Brainscape's Knowledge GenomeTM

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


See full index

PMBOK 4.0 > Cost > Flashcards

Cost Flashcards

1
Q

What is the process of cost management?

A

Estimate costs
Determine budget
Control costs

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

In which process is the cost management plan created?

A

The cost management plan is created in integration management as part of the Develop Project Management Plan process.

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

What are key outputs of the Estimate Costs process?

A

Activity cost estimates.

Updates to the project management plan and project docs.

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

What are the key outputs of the Determine Budgest process?

A

Cost baseline

Fundting requirements

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

What are the key outputs of the Control Costs process?

A

Work perfomrance measurements
Budgest forceasts
Change requests
Updatesd to the project management plan and project docs.

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

Name inputs to the Estimate Costs process:

A 
Scope baseline
Project schedule
Human resource plan
EEFs
OPAs
Risk register
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the main approaches to cost or schedule estimating?

A 
Analogous estimating
Bottom - up estimating
Parametric estimating
Three - point estimates 
One-time estimates
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is analogous estimating?

A

Top - down estimating that uses expert judgement and looks at the past to predict the future.

“The last three projects cost $25,00, or took six months, and so should this one.”

AKA “top down” estimating

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

What is bottom - up estimating?

A

Creating estimates based on the details of the project (e.g., from the bottom of the work breakdown structure), which are then rolled up into project estimates. VERY DETAILED - TAKES TIME

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

What is parametric estimating?

A

Calculating estimates using historical info (ex cost per line of code, hours per installation)

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

What is a Three - Point estimate?

A

Uses three cost estimates to determine expected cost estimate

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

What is earned value measurment?

A

A method of measuring project perfomrance that looks at the value earned for work accomplished.

It can be used to predict future cost performance and project completion dates.

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

What is the range for rough order of magnitude estimate?

A

+/- 50 % from actual

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

What is the range for a budget estimate?

A

-10 % to +25 % from actual

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

What is the range for definative estimate?

A

+/- 10 % from actual

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

What is the differance between a cost budget and a cost baseline?

A

The cost budget adds management reserve to the cost baseline.

17
Q

What is the formula for cost variance (CV)?

A

EV - AC = CV

18
Q

What is the formula for schedule variance (SV)?

A

EV - PV = SV

19
Q

What is the formula for cost performance index (CPI)?

A

EV/AC = CPI

20
Q

What is the formulat for schedule performance index (SPI)?

A

EV/PV=SPI

21
Q

What are the formulas for estimate at completion (EAC)?

A

AC + Bottom-up ETC = EAC
BAC/CPIc = EAC
AC + (BAC-EV) = EAC
AC + (BAC-EV)/(CPIc x SPIc) = EAC

22
Q

What is the formula for estimate to complete (ETC)?

A

EAC-AC=ETC

23
Q

What is the formula for variance at completion (VAC)?

A

BAC - EAC = VAC

24
Q

What is the formulat for To Complete Performance Index (TCPI)?

A

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

25
Q

Describe a variable cost and a fixed cost chargeable to the project.

A

Variable cost: A cost that varies with the amount of work done on the project.

Fixed cost: A cost that does not vary with the amount of work done on the project.

26
Q

Earned Value (EV)

A

Measurement of the progress of a project and the basis for the cost analysis
Including any work started ahead of schedule

On the exam most of the time this is given to you – but you should understand how to come up with it

27
Q

Actual Costs (AC)

A

The cost of work that has been completed at a specific time

Including any work that started ahead of schedule

28
Q

Planned Value (PV)

A

The value of the work that should have been completed at a specific point in time

Not including any work started ahead of schedule

29
Q

Budget at completion (BAC)

A

Amount you expect the project to cost

30
Q

Describe a direct cost and an indirect cost chargeable to the project.

A

Direct Cost: A cost directly attributable to the project.

Indirect costs: overhead costs

31
Q

What does life cycle costing mean?

A

Considering the future cost of operating and maintaining the project or deliverable over its life when planning and managing the project.

32
Q

What is value analysis?

A

Finding a less costly way of doing essentially the same work.

PMBOK 4.0 (12 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions