7.2 Determine Budget

 

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7.2 Determine Budget The process of aggregating the estimated costs of the project activities or work packages to establish an authorized cost baseline.   Simple Version: Add up all the estimated costs to create project total.
PMI	Agile PMBOK, Agile Difference, Comment
Inputs Activity cost estimates Basis of estimates Scope baseline Project schedule Resource calendars Contracts Organizational process assets   Tools and Techniques Cost aggregation Reserve analysis Expert judgement Historical relationships Funding limit reconciliation   Outputs Cost performance baseline Project funding requirements Project document updates	Inputs Activity cost estimates / Story Estimates Basis of estimates Scope baseline Project schedule Resource calendars Contracts Organizational process assets   Tools and Techniques Cost aggregation Reserve analysis Expert judgement Historical relationships Funding limit reconciliation   Outputs Cost performance baseline Project funding requirements Project document updates   The process of adding all the individual component costs together to create an overall budget. Initially it is unlikely that all the candidate features or stories for the project will be identified. So merely adding the estimates for the known stories together will give an estimate that is unreasonably low.  Initial estimates should be based more on traditional estimation approaches (like expert judgement, comparison to other systems, etc) or calculated from Timeboxed project burn projections if a fixed end date must be met.