Capitulo: 7. PROJECT COST MANAGEMENT Flashcards
What is the process of cost management?
Plan Cost Management
Estimate Costs
Determine Budget
Control Costs
What is the output of the Plan Cost
Management process?
Cost management plan
What are the key inputs to the Estimate
Costs process?
Cost management plan
Quality management plan
Scope baseline
Lessons learned register
Project schedule
Resource requirements
Risk register
Enterprise environmental factors
Organizational process assets
Project management costs
What are the key outputs of the Estimate
Costs process?
Cost estimates
Basis of estimates
Updates to project documents
What are the key outputs of the
Determine Budget process?
Cost baseline
Project funding requirements
Updates to project documents
What are the key outputs of the Control
Costs process?
Work performance information
Cost forecasts
Change requests
Updates to project management plan
and project documents
What does life cycle costing mean?
Considering costs over the entire life
of the product, not just the cost of the
project to create the product
What is value analysis?
Finding a less costly way of doing
essentially the same work (also known as
value engineering)
What three knowledge areas use the
concept of cost risk?
Cost
Procurement
Risk
How do variable costs differ from fixed
costs?
Variable costs change with the amount
of production or amount of work done
on the project
Fixed costs do not change as production
changes
What is a direct cost?
Direct cost: A cost that is directly
attributable to the work on the project
What is an indirect cost?
Indirect cost: Overhead costs or costs
incurred for the benefit of more than
one project
What is the difference between a
contingency reserve and a management
reserve?
Contingency reserves are used for
known risks, which are specifically
identified risks
Management reserves are used to
accommodate unknown or unidentified
risks
What is cost of quality?
The cost of work added to the project to
accommodate quality efforts
What is the difference between a cost
budget and a cost baseline?
The cost budget adds management
reserves to the cost baseline
How can progress reporting help the
project manager?
It can help control schedule and costs
It can help the project manager assess
whether the project is on track through
earned value analysis
What is earned value analysis, and how
is it used?
It is used in performance reviews to
measure project performance against the
scope, schedule, and cost baselines
Using the work performance
information gathered through earned
value analysis, a project manager can
create reports, including cost forecasts,
and other communications related to the
projects progress; it may also result in
change requests
What combined baselines are called the
performance measurement baseline?
Scope, schedule, and cost baselines
What is the difference between planned
value and earned value?
Planned value is the estimated value of
the work planned, as of today
Earned value is the estimated value of
the work actually accomplished, as of
today
What is actual cost?
What is budget at completion?
The actual cost incurred for the work
accomplished, as of today
The projects planned budget; indicates
what the end cost of the project would
be if everything went according to plan
