Cost

Question 1

Variance Analysis

Answer 1

measure the difference between planned and actual costs

Question 2

Contingency vs Management Reserves

Answer 2

Contingency - amounts set aside by PM to cover known risks and are included in baseline

Management - management sets aside to cover unknown risks and not included in the baseline

Question 3

Payback Period

Answer 3

amount of time needed to recoup the project’s investment

Question 4

Benefit Cost Ratio

Answer 4

compares financial yield to the cost of doing the project

Question 5

7.1 Plan Cost Mgmt Description, Inputs and Outputs

Answer 5

how costs will be estimated, managed, and controlled

charter, PM Plan: Sched mgmt plan, risk mgmt plan

Cost Mgmt Plan

Question 6

7.2 Estimate Costs Description, Inputs and Outputs

Answer 6

approximation of the cost of resources

PM plan: cost mgmt plan, Qual mgmt plan, scope baseline

cost estimates, basis of estimates

Question 7

7.3 Determine Budget Description, Inputs and Outputs

Answer 7

establish authorized cost budget

PM plan: cost mgmt plan, resource mgmt plan, scope baseline, basis of estimates, cost estimates

cost baseline, project funding requirements

Question 8

7.4 Control Costs Description, Inputs and Outputs

Answer 8

monitor and update budget, manage changes to cost baseline

PM Plan, proj docs, proj funding req’ts, work perf data

Work performance information, cost forecasts