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‫Cost estimation for zero based budgeting now, this process is fairly simple.

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‫When you're creating a cost estimate, you want to categorize your costs based upon the grouping of

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‫your activities and categories, which should be determined by your company or your department. For this

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‫activity

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‫download the cost, estimate or sheet and write down what potential categories you think your project

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‫would have.

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‫Allocate a budget for each of those categories.

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‫And while creating another column for what those actuals may be towards the end. This cost estimation

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‫process is very good and ideal for the start of the budgeting process.

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‫But the actuals column allows you to revisit at the end of your project and see if you state within

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‫budget to create a variance.

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‫Of course, at the end of your project, if you weren't able to stay within budget, this would be worth

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‫calling out in your meetings, especially if selected to head another project.

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‫Now, before you get started, let's take a look at some categories in which you may group those activities.

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‫Some common categories are infrastructure consulting, resource allocation, third party services vendors,

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‫marketing just to name a few.

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‫Again, download the cost estimate or hand out and try to apply it to a current or recent project.

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‫If you are unable to apply it to a real life scenario.

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‫Create a hypothetical project with potential categories.

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‫You can grasp the concept of cost estimation.