Finance

  What Is Inflation? Inflation reduces the purchasing power of money (purchasing power, the quantity of goods bought by an amount of money).  Inflation reduces the purchasing power of money in a growing economy by triggering rising prices of consumer goods and services. `A slow and steady rising of prices caused by an inflation rate of at about 2% is okay. But when the rate rises faster, sometimes to double digits, then it can have a negative impact on personal financial management. For instance, as a consumer, you would be time consuming to compare and determine best prices to get goods and services at a given moment. How is inflation measured? Inflation is measured by using the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCI) tools.  The Consumer Price Index tracks prices for individual goods and services which households are buying.  The Personal Consumption Expenditures, PCE, tracks changes in prices of consumer goods and services which ...

? Thorough project management knowledge, skills and techniques are necessary for the successful execution of a project from iniatiation to closing.  One of the tools for a successful  project execution is an effective project cost management.knowledge. Project Cost Management includes necessary techniques or processes for the completion of projects within approved budget. These processes are estimation of costs, determination of budget and control of costs. 1. Estimation of costs - The establishment of monetary resources required to successfully complete a project is crucial. Some of the techniques used to estimate costs include  a. parametric estimating - the parametric cost estimates are calculated by using the relationship between historical data and other variables such as cost, budget and duration. b. reserve analysis - cost estimates sometimes include reserve analysis- this analysis is relevant to cost estimates that contain cost uncertainty.  The uncertainty i...