What is the CBS used for?

The Cost Breakdown Structure (CBS) is a critical tool used in project management to systematically organize and track project costs. It serves as a hierarchical decomposition of all costs associated with a project, allowing project managers to analyze expenses at various levels of granularity.

By employing a CBS, project managers can monitor how funds are allocated and ensure that spending aligns with the project's budget. This organization helps facilitate the tracking of specific cost elements, making it easier to manage financial performance throughout the project lifecycle and to identify areas where cost overruns may occur.

The focus of the CBS on financial aspects directly supports effective cost management and aids in financial reporting, which ultimately contributes to better decision-making regarding resource allocation and project financial health. This is crucial for maintaining control over the project budget and achieving financial objectives.