Acronyms Flashcards
AOA
Activity on Arrow (AOA)
A type of graphical project network diagram where schedule activities are represented by lines with arrows. The lines are connected by notes, usually represented by circles. AOA diagrams are seldom used in practice today and have been replaced by AON.
AON
Activity on Node (AON)
A type of graphical project network diagram where schedule activities are represented by nodes (usually rectangles), and their inter dependencies are represented by lines with arrows.
AC
Actual Cost (AC) Also know as Actual Cost of Work Performed (ACWP). A term used in earned value management. Actual Cost represents the amount that has been spent by the project up to a point in time. It is often contrasted with earned value to show the difference between the amount of value earned on the project (represented by the earned value) and what was spent to earn that value (represented by the actual cost).
ACWP
Actual Cost of Work Performed (ACWP)Actual Cost of Work Performed represents the amount that has been spent by the project up to a point in time. It is often contrasted with earned value to show the difference between the amount of value earned on the project (represented by the earned value) and what was spent to earn that value (represented by the actual cost).
BAC
Budgeted at Completion (BAC) The planned (budgeted) amount for the total project. The BAC represents what the project should cost at the point it is completed if everything proceeds according to plan.
BCWP
Budgeted Cost of Work Performed (BCWP)
Also known as Earned Value. Earned Value is a cost accounting term representing the value of the work that has actually been completed up to a point in time. Earned Value (EV) is different from Actual Cost (AC) because EV measures what was actually done and how much that is worth, which is different from what has been spent. For instance, if the project spent $100,000 but got $200,000 of value out of that, the EV would be $200,000, while the AC would only be $100,000.
BCWS
Budgeted Cost of Work Scheduled (BCWS)Also known as Planned Value (PV). An earned value management term representing the value that should have been realized on the project at a given point in the schedule. Planned Value (PV) is contrasted with Earned Value (EV).
CAPM
Certified Associate in Project Management (CAPM)
A project management credential created and managed by the Project Management Institute. The CAPM is for anyone who works on a project, can demonstrate the required education, and can demonstrate an adequate understanding of the PMBOK guide.
CAP
Control Account Plan (CAP)The plan for how a given control account will be performed and measured. Since each control account is a division of the overall project, each CAP functions essentially like a mini-project plan for that division of work.
COQ
Cost of Quality (COQ)
The sum of all project costs expended associated with achieving quality. Cost of Quality includes a complete analysis that includes planning, execution, control, the costs of potential alternatives, and the costs of quality failure.
CPI
Cost Performance Index (CPI)Expressed as CPI = EV/AC, the CPI is an earned value calculation borrowed from the discipline of cost accounting. The CPI can be useful for predicting future performance based on previous history, as well as for plotting trends over time. Conventional wisdom dictates that a CPI >= 1 is preferable since that indicates that the project is earning value at a cost that is better than planned, while a CPI < 1 is undesirable since it indicates that performance lags the plan.
CPF
Cost-Plus-Fee (CPF)
Also known as Cost-Plus-Percentage-Of-Cost (CPCC), it is a type of contract where the buyer pays the seller’s costs for performing contractual duties plus a fee that is tied to the costs. Typically this fee is calculated as a percentage of costs. This contract type places a large portion of the risk on the buyer, as the seller stands to be financially rewarded when costs run high.
CPFF
Cost-Plus-Fixed-Fee (CPFF)A type of contract where the buyer pays the seller’s allowable costs for performing contractual duties plus a fixed sum for performing the work. The buyer bears much of the risk by paying the seller’s allowable costs; however, this contract type places some of the burden on the seller, since the seller’s profit is fixed regardless of how long or expensive the contract work is.
CPIF
Cost-Plus-Incentive-Fee Contract (CPIF)A type of contract where the buyer pays the seller’s allowable costs for performing contractual duties plus an incentive fee tied to the seller’s performance. The incentive is often calculated by the seller’s performance at keeping costs down. This contract type distributes the risk between the buyer and the seller.
CRC
Cost-Reimbursable Contract (CRC)
A type of contract where project costs incurred by the seller are reimbursed by the buyer. In addition, the buyer typically pays the seller an additional fee for the seller’s profit. Cost reimbursable contracts often include incentives to the seller to keep costs down, where the seller would share a percentage of the cost savings with the buyer. The share of risk distributed to the buyer and seller depends upon the specifics of the contract.
