Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

PMP Exam Prep > Chapter 8: Project Cost Management > Flashcards

Chapter 8: Project Cost Management Flashcards

1
Q

A cost that changes as the project progresses.

A

Variable Cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

A cost that stays the same as the project progresses.

A

Fixed Cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

A cost that the project work incurs directly, included in the cost baseline.

A

Direct Cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

A cost that is not included in the project’s budget.

A

Indirect Cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

The amount of money that has already been spent on the project.

A

Sunk Cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Finding a less costly way of doing the work.

A

Value Engineering (AKA Value Analysis)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Traditional project funding is done ______, while in an agile project funding is done _______ .

A

Upfront, Incrementally

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

The process in which the cost management plan is created.

A

Plan Cost Management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

The plan that directs how to estimate the cost of each activity, create the project budget and monitor and control the cost of a project.

A

Cost Management Plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The process in which each individual activity is analyzed and assigned a cost.

A

Estimate Costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

The most inaccurate estimate.
-25% to +75%

A

Rough Order of Magnitude (ROM)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

An estimate expected to have about -10% to +25% variance.

A

Budget Estimate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

The most accurate estimate. -5% to +10% Variance

A

Definitive Estimate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Analogous estimation is ______, but not accurate. Bottom-up estimating is ______, but very accurate.

A

Quick, Long

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Reserves added to the cost baseline to cover project unknowns.

A

Contingency Reserves (AKA Known Unknowns)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Reserves added to the project by the organization’s management that are not included in the cost baseline.

A

Management Reserves (AKA Unknown Unknowns)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

The amount of money spent to ensure quality requirements are met on a project.

A

Cost of Quality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

How the estimates were developed and their ranges, can also include all of the assumptions and constraints made to create the estimate.

A

Basis of Estimates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

The process in which the activity cost estimates are aggregated into the project cost baseline.

A

Determine Budget

20
Q

The technique of rolling up the activity costs into work packages and then the work packages into deliverables.

A

Cost Aggregation

21
Q

A form of parametric estimating that uses data from previous projects to estimate project cost.

A

Historical Information Review

22
Q

When project funding is limited by the organization.

A

Funding Limit Reconciliation

23
Q

Acquiring money for the project from external sources.

A

Financing

24
Q

The estimated cost of a project including contingency reserves.

A

Cost Baseline (AKA Budget at Completion)

25
Q

The total budget is equal to:

A

Cost Baseline + Management Reserves

26
Q

Cost baseline can be represented graphically by an

A

S-Curve Graph

27
Q

This document states how and when a project will be funded.

A

Project Funding Requirements

28
Q

This process is a monitoring and controlling process where you will try to keep the project on budget.

A

Control Costs

29
Q

A series of calculations that will give you important statistics about a project.

A

Earned Value Management

30
Q

Services that cover any unknown risks that might arise as you execute the project.

A

Reserve Analysis

31
Q

A tool that determines if there is any variance between the planned work and the actual work completed.

A

Variance Analysis

32
Q

A tool used to determine if a trend is emerging as the project is progressing.

A

Trend Analysis

33
Q

A method of agile budgeting that considers the average cost per hour per person for each iteration.

A

Burn Rate Cost Approach

34
Q

A method of agile budgeting that estimates costs that would be assigned to each individual feature in the product backlog.

A

Cost Per Feature

35
Q

The original value of a project.

A

Budget at Completion (BAC)

36
Q

A formula that represents the amount of money worth of work that should have been completed on a project.

A

Planned Value (PV)

PV = Planned % Complete * Budget at Completion (BAC)

37
Q

A formula that represents the amount of money worth of work that has actually been completed on a project.

A

Earned Value (EV)

EV = Actual % Complete * Budget at Completion (BAC)

38
Q

Amount of money you have already spent on a project.

A

Actual Cost (AC)

39
Q

A formula that represents the difference between the work done and money spent.

A

Cost Variance (CV)

CV = Earned Value - Actual Cost

40
Q

A formula that represents the rate of money being spent to earned on a project.

A

Cost Performance Index (CPI)

CPI = Earned Value/Actual Cost

41
Q

A formula that represents the difference between the actual work that’s been completed and what should have been completed.

A

Schedule Variance (SV)

SV = Earned Value - Planned Value

42
Q

A formula that represents the rate of how closely the project schedule is being met.

A

Schedule Performance Index (SPI)

SPI + Earned Value/Planned Value

43
Q

A formula that is used to forecast the total cost of the project at the end based on the current spending rate.

A

Estimate at Completion (EAC)

EAC = Budget at Completion/Cost Performance Index

44
Q

A formula that is used to forecast the amount that will be needed to complete the project based on the current cost performance index.

A

Estimate to Completion (ETC)

ETC = Estimate at Completion - Actual Cost

45
Q

A formula that represents the difference between the original budget and new forecasted budget.

A

Variance at Completion (VAC)

VAC = Budget at Completion - Estimate at Completion

46
Q

A formula that represents the performance that needs to be met to finish the project within budget.

A

To-Complete Performance Index (TCPI)

TCPI = (Budget at Completion - Earned Value) / (Budget at Completion - Actual Cost)

PMP Exam Prep (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions