Cost Management Flashcards
What is the key output of the Plan Cost Management process?
The Cost Management Plan
What is the process of Cost Management?
Plan cost management
Estimate cost
Determine budget
Control costs
What are the key inputs to the Estimate Costs process?
Cost management Plan Scope baseline Project schedule Human resources management plan Risk register Enterprise environmental factors Organizational process assets
What are the key outputs of the Estimate Costs process?
Activity cost estimates
Basis of estimates
Updates to the project documents
What are the key outputs of the Determine Budget process?
Cost baseline
Project funding requirements
Updates to project documents
What are the key outputs of the Control Costs process?
Work performance information
Cost forecasts
Change requests
Updates to project management plan and project documents
What are the main approaches to cost of schedule estimating?
One-point Analogous Bottom-up Parametric Three-point
What is analogous estimating?
Top-down estimating that uses expert judgement and historical information to predict the future (e.g. the last 3 projects cost $25k or took 6 months, and so should this one)
What is bottom-up estimating?
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
What is parametric estimating?
Calculating estimates by looking at the relationships between variables on an activity (e.g. cost per line of code, hours per installation), based on historical information, industry requirements, standard metrics, or other sources
What is earned value measurement and how is it used?
A method for measuring project performance that looks at the value earned for work accomplished by reviewing project performance against the scope, schedule, and cost baselines
It can be used to predict future cost performance and project completion dates
What is the typical range for a rough order of magnitude (ROM) estimate?
-25 to +75 percent from actual
What is the typical range for a budget estimate?
-10 to 25% from actual
What is the typical range for a definitive estimate?
+/- 10% from actual
What is the difference between a cost budget and a cost baseline?
The cost budget adds management reserves to the cost baseline
