Cost Control Calculation Basics Flashcards

1
Q

define “total project cost”

A

all costs specific to a project, from initiating to completion

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2
Q

define “expenditure tracking and reporting”

A

helps PM to evaluate a project’s financial status

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3
Q

define “planned value”

A

the approved budget assigned to the work to be completed during a given time period

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4
Q

defined “earned value”

A

the value of the work completed to date compared to the budget

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5
Q

define “actual cost”

A

money actually expended during a given time period for completed work

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6
Q

define “cost baseline”

A

the approved project budget

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7
Q

define “schedule variance”

A

compares an activity’s actual progress to date to the estimated progress, represented in terms of cost

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8
Q

define “cost variance”

A

measures the actual performance to date against what’s been spent

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9
Q

define “cost performance index”

A

measures the value of the work completed at the measurement date against the actual cost

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10
Q

define “schedule performance index”

A

measures the progress to date against the progress that was planned

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11
Q

How would you describe a situation in which a calculated CV had a negative value?

A

costs were higher than planned
more was spent than planned
budget deficit

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12
Q

How would you describe a situation in which a calculated CV had a positive value?

A

cost were lower than planned
less was spent than planned
budget surplus

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13
Q

How would you describe a situation in which a calculated SV had a negative value?

A

the project is behind schedule

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14
Q

How would you describe a situation in which a calculated SV had a positive value?

A

the project is ahead of schedule

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15
Q

How would you describe a situation in which a calculated SPI was < 1 ?

A

the project is behind schedule

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16
Q

How would you describe a situation in which a calculated CPI was < 1 ?

A

the project is over budget
the project is earning less money than it is spending

17
Q

How would you describe a situation in which a calculated CPI was > 1 ?

A

the project is over budget
the project is earning more money than it is spending

18
Q

What are two methods to calculate burn rate?

A
  1. inverse of CPI ( 1 /CPI )
  2. AC/EV
19
Q

You calculate a burn rate with a value < 1. What does that imply?

A

You are spending money slower than planned, and will complete the project within budget

20
Q

You calculate a burn rate with a value > 1. What does that imply?

A

You are spending money faster than planned; at this rate, you will exhaust the budget before the project is complete

21
Q

define “estimate at completion”

A

used in cost forecasting to describe the forecasted cost of the project from initiation

22
Q

define “estimate to completion”

A

used in cost forecasting to forecast how much more money will need to be spent to reach completion