Chapter 1
Foundations of Project Management
Course: Pmp Test Prep
Subject: Pmp
Chapter: Schedule And Finance Performance Domains 5506 10744
The Finance domain manages a project's money through four processes that move from planning how finances will be handled, to estimating costs, to assembling those estimates into an authorized budget, to monitoring and controlling the money as the work proceeds.
This lesson works through each process — Plan Financial Management, Estimate Costs, Develop Budget, and Monitor and Control Finances — and pays particular attention to the estimation techniques and the financial-control tools, including earned value concepts, that the exam expects you to know.
For the aspiring project manager, the highest-yield content here is the family of estimating techniques (analogous, parametric, bottom-up, multipoint) and the control tools such as the to-complete performance index.
The throughline is that Finance follows the same rhythm as Scope and Schedule — plan, build, then monitor and control — with the added purpose of keeping the project financially viable and steering its money toward value.