take the role of mentor to a new project manager within your organization. This assignment focuses on guidance the mentor provides the new project manager regarding cost.

Cost serves several purposes for an organization: (1) planning and budgeting, (2) assisting in decision making, (3) comparing actual to budget (control), and (4) calculating income generated from operations and projects (score-keeping). Select one these areas and prepare a short document outlining the following items:

• Identify one of the cost purposes listed above.
• Select two of the five cost classifications described in the text: financial statement presentation (cost function): cost behavior, assigning costs to products and services, costs for decision making, and cost of quality (see page 75).
• Describe how knowledge of cost, as described within its classification, is needed to effectively manage costs and improve the success of a project for the stated purpose.