solved Reflection on Budget PlanningFinances are a significant factor behind the

Reflection on Budget PlanningFinances are a significant factor behind the approval and success of a project. Project Managers must develop a solid budget plan to achieve the expected results. Providing a thorough cost estimate allows the project managers to manage the project costs efficiently. Tracking the project costs always helps to understand the project’s progress. Effective ways of cost estimating include determination of resource costs, analyzing vendor bids, cost of quality, and reserve budget analysis. (Watt, 2019). As mentioned above, the culmination of the costs helps in understanding the project costs and drafting a budget plan appropriately.The selection of projects also incorporates the financial aspects for the decision-making. Accurate estimates based on the scope and complexity of the project prove the project manager’s understanding of the project requirements and expectations. (Watt, 2019). The estimates tend to change with time as the estimated costs during the earlier stages of the project are adjustable. Different cost estimation techniques include Analogous Estimates, Parametric Estimates, Bottom-Up Estimates, and Activity Based Estimates.Most project managers with less experience adopt the analogous estimation method. This method enables the project managers to perform cost estimations using the information of previous projects with similar financial goals. Darnall-Preston Complexity Index assesses the projects according to the complexity, key components, internal and external attributes. It helps in developing a unique project profile that serves as a benchmark. (Watt, 2019). Managers often match the use of the DPCI projects as a reference. The parametric estimation method considers measurable parameters as a base to estimate the costs. Projects with similar parameters help the project managers to calculate the project costs without any hesitation. Bottom-Up estimation starts with the lowest placed activity in the project schedule and proceeds to the upper-level activities. Whereas Activity Based Estimation identifies the activities and groups them with specific code allocated. The cost of the individual tasks from various resources helps in estimating the accurate costs associated with it.Discussion Based Answer The budgeting process enables the project managers to allocate the resources appropriately and regularly track the project activities. It provides a platform for the project managers to display their skills while engaging with the stakeholders and assisting them in understanding the costs associated with the project. Other activities of a project, like prioritization of tasks, changes in the scope, and resource management, are based on the project’s total budget. The major drawback of budgeting is it delays the project planning process. It usually results in a conflict of interest as the stakeholders tend to disagree over the project costs and the deliverables. The project manager’s responsibility is to resolve these conflicts and engage with the stakeholders to explain the project-related expenses.ReferencesWatt, A. (2019). Project Management. BCcampus Open Education.