Chapter 6 - Budget Planning

Question 1

What happens to the budget in the planning phase?

Answer 1

It is refined and re-estimated

Question 2

What 2 types of Costs are there?

Answer 2

• Direct (salary costs)

- Indirect (building rent)

Question 3

What are the 3 approaches to estimating costs?

Answer 3

• Analogous
• Parametric
• Bottom-up

Question 4

What is the Cost Estimates document?

Answer 4

Document contains activities, the resources, and cost of that resource during the specified activity

Question 5

How is the Detailed Budget Created?

Answer 5

It is a combination of the Cost Estimates and Schedule Information

Question 6

What does the Detailed Budget Show?

Answer 6

The cost of the project from start to end

• can be organized by weekly costs and then tallied
• many ways to do it

Question 7

Define Analogous Estimate

Answer 7

Estimate based on the cost during a previous similar project

Question 8

Define Bottom-up Estimate

Answer 8

Estimate based on characteristics of each work package

Question 9

Define Parametric Estimate

Answer 9

Estimate based on availability of standard rates that are used as a basis for estimating

Question 10

Define Budget Contingency

Answer 10

Difference between total approved Project Budget and current cost estimate

Question 11

Define Work (project management terms)

Answer 11

Actual amount of time spent on an activity