BSBPMG412 94613

BSBPMG412
Apply project cost management

techniques
Learner Workbook (Formative) V1.1
Table of Contents
Table of Contents.............................................................................................................................1
Instructions to Learner.....................................................................................................................2
Application.....................................................................................................................................2
Elements for Competency Demonstration....................................................................................2
Assessment instructions................................................................................................................2
Reasonable Adjustment..................................................................................................................5
Candidate Details.............................................................................................................................7
Assessment – BSBPMG412: Apply project cost management techniques.....................................7
Activities...........................................................................................................................................8
Activity 1A......................................................................................................................................8
Activity 1B......................................................................................................................................9
Activity 1C....................................................................................................................................11
Activity 1D...................................................................................................................................12
Activity 2A....................................................................................................................................14
Activity 2B....................................................................................................................................16
Activity 2C....................................................................................................................................18
Activity 3A....................................................................................................................................20
Activity 3B....................................................................................................................................21
Activity 3C....................................................................................................................................23
Activity 1A to 3C checklist – for assessor.....................................................................................24
Malvern Institute Pty Ltd trading as Central Melbourne Institute

CRICOS Provider Code 03351G RTO No. 40669
Learner Activities 1A to 3C (Formative) BSBMPG412_V1.1 Page 1 of 30
Instructions to Learner
Application
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.
Elements for Competency Demonstration
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:
 Address each question including any sub-points
 Demonstrate that you have researched the topic thoroughly
 Cover the topic in a logical, structured manner
 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.
Assessment Conditions
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:
 Presenting any work by another individual as one's own unintentionally
 Handing in assessments markedly similar to or copied from another learner
 Presenting the work of another individual or group as their own work
 Handing in assessments without the adequate acknowledgement of sources used, including

assessments taken totally or in part from the internet.
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).
Competency outcome
There are two outcomes of assessments: S = Satisfactory and NS = Not Satisfactory (requires more
training and experience).
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.
Additional evidence
If we, at our sole discretion, determine that we require additional or alternative
information/evidence in order to determine competency, you must provide us with such
information/evidence, subject to privacy and confidentiality issues. We retain this right at any time,
including after submission of your assessments.
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.
Fail to complete by due date
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.

Reasonable Adjustment
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
Was reasonable adjustment applied to any of these assessment tasks?
 Yes
 No
If yes, which assessment task was this applied to?
Provide a description of the adjustment applied and explain reasons.
Trainer Signature: date: / /
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.

Assessment appeals process
If you feel that you have been unfairly treated during your assessment, and you are not happy with
your assessment and/or the outcome as a result of that treatment, you have the right to lodge an
appeal. You must first discuss the issue with your trainer/assessor. If you would like to proceed
further with the request after discussions with your trainer/assessor, you need to lodge your appeal
to the course coordinator, in writing, outlining the reason(s) for the appeal.
Recognised prior learning

Candidates will be able to have their previous experience or expertise recognised on request.
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.

Candidate Details
Assessment – BSBPMG412: Apply project cost management techniques
Please complete the following activities and hand in to your trainer/assessor for marking. This forms
part of your assessment for BSBPMG412: Apply project cost management techniques.
Name: _____________________________________________________________
Student ID: _____________________________________________________________
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: ____________________________________________________________
Activities
Complete the following activities individually or in a group (as applicable to the specific activity
and the assessment environment).
Activity 1A
Estimated Time 20 Minutes
Objective To provide you with an opportunity to implement cost-estimating methods
against duration/effort and resource requirements.
Activity Identify three different cost-estimating methods and for each one, create a
short summary of no more than 50 words and explain in no more than 100
words how that method could be used against duration/effort and resource
requirements.
Parametric Estimating: It takes variables from similar projects and applies them
to the current project. For example, in a previous project, we take the cost of
concrete per cubic meter, then calculate the concrete requirement for the
Current project and multiply it with the cost obtained from the previous project.
This will provide the total cost of concrete for your current project.
Bottom-up Estimating: This estimating technique is the most accurate, time-

consuming, and costly for estimating the cost of a project. In this, the cost of
each single activity is determined with the greatest level of detail at the bottom
Level and then rolls up to calculate the total project cost.
Expert Opinion: To estimate the cost, you may contact colleagues for their
knowledge and past experience of working with activities, scheduling, resource
usage, and costs.

Activity 1B
Objective To provide you with an opportunity to determine estimated costs for tasks and
activities and confirm degree of accuracy with relevant stakeholders.
Activity In no more than 500 words, write a scenario that shows how you could
determine the estimated costs for a project by breaking it down into its
component tasks and activities and estimating costs for these.
Your scenario should include how this estimate should be confirmed for
accuracy with a stakeholder and the outcome of this.

Activity 1C
Objective To provide you with an opportunity to communicate cost estimates, where
required, to others to contribute to project budget and cash flow management.
Activity Identify a format of a cost estimate.
 Who would you communicate this to?

To the project manager and then he would show the value to the company
manager to approve or not the project.
 How would you communicate this information? Explain in no more than 50
words.
By email. However, having a meeting with the company manager is the best way
to show him all the details and explain why the project would cost that.

 How does your information contribute to the project budget and cash flow
management? Explain in no more than 50 words.
This will show the expectation of the project to avoid facing unexpected
situations that will increase since you get previous knowledge about other similar
jobs.
Activity 1D
Objective To provide you with an opportunity to contribute to developing cost
management strategies and processes, and providing financial authorisation
within delegated authority.
Activity 1. For one project you are have been or are involved with, explain your role
within that project in no more than 100 words.
Help a snack house to has an increase in number of clients consequently increase
its return. As a project manager specialized in marketing I can help this franchise
to get better and have incredible numbers in its account.
2. How can you contribute to developing cost-management strategies and

processes in relation to this project? Explain in no more than 200 words
First, I will study its clients and all the kinds of snacks it sells and how everything
is made.
You cannot change everything quickly, you must make a survey and see what the
clients think about the snacks. After some studies, you should:
- Open the snack house during busy times. It will avoid you to spend money
while you don’t have enough clients;
- Concentrate the chefs to make a special burger. We need house made
burgers and sauces to be the key of success.
- Change the menu according the season. We cannot have only one menu.
- Sell kids plates and combos to families.
During the study of house made burger and sauces, I will be coming daily until we
find a good taste. After this, I can go weekly and then monthly, when the snack
house should be able to run without supervisor.
3. How can you provide financial authorisation within your role? Explain in no
more than 100 words.
I should be aware with the scope and follow all steps given by the snack house.

Activity 2A
Objective To provide you with an opportunity to monitor income and expenditure against
project budget baseline at predetermined intervals.
Activity 1. Identify an example of a project your organisation could undertake and
outline it briefly in no more than 50 words.
Projects manager has the overall responsibility to establish, plan, and execute all
the Buildings Stabilization/Deactivation subprojects. The manager will provide
direction, mentoring, and training to all subproject managers. The manager also
will be responsible for maintaining schedule performance and monitoring of cost
control initiatives for the subproject activities within the buildings. In addition, the
manager will ensure the availability of trained and qualified personnel for
conducting subproject activities.
2. At what points would income and expenditure levels associated with the
project identified in question one be examined? List at least three.
The budget baseline is the benchmark that determines the ideal level of cost
that the project should require; this is determined through the planning and
Estimation processes and procedures covered.
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.
3. In no more than 100 words, explain the purpose of monitoring income and
expenditure against a project’s budget baseline at predetermined intervals.
It is effective because you will measure the project’s income and expenditure,
you will need to access the relevant sales data and expenditure records. The
income data you use may come predominantly from till roll data and sales
figures, but this will depend upon the nature of your business and the way you
record your sales, as well as what information you have. The expenditure
associated with a project falls into two main categories, the cost of the project
and the cost of interruption to the business’ operation. For example, if the
project was to promote a new line in the store, clothing, you would measure
the income associated with the project by examining and analysing the clothing
sales figures and comparing actual sales to projected and forecasted sales in
order to determine whether the project is earning as expected. The project
baseline will determine an acceptable range of values.
If sales are below what is required or expected, this can have a negative impact
on the project’s budget, as the income may be offset against the cost and
expenditure of the project; if the income is relied upon to fund and / or justify
the project, then the project may stall, be downgraded or cancelled.

Activity 2B
Objective To provide you with an opportunity to identify and report variations in budget
using established project cost methods, techniques and tools.
Activity 1. List three reasons why a project may experience variations in its budget.
Stakeholder Changes Their Mind
A stakeholder could change their mind at any point in the project. And they
frequently do! If their new opinion relates to the format or quality of the output
of the project then you’ll be making a change to incorporate their new ideas.
Essentially, this is a change to requirements.
Regulatory Change
When new regulations or legislation is introduced this can result in a change to
project scope or requirements. You need to make sure that your business remains
compliant and legally allowed to trade. This could happen at any point in the
project life cycle so the earlier you can be aware of upcoming changes the better,
as generally you will get some notice before new rules come into effect.
Business Strategy Change

A change in direction could result in changes to the scope or requirements on
your project. this could happen at any point in the project: business strategies are
often under constant review for competitive threats, even if in principle the
organisation has published a three- or five-year strategic plan
2. List the five things that influence how you may choose to report budget
variations.
 Labor
 Materials
 Flexible Budget
 Cost and Efficiency
 Verification
3. Give two different examples of how you could identify and report a
variation in a project budget. Explain each in no more than 100 words.
Understanding why variations occurred is important for two main reasons; it

allows you to justify the variation and it allows you to learn from the event and
develop your cost-management techniques and processes. It is important to
identify and report variations as soon as possible; this is so that negative
consequences and effects can be tackled and minimised as far as possible.
Positive variations should also be reported so that any appropriate actions can
be taken promptly. 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.

Activity 2C
Objective To provide you with an opportunity to implement action and report progress to
ensure cost objectives remain achievable throughout project life cycle.
Activity 1. Briefly, outline an example project in no more than 50 words and give an
example of a cost objective that could be applied to the project.
Cost object is a term used in budgeting, planning, and accounting, referring

simply to any item associated with a cost figure of its own.
The term applies to a very wide range of items whose costs maybe found

by estimation, by direct measurement, or by allocation or apportionment. Cost
object items may include, for instance:
 Services (such as consulting services with a specified cost).

 Goods (such as raw materials for produing products).
 Products (for example, a product whose costs of design, development, and
production are specified).
 Projects (for example, a product design project).
 Customers (customers when the cost of selling or service delivery is
known).
 Contracts (such as, a product warranty support contract, when the costs of
contract creation and service delivery are known).
 Resources (for example, fuel for operating vehicles).
 Activities (such as use of a vehicle to deliver goods).
2. How could the cost objective identified in your previous answer be broken
and become unachievable? Explain in no more than 50 words.
When variations and other events occur within the project’s timeframe, you
will need to implement action to ensure that the cost objectives are adjusted
so that they remain achievable throughout the project. Cost objective will be
broken and become unachievable if you will not do the following:
 To motivate staff and keep morale high
 To avoid branding the project as unsuccessful and outside of
the budget
 To practice flexibility and coping mechanisms
 To adapt the budget and the project so that it remains
achievable.
3. Suggest a way in which you could implement action to ensure that this
cost
objective remains achievable.
 Revised budget forecasts
 Under limited guidance and supervision
 Variance management
 Actions within agreed authorisation and limits
 Actions within established organisational framework,
procedures and routines.

Activity 3A
Objective To provide you with an opportunity to assist in finalisation and transfer of
financial assets, liabilities and records to relevant parties.
Activity In no more than 250 words, outline the procedure your organisation would use
to finalise and transfer financial assets, liabilities and records to relevant parties
upon the completion of a project.
After the project is completed, you can use the financial authorization, invoice
distribution and finally the project's budget. In any case, it is always possible to
view and access the bank's financial transfer that can be used as evidence if there
is any equivocation.

Activity 3B
Objective To provide you with an opportunity to assist in review of project outcomes
through use of project cost records to determine effectiveness of cost
management processes.
Activity Give an example of a project in no more than 50 words
Explain in 500 words or less how you would review the project outcomes
through the use of project cost records in order to determine the effectiveness
of cost-management processes.
Note the project’s:
 Estimated budget
 Actual expenditure
 Project outcomes
 Cost records.
You may refer to the example given in section 3.2 of the unit for guidance.
Through project cost records we can check the values entered and removed,
keeping all the information recorded. This makes it possible to carry out cost
verification and validation documentation. So you can see how the actions
occurred, how they were planned, and the effectiveness of the management of
the project.

Activity 3C
Objective To provide you with an opportunity to document cost management lessons
learned for application in future projects.
Activity Identify a lesson learned from an example project and explain how you would
identify it and record it. How can this lesson be applied in future projects? Your
answer should be no more than 200 words.
Correct financial management brings great benefits, generating positive results

and helping strategically in decision making. There are countless benefits that
financial management excellence can bring to projects, but for that, a cautious
costing is needed.
There are many variables in project financial management, mainly because

projects are not static, and requirements changes can greatly change their costs.
The use of the knowledge bank, that is, lessons learned in previous projects, are
extremely useful in helping to measure resources, which are often not evident.
Budgeting is also very important because it predicts how much must be

contributed in the project in a given period in order to achieve its objectives. It is
important to develop a budget based on the goals and objectives evaluated for

the project, this process will help find a focus for the priorities.
Activity 1A to 3C checklist – for assessor

This should be used by the trainer/assessor to document the learner’s skills, knowledge and
performance as relevant to the unit activity. Indicate in the table below if the learner is deemed
satisfactory (S) or not satisfactory (NS) for the activity or if reassessment is required.
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
Provide your comments here:
The learner’s
Not yet satisfactory Satisfactory
performance was:
If not yet satisfactory, date for reassessment:
Feedback to learner:
Learner’s signature
Assessor’s signature


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BSBPMG412

Apply project cost management

Malvern Institute Pty Ltd trading as Central Melbourne Institute

Elements for Competency Demonstration

 Address each question including any sub-points

 Demonstrate that you have researched the topic thoroughly

 Cover the topic in a logical, structured manner

 Presenting any work by another individual as one's own unintentionally

 Handing in assessments markedly similar to or copied from another learner

 Presenting the work of another individual or group as their own work

 Handing in assessments without the adequate acknowledgement of sources used, including

Fail to complete by due date

Malvern Institute Pty Ltd trading as Central Melbourne Institute

Was reasonable adjustment applied to any of these assessment tasks?

If yes, which assessment task was this applied to?

Provide a description of the adjustment applied and explain reasons.

Trainer Signature: date: / /

Malvern Institute Pty Ltd trading as Central Melbourne Institute

Recognised prior learning

Malvern Institute Pty Ltd trading as Central Melbourne Institute

Student ID: _____________________________________________________________

Bottom-up Estimating: This estimating technique is the most accurate, time-

Malvern Institute Pty Ltd trading as Central Melbourne Institute

Malvern Institute Pty Ltd trading as Central Melbourne Institute

 Who would you communicate this to?

Malvern Institute Pty Ltd trading as Central Melbourne Institute

2. How can you contribute to developing cost-management strategies and

Malvern Institute Pty Ltd trading as Central Melbourne Institute

Malvern Institute Pty Ltd trading as Central Melbourne Institute

Business Strategy Change

 Cost and Efficiency

Understanding why variations occurred is important for two main reasons; it

Malvern Institute Pty Ltd trading as Central Melbourne Institute

Cost object is a term used in budgeting, planning, and accounting, referring

The term applies to a very wide range of items whose costs maybe found

Malvern Institute Pty Ltd trading as Central Melbourne Institute

Malvern Institute Pty Ltd trading as Central Melbourne Institute

Malvern Institute Pty Ltd trading as Central Melbourne Institute

Note the project’s:

Malvern Institute Pty Ltd trading as Central Melbourne Institute

Correct financial management brings great benefits, generating positive results

There are many variables in project financial management, mainly because

Budgeting is also very important because it predicts how much must be

Malvern Institute Pty Ltd trading as Central Melbourne Institute

Activity 1A to 3C checklist – for assessor

Provide your comments here:

If not yet satisfactory, date for reassessment:

Malvern Institute Pty Ltd trading as Central Melbourne Institute

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