Activity 2: Monitor project costs

Activity context:

While the implementation of the project, the following discrepancies were identified:

• The existing budget did not account for 10% of vinyl cladding sheets.
• Expected distribution of the costs over the project timeline:
  • 40% of the cost will be incurred in 1st month of the project o30% in next two months oRemaining 30% in next three months
• The purchases are made in accordance with the expected distribution of costs, i.e.:
  • 40% of vinyl cladding sheets and other materials were purchased in the 1st month o30% of vinyl cladding sheets and other materials were purchased in the next two months o30% of remaining vinyl cladding sheets and other materials 30% in next three months
• The expected revenue will be income will be realised from the client as per the following:
  • 40% in Month 1 o30% in Month 3
  • 30% in Month 6

The projected income and expenditure needs to be monitored at the following intervals:

• Month 1
• Month 3
• Month 6

Description of the activity:

This activity requires you to monitor project costs on the following pre-determined intervals:

• Month 1
• Month 3
• Month 6

To do so, you are required to:

• Collaborate with the stakeholders/team members and complete the steps given below.
• Complete the template/s associated with each step.
• Submit the completed templates to the trainer/assessor.

Step 1: At pre-determined intervals, monitor and compare income and expenditure to the project budget and cost estimates.

• Prepare projected income and expenditure budget for each pre-determined period using Template 2 - Template 4 based on the information given in the case study.
• Prepare actual income and expenditure budget for each pre-determined period using Template 5 - Template 7.
  • Monitor the discrepancies given in the activity content
  • Prepare actual income and expenditure budget for each pre-determined period considering the discrepancies identified from the activity context.
• Monitor and compare the actual income and expenditure against the project budget and established cost estimates at pre-determined intervals.
  • Use established project cost methods, techniques, and tools to identify and report budget variances.
    • Compare the actual income and expenditure budget for each pre-determined period against the projected income and expenditure budget for each pre-determined period.
    • Determine variances between actual and projected income and expenditure budgetfor each pre-determined period.
    • Document the outcomes using budget variance reports (Template 8 - Template 10).

Step 2: Confirm that the cost objectives remain achievable throughout the project life cycle.

• Evaluate the cost objectives given in the case study.
• Analyse the actual income and expenditure for each pre-determined interval against the cost objectives and determine whether the cost objectives are achievable throughout the project life cycle.
• Further, document the following using Template 11.
  • Actual profits for each interval.
  • Total profits oCost objectives
  • Whether the cost objectives were achievable throughout the project?

Step 3: Update cost estimates and budget according to income and expenditure.

• Update the projected income and expenditure budget (Template 2 - Template 4) for each predetermined period based on the actual income and expenditure budget.
• Submit the updated cost estimates and budget to the trainer/assessor.

Template 2: Projected income and expenditure budget determined period 1)

Projected income and expenditure budget (Pre-determined period 1)
Items	Costs
Expenditure:
Income:
Profit:

PLEASE HELP ME FILL THE BLANK IN THIS TABLE