Brainscape's Knowledge GenomeTM

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


See full index

CAPM > Cost > Flashcards

Cost Flashcards

1
Q

What is the budget?

A

Budget: spreads costs over time, allocating funds to the resources needed to have the project meet its schedule.

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

What is the contingency reserve?

A

Contingency reserve: costs of the response solutions for known project risks.

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

What is the cost baseline?

A

Cost baseline: the approved version of the time phased project budget excluding any management reserves. It is used as a basis for comparison to actual project results and can only be changed through formal change control procedures.

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

What is earned value management? (EVM)

A

A methodology that combines scope, schedule and resource measurements to assess project performance and progress against the project baseline. EVM is one of the best techniques for controlling costs. It helps you understand how you are spending money and what progress is earned for the money spent.

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

Determining the approximate monetary resources required to complete project activities is the purpose of what project cost management process?

A

Estimate costs is the process of developing an approximation of the cost of resources needed to complete the project work. The key benefit of this process is that it determines the monetary resources required for the project.

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

What processes does project cost management include?

A

Project cost management includes the processes involved in planning, estimating, budgeting, financing, funding, managing and controlling costs so that the project can be completed within the approved budget.

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

What are the considerations when tailoring processes for project cost management?

A

Considerations for tailoring project cost management include but are not limited to: knowledge management, estimating and budgeting, earned valued management, use of agile approach and governance.

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

What is the cost management plan?

A

The cost management plan defines how the project costs will be estimated budgeted, managed, monitored and controlled. It sets the framework that allows cost processes to be efficient and coordinated.

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

What are the inputs to the plan cost management process?

A

Project charter
Project management plan
Organizational process assets
Enterprise environmental factors

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

What is the output of the plan cost management process?

A

Cost management plan

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

What are the tools and techniques for the plan? Cost management process?

A

Expert judgment
Meetings
Data analysis

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

What is a cost estimate?

A

Cost estimate is a quantitative assessment of the likely costs for resources required to complete the activity. Cost estimates are generally expressed in units of some currency and sometimes other units of measure such as staff hours or staff days.

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

What resources are estimated in cost estimates?

A

Costs are estimated for all resources that will be charged to the project. This includes, but is not limited to, labor materials, equipment, services and facilities as well as special categories such as an inflation allowance, cost of financing or contingency costs.

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

What is analogous cost estimating?

A

Analogous cost estimating uses values, or attributes, of a previous project that are similar to the current project. Values and attributes of the projects may include but are not limited to: scope, cost, budget, duration and measures of scale (eg. size, weight). Comparison of these project values, or attributes, becomes the basis for estimating the same parameter or measurement for the current project.

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

What is the rough order of magnitude (ROM)?

A

The rough order of magnitude (ROM) is an estimate of costs provided in the early stages of a project when the scope and requirements are not fully defined. The ROM estimate may have a larger range in the initiation phase (- 25% to 75%) and a narrower range later in the project (-5% to 10%).

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

What is progressive elaboration?

A

Progressive elaboration: as the project progresses, the scope will become clearer and estimates will be more accurate.

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

What is parametric estimating?

A

Parametric estimating: uses the statistical relationship between historical data and other variables (such as square footage) to calculate a cost estimate. The number of units is multiplied by the cost per unit to derive a cost estimate for that particular entity.

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

What is bottom-up estimating?

A

Bottom-up estimating: takes detailed estimates at the work package level to determine the most accurate estimate possible. To begin, estimate the cost of work packages or activities to the greatest level of detail. Then, roll up costs to high levels for reporting and tracking purposes.

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

What are the inputs to the estimate costs process?

A

Project management plan
Organizational process assets
Enterprise environmental factors
Project documents

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What the outputs of the estimate costs process?

A

Cost estimates
Basis of estimates
Project documents updates

21
Q

What the tools and techniques for the estimate costs process?

A

Three-point estimating
Parametric estimating
Analogous estimating
Bottom-up estimating
Project management information system
Data analysis
Expert judgment
Decision making

22
Q

What is the cost baseline?

A

The cost baseline is the approved version of the time phased project budget excluding any management reserves which can only be changed through formal change control procedures. The cost baseline is developed as a summation of the approved budgets for different schedule activities. The cost baseline is a time phased view that is typically displayed in the form of an S-curve.

23
Q

What is the difference between the project budget and the cost baseline?

A

The project budget includes all the funds authorized to execute the project. The cost baseline is the approved version of the time phased project budget that includes contingency reserves but excludes management reserves.

24
Q

What are the inputs to the determine budget process group?

A

Project management plan
Organizational process assets
Agreements
Enterprise environmental factors
Project documents
Business documents

25
Q

What are the outputs to the determine budget process group?

A

Cost baseline
Project funding requirements
Project documents updates

26
Q

What are the tools and techniques for the determine budget process group?

A

Data analysis
Funding limit reconciliation
Cost aggregation
Expert judgment
Financing
Historical information review

27
Q

What is the to-complete performance index (TCPI)?

A

The to-complete performance index (TCPI) is a measure of the cost performance that is required to be achieved with the remaining resources in order to meet a specified management goal expressed as the ratio of the cost to finish the outstanding work to the remaining budget.

28
Q

How is the to-complete performance index (TCPI) calculated?

A

The equation for the TCPI is based on the BAC (budget at completion):
TCPI = (BAC-EV)/(BAC-AC)

29
Q

What is the definition of estimate at completion (EAC)?

A

The actual costs incurred for the work completed plus an estimate to complete (ETC) the remaining work.

30
Q

What is the cost performance index (CPI)?

A

The cost performance index (CPI) is a measure of the cost efficiency of budgeted resources expressed as a ratio of earned value to actual cost. A CPI value of less than 1.0 indicates a cost overrun for work completed and the CPI value of greater than 1.0 indicates a cost under-run of performance to date.
CPI = EV/AC

31
Q

What is work performance information?

A

Work performance information: includes information on how the project work is performing compared to the cost baseline.

32
Q

What is budget at completion (BAC)?

A

Budget at completion (BAC): the total budget allocated to the project.

33
Q

What is estimate at completion (EAC)?

A

Estimate at completion (EAC): the expected total cost of completing all work expressed. Actual cost (AC) + estimate to complete (ETC).

34
Q

What is earned value analysis (EVA)?

A

Earned value analysis (EVA): shows the health of the project by integrating scope, schedule and cost.
EVA can be reported for the current reporting and also cumulatively.
EVA can be used to forecast the total cost of the project at completion and the efficiency required to complete the project.

35
Q

What is planned value (PV)?

A

Planned value (PV): the authorized budget assigned to scheduled work. The total of the PV is sometimes referred to as the performance measurement baseline (PMB).

36
Q

What is earned value (EV)?

A

Earned value (EV): a measure of work performed until a specific date expressed in monetary value obtained as a result of the work performed. The EV needs to relate to the PMB. The EV cannot be greater than the authorized PV budget for a component. The EV is often used to calculate the percentage complete of a project.

37
Q

What is actual cost (AC)?

A

Actual cost (AC): the budget spent until a specific date for the work performed until that date. The total cost incurred in accomplishing the work that the EV measured.

38
Q

What is variance at completion (VAC)?

A

A projection of the amount of budget (deficit or surplus) expressed as the difference between the budget at completion (BAC) and the estimate at completion (EAC).
VAC = BAC - EAC

39
Q

What is schedule variance (SV)?

A

A measure of schedule performance.
SV = EV - PV

40
Q

What is cost variance (CV)?

A

The amount of budget deficit or surplus at a given point in time.
CV = EV - AC

41
Q

What is the schedule performance index (SPI)?

A

A measure of schedule efficiency. If the result is greater than 1 more work was completed than was planned.
SPI = EV/PV

42
Q

What is the cost performance index (CPI)?

A

The cost performance index measures the cost efficiency of budgeted resources. If the result is greater than one, the project is saving money.
CPI = EV/AC

43
Q

What is the purpose of trend analysis?

A

Trend analysis examines the project performance over time to determine if performance is improving or deteriorating.

44
Q

What is reserve analysis?

A

During cross control, reserve analysis is used to monitor the status of contingency and management reserves to determine if these reserves are still needed or if additional reserves should be requested.

45
Q

What is the to-complete performance index (TCPI)?

A

The TCPI is a measure of the cost performance that should be achieved with the remaining resources in order to meet a management goal.

46
Q

What are the inputs to the control costs process group?

A

Project management plan
Project documents
Work performance data
Organizational process assets
Project funding requirements

47
Q

What are the outputs of the control costs process group?

A

Project documents updates
Project management plan updates
Cost forecasts
Change requests
Work performance information

48
Q

What are the tools and techniques used in the control costs process group?

A

To-complete performance index
Data analysis
Expert judgment
Project management information system

CAPM (12 decks)

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