MANAGING SOFTWARE PROJECT COSTS

Effective cost management is crucial for the success of software development projects. Software projects often face budget overruns due to scope creep, inaccurate estimations, resource misallocation, and unforeseen risks. This study explores methodologies, tools, and best practices for managing software project costs, emphasizing planning, monitoring, and control processes. Through a comprehensive literature review, analysis of industry practices, and case study evaluation, the research identifies key strategies for improving cost estimation accuracy, minimizing overruns, and enhancing project value. The findings highlight that integrating project management methodologies such as Agile and PMBOK standards, combined with software cost estimation models like COCOMO II and function point analysis, significantly improves cost control and project predictability.