The estimated costs of the following inputs create this baseline: cost management plan, scope baseline, activity cost estimates, project schedule, basis of estimates, project schedule, resource calendars, risk register, agreements, and organizational process assets. The purpose of the cost baseline is to provide a reference point against which project performance can be monitored and controlled.
1. According to PMBOK 2013, what outputs from the cost management plan create the cost baseline, and what purpose does a cost baseline serve in a project, please explains.
2. Why is it important for project managers to understand and use an earned value management approach to managing costs in projects, please explain?