Cost management is the process of planning and controlling the budget of a project or organization. It involves estimating costs, setting budgets, and monitoring expenses to ensure that financial resources are used efficiently. Effective cost management helps organizations avoid overspending and ensures that projects are completed within their financial limits. Key components of cost management include cost estimation, budgeting, and cost control. Cost estimation involves predicting the expenses required for a project, while budgeting allocates funds to different activities. Cost control monitors actual spending against the budget, allowing for adjustments to keep the project on track financially.