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My CAPM > Cost > Flashcards

Cost Flashcards

1
Q

Plan Cost Management

A

how the cost will be estimated, budgeted, managed, monitored and controlled.

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2
Q

Plan Cost Management

Benefit

A

provides guidance and direction on how the project cost will be managed

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3
Q

Plan Cost Management

Input

A

proj Charter

PMP: Schedule (impact cost est.); Risk (impact cost est and mgmt)

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4
Q

Plan Cost Management

Output

A

cost management plan

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5
Q

Plan Cost Management

TT

A

EDM

expert judgement, data analysis, meetings

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6
Q

cost management plan

components

A 
units of measure,
level of precision, 
level of accuracy, (range: 10%)
org procedure links (WBS control account #/code)
control thresholds (% deviation of baseline)
rules of performance measurement 
reporting formats (EVM)
additional details
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7
Q

estimate cost

A

develop an approximation of the cost of the resources needed to complete the project

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8
Q

estimate cost

benefit

A

determine the monetary resources required

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9
Q

estimate cost

input

A
  • COST (level of precision); QUA; Scope baseline (PSS, WBS, dictionary)
    Dos:
    Proj schedule, resource requirement, risk register
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10
Q

estimate cost

out put

A

cost estimate

basis of estimate

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11
Q

estimate cost

TT

A

E + D + PABT

D=data analysis: alternative, reserve, cost of quality

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12
Q

determine budget

A

AGGREGATE the est. cost of individual activities or work package to establish the COST BASELINE

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13
Q

determine budget

benefit

A

determines the COST BASELINE against which project performance can be monitored can controlled

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14
Q

cost baseline

A

APPROVED version of time-phased project budget that includes CONTINGENCY RESERVES.
NOTE: EXCLUDES management reserve.
NOTE: If the project uses
earned value management (EVM), the cost baseline is
known as the performance measurement baseline.

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15
Q

Cost Range

rough order of magnitude (ROM)

A

during initiation, a tolerance range for a rough order of magnitude (ROM) estimate could be

  • 25% to +75%, and as the project work evolves into execution, the tolerance could narrow to
  • 5% to +10%.
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16
Q

determine budget

input

A

PMP: Cost, Resource, Scope baseline
Docs: cost est. basis of est. proj schedule, risk register
Aggreement

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17
Q

determine budget

output

A

cost baseline

project funding requirements

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18
Q

determine budget

TT

A
  • cost aggregation
  • historical info review
  • funding limit reconciliation
  • expert judgement
  • data analysis: reserve
    (note: no estimation tools for determining budget)
19
Q

project funding requirements

A

periodical funding requirements derived from cost baseline. Occurs in incremental amounts, may not evenly distributed.

20
Q

control costs

A

monitor the status of project to update and manage changes to the cost baseline

21
Q

control costs

benefit

A

maintain the cost baseline

22
Q

control costs

input

A
  • PMP: Cost MP, cost baseline, performance measurement baseline
  • project funding requirements
  • work performance data
23
Q

control costs

output

A
  • work performance info
  • COST FORECASTS
  • change request
  • PMP update: cost baseline
24
Q

control costs

TT

A
  • EVTR (EVA, variance, trend, reserve)

- TCPI

25
Q

cost forecasts

A

Forecasts are estimates or predictions of the future state of the project based on past performance and expected future performance. EAC, ETC, VAC
are documented and conveyed to stakeholders.

26
Q

Budget at Completion (BAC)

aka Performance Baseline

A

The amount the project is expected to cost.

Total PV

27
Q 
Planned Value (PV)
aka Budgeted Cost of Work Scheduled (BCWS)
A

The value of the work that should have been completed at a specific point in time,
EXCLUDING any work started ahead of schedule

28
Q 
Actual Cost (AC)
aka Actual Cost of Work Performed (ACWP)
A

The cost of the work that has been completed at a specific point in time, including any work started
ahead of schedule.
regardless of its completion status (1% to 100%)

29
Q 
Earned Value (EV)
aka Budgeted Cost of Work Performed (BCWP)
A

A measurement of the project’s
progress and the basis for cost
analysis, including any work
started ahead of schedule

30
Q

Schedule Performance Index (SPI)

A

EV / PV
efficiency indicator, the amount of work done at a single point in time.
e.g. SPI=0.67 means only 67% of the work scheduled to be done has been done

31
Q

Schedule Variance (SV)

A

EV - PV
>0, the project is ahead of schedule.
<0, the project is behind schedule.

32
Q

cost analysis

A

Cost analysis, at its most basic, is determining progress in terms of the amount of work
completed (EV) versus what was paid to complete the work (AC). Using budget at completion,
planned value, actual cost, and earned value, the CPI, CV, and TCPI can be determined.

33
Q

Cost Performance Index (CPI)

A

EV/AC
An efficiency indicator that denotes the return on each dollar spent at a single point in time.
e.g. CPI=0.5 means that 50 cents of project work is completed for every dollar spent.

34
Q

Cost Variance (CV)

A

EV-AC
>0, the project is under budget.
<0, the projectis over budget.

35
Q

Estimate at Completion (EAC)

based on the current spending efficiency (CPI)

A

EAC = BAC / CPI

36
Q

EAC forecast for ETC work performed at budgeted rate

A

EAC = AC + (BAC-EV)

37
Q

EAC forecast for manual, bottom-up ETC

A

EAC = AC + new/bottom-up ETC

38
Q

EAC forecast using CPI

A

EAC = AC + [(BAC – EV)/(CPI x SPI)]

39
Q

Variance at Completion (VAC)

A

VAC = BAC - EAC

40
Q

Present Value (PV)

A

amount of money needed now at
the interest rate (r) for a desired future outcome
(FV) over a number of periods (n).
PV = FV/(1+R)n

41
Q

Future Value (FV)

A

FV = PV x (1+r)n

42
Q

Net Present Value

NPV

A

A value used in capital budgeting, in which the present value of cash inflow is subtracted from the present value of cash outflows;
compares the value of a dollar today versus the value of that same dollar in the future, after taking inflation and return into account

43
Q

Internal Rate of Return (IRR)

A

A project comparison value; represents the discounted rate that ZEROs out the net present value (NPV)

My CAPM (12 decks)

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