1.4 - Identify the basics of project cost control

Question 1

Total Project Cost

Answer 1

• Analogous/Top-Down: managers use experience, historical info from similar projects, and expert judgement to determine the total cost or estimate
  Bottom Up Estimation: estimation the duration or cost of each work package in the WBS, more accurate for estimates, have more time to do estimate

Question 2

Expenditure Tracking

Answer 2

• Funding limit reconciliation is a method of adjusting, spending, scheduling, allocating resources in order to bring expenditures into alignment with budgetary constraints

Question 3

Expenditure Reporting

Answer 3

• Reporting of expenditures

Question 4

Burn Rate

Answer 4

• Rate at which project is using its budget

Question 5

Cost baseline/budget

Answer 5

• Cost Baseline: time-phased budget that will monitor and measure cost performance through the project life cycle
• typically includes budget contingency to accommodate risk of incurring unidentifiable, but normally occurring costs within the defined scope
• Gather WBS, project schedule, cost estimates, risk management plans