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<p>Project cost is estimated at planning phase when WBS is finalized. Different tools are applied to do budgeting such as bottom up. At the end of planning phase project management plan is formed and a budget is approved for project.</p> <p>When certain individuals have been working for the project way before planning phase is out. Where shall the cost of their effort be charged.</p>
The resources used before the initiation of the project are mostly
1. The Sponsor
2. The Project Manager
Project Manager is not assigned until the project Charter is officially signed. Once that gets signed, all the efforts of Project Manager and other resources used by the Project Manager in estimation are charged to the project budget. These charges come under the project HR Cost of the project subject to contractual obligations and agreements in the project.
Hope this clarifies. In case of any query, please feel free to let me know. Thank you.
Sincerely,
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