going
forward for the rest of the project.
Calculation Answer= 80
Scenario B:
What if the variances to date have shown that your estimates were so bad that a new
estimate for the remainder of the project (a new baseline) is needed?
Calculation Answer= 70
Scenario C:
Use this approach if the previous variances showed an anomaly, but have now
settled Down
Calculation Answer= 60
Minutes of meeting
We will have inspect in Identify any list of End of Jun 2019 Management team
the organisation on budget and select
budget and stakeholder person to handle
To ensure that all budget
are accurate
08/02/201 Authority, Responsibility, How and who planning and control are Project
9 and Accountability done can be different from one manager
company to another, usualy a bigger
company let more people handle it’s
planning and control function.
Learner’s name
Assessor’s name
Unit of Competence
(Code and Title)
Date(s) of assessment
Has the activity been answered and performed fully, as required to assess the Yes No
competency of the learner? (Please circle)
Has sufficient evidence and information been provided by the learner for the Yes No
activity? (Please circle)
Comments
The learner’s
Not yet satisfactory Satisfactory
performance was:
Feedback to learner:
Learner’s signature
Learner’s name
Assessor’s name
Unit of Competence
(Code and Title)
Date(s) of assessment
Has the learner completed all required assessments to a satisfactory standard? Yes No
(Please circle)
Has sufficient evidence and information been provided by the learner to prove Yes No
their competency across the entire unit? (Please circle)
The learner has been assessed as competent in the elements and performance criteria and the
evidence has been presented as:
Authentic Yes No
(Please circle)
Valid Yes No
(Please circle)
Reliable Yes No
(Please circle)
Current Yes No
(Please circle)
Sufficient Yes No
(Please circle)
Learner’s signature
Assessor’s signature
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