Cost Baseline Glossary Definition

A Cost Baseline is the approved time-phased budget used to measure and control project cost performance.

It gives project teams a reference point for comparing planned spending with actual and earned value results.

Project managers, sponsors, and project-controls staff use this concept in budget reviews, performance reporting, forecasting, and variance conversations.

Related concepts include Budget, Planned Value, Earned Value, Actual Cost, Cost Variance and Schedule Variance.