Cost Performance

Cost performance refers to how well a project is managing its expenses relative to the budget. It assesses whether the project is spending more or less than planned for the work completed. If costs are on track or below budget, the project has good cost performance; if costs are higher than planned for the progress made, it indicates poor cost performance. This measurement helps project managers identify financial issues early and make informed decisions to keep the project financially on track. It’s a key component of project performance, ensuring resources are used efficiently.