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CAPM Stent > Ch 7 - Project Cost Management" > Flashcards

Ch 7 - Project Cost Management" Flashcards

1
Q

The aggregation of estimated costs of individual activities or work packages to establish a cost baseline is known as what?

A

Cost Aggregation.

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1
Q

What is the process of estimating the costs of resources required to complete project work?

A

Cost Estimation.

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2
Q

What is the process of developing an approximation of the monetary resources needed to complete project activities?

A

Estimate Costs.

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3
Q

What is a technique that uses the actual cost of previous similar projects as the basis for estimating the cost of the current project?

A

Analogous Estimating.

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4
Q

What is a detailed approach that estimates the cost by summing the costs of individual activities?

A

Bottom-Up Estimating.

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5
Q

What technique uses a statistical relationship between historical data and other variables to estimate project costs?

A

Parametric Estimating.

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6
Q

The cost baseline is typically established during which process?

A

Determine Budget.

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7
Q

What is the approved version of the time-phased project budget, excluding management reserves, used to measure, monitor, and control overall cost performance?

A

Cost Baseline.

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8
Q

What is the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline?

A

Determine Budget.

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9
Q

Which reserve is set aside to address the identified risks that remain after the risk response planning process?

A

Contingency Reserve.

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10
Q

Which method involves calculating the value of the work performed and comparing it to the actual cost incurred to determine project performance?

A

Earned Value Management (EVM).

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10
Q

What is the process of monitoring the status of the project to update project costs and manage changes to the cost baseline?

A

Control Costs.

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11
Q

What reserve is set aside for unidentified risks and typically requires management approval for use?

A

Management Reserve.

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12
Q

What is the formula to calculate Cost Performance Index (CPI)?

A

CPI = EV / AC (Earned Value / Actual Cost).

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13
Q

What is the formula to calculate the Schedule Performance Index (SPI)?

A

SPI = EV / PV (Earned Value / Planned Value)

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14
Q

What term refers to the difference between the budget at completion (BAC) and the actual cost?

A

Cost Variance (CV)

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15
Q

What is the term for the expected total cost of completing all work expressed as the sum of the actual cost to date and the estimate to complete (ETC)?

A

Estimate at Completion (EAC).

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16
Q

What is the term for the amount of work scheduled to be completed by a certain date, versus the amount of work actually completed by that date?

A

Schedule Variance (SV)

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17
Q

What is the term for the expected cost to finish all the remaining project work?

A

Estimate to Complete (ETC).

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18
Q

What is the formula for calculating Estimate at Completion (EAC) if the project is expected to continue performing at the current Cost Performance Index (CPI)?

A

EAC = BAC / CPI.

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19
Q

What is the formula for calculating Estimate at Completion (EAC) when the project is expected to perform at the original budget rate?

A

EAC = AC + (BAC - EV)

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20
Q

Which cost estimating method is the most accurate but time-consuming?

A

Bottom-Up Estimating.

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21
Q

What term describes the predicted difference between the current cost baseline and the expected final project cost?

A

Variance at Completion (VAC).

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22
Q

What is the formula for calculating To-Complete Performance Index (TCPI) based on the budget at completion?

A

TCPI = (BAC - EV) / (BAC - AC)

23
Q

What is the technique called when the total project cost is divided by the total number of units to obtain a per-unit cost?

A

Unit Cost Estimating.

24
Q

What is the process of determining a budget that allows the project to be completed within the approved funding?

A

Determine Budget.

25
Q

What term refers to unauthorized deviations from the budget, often caused by poor scope control?

A

Cost Overrun.

26
Q

What is a periodic reassessment of the work’s budget against the baseline called?

A

Cost Review.

27
Q

What is the time-phased project budget used to measure and control cost performance?

A

Cost Baseline.

28
Q

What is the systematic approach to managing changes to the cost baseline?

A

Cost Control. A: Cost Estimation.

29
Q

The aggregation of estimated costs of individual activities or work packages to establish a cost baseline is known as what?

A

Cost Aggregation.

30
Q

What is the process of developing an approximation of the monetary resources needed to complete project activities?

A

Estimate Costs.

31
Q

What is a technique that uses the actual cost of previous similar projects as the basis for estimating the cost of the current project?

A

Analogous Estimating.

32
Q

What is a detailed approach that estimates the cost by summing the costs of individual activities?

A

Bottom-Up Estimating.

33
Q

What technique uses a statistical relationship between historical data and other variables to estimate project costs?

A

Parametric Estimating.

34
Q

The cost baseline is typically established during which process?

A

Determine Budget.

35
Q

What is the approved version of the time-phased project budget, excluding management reserves, used to measure, monitor, and control overall cost performance?

A

Cost Baseline.

36
Q

What is the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline?

A

Determine Budget.

37
Q

Which reserve is set aside to address the identified risks that remain after the risk response planning process?

A

Contingency Reserve.

38
Q

What reserve is set aside for unidentified risks and typically requires management approval for use?

A

Management Reserve

39
Q

What is the process of monitoring the status of the project to update project costs and manage changes to the cost baseline?

A

Control Costs.

40
Q

Which method involves calculating the value of the work performed and comparing it to the actual cost incurred to determine project performance?

A

Earned Value Management (EVM).

41
Q

What is the formula to calculate Cost Performance Index (CPI)?

A

CPI = EV / AC (Earned Value / Actual Cost)

42
Q

What is the formula to calculate the Schedule Performance Index (SPI)?

A

SPI = EV / PV (Earned Value / Planned Value)

43
Q

What is the term for the expected total cost of completing all work expressed as the sum of the actual cost to date and the estimate to complete (ETC)?

A

Estimate at Completion (EAC).

44
Q

What is the term for the amount of work scheduled to be completed by a certain date, versus the amount of work actually completed by that date?

A

Schedule Variance (SV)

45
Q

What term refers to the difference between the budget at completion (BAC) and the actual cost?

A

Cost Variance (CV)

46
Q

What is the term for the expected cost to finish all the remaining project work?

A

Estimate to Complete (ETC).

47
Q

What is the formula for calculating Estimate at Completion (EAC) if the project is expected to continue performing at the current Cost Performance Index (CPI)?

A

EAC = BAC / CPI.

48
Q

What is the formula for calculating Estimate at Completion (EAC) when the project is expected to perform at the original budget rate?

A

EAC = AC + (BAC - EV).

49
Q

What is the formula for calculating To-Complete Performance Index (TCPI) based on the budget at completion?

A

TCPI = (BAC - EV) / (BAC - AC)

50
Q

What term describes the predicted difference between the current cost baseline and the expected final project cost?

A

Variance at Completion (VAC).

51
Q

Which cost estimating method is the most accurate but time-consuming?

A

Bottom-Up Estimating.

52
Q

What is the technique called when the total project cost is divided by the total number of units to obtain a per-unit cost?

A

Unit Cost Estimating.

53
Q

What is the process of determining a budget that allows the project to be completed within the approved funding?

A

Determine Budget.

54
Q

What term refers to unauthorized deviations from the budget, often caused by poor scope control?

A

Cost Overrun.

55
Q

What is a periodic reassessment of the work’s budget against the baseline called?

A

Cost Review.

56
Q

What is the time-phased project budget used to measure and control cost performance?

A

Cost Baseline.

57
Q

What is the systematic approach to managing changes to the cost baseline?

A

Cost Control.

CAPM Stent (5 decks)

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