Budgeting - Cost Controls Flashcards
What is the term used to describe a lack of expertise in a certain area?
Incompetence
This term refers to the inability to perform a task due to insufficient knowledge or skills.
What is the purpose of obtaining quotes from external experts?
To get accurate cost estimates
External experts can provide detailed and reliable price estimates based on their expertise.
Fill in the blank: When we get a quote back from external experts, we need to ensure the _______ is accurate.
price
What is a common method for estimating costs in projects?
Delphi technique
This technique involves gathering estimates from a panel of experts to reach a consensus.
True or False: Internal estimates are always more accurate than external estimates.
False
Internal estimates may lack the objectivity and detail that external experts can provide.
What does WBS stand for in project management?
Work Breakdown Structure
WBS is a tool used to break down projects into smaller, manageable components.
What is the significance of analyzing content in estimating?
It helps in understanding the detailed scope
Analyzing content allows for a clearer view of the project requirements and objectives.
Fill in the blank: The analysis of content is often described as a _______ approach.
bottom-up
What is the main benefit of using external experts for estimates?
Access to specialized knowledge
External experts bring in-depth knowledge and experience that may not be available internally.
What does the term ‘scope’ refer to in project management?
The boundaries and deliverables of the project
Scope defines what is included and excluded in a project.
What is an important factor to ensure when breaking down project tasks?
Accuracy
Each task breakdown should be precise to avoid misunderstandings and miscalculations.
