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PMP 6th Edition > Cost Management > Flashcards

Cost Management Flashcards

1
Q

What are the 4 main inputs to the Determine Budget Process?

A

Cost Estimate
Project Schedule
Agreements
Scope Baseline

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2
Q

What are the 3 main inputs to the Control Costs Process?

A

Project Management Plan (Cost Baseline)
Project Funding Requirements
Work Performance Datar

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3
Q

What are the 4 main tools of the Control Costs Process?

A

Earned Value Analysis
Variance Analysis
Reserve Analysis
To-complete Performance Index

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4
Q

What are the 2 main outputs of the Control Costs Process?

A

Cost Forecasts

Work Performance Information (CV, SV, CPI, SPI)

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5
Q

What are the 3 main tools used in the Determine Budget Process?

A

Funding Limit Reconciliation
Cost Aggregation
Reserve Analysis

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6
Q

What are the 2 main outputs of the Determine Budget Process?

A

Cost Baseline

Project Funding Requirements

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7
Q

What are the 4 main tools of the Estimate Costs Process?

A

Analogous (top down) Estimating
Parametric Estimating
3 point estimating
Bottom-up Estimating

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8
Q

What is the main output of the Estimate Costs Process?

A

Cost Estimates

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9
Q

What is the main output of the Plan Cost Management Process?

A

Cost Management Plan

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10
Q

What is Life-Cycle Costing?

A

Total cost of ownership from purchase to disposal.

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11
Q

What is Value Engineering?

A

Maximizing project value in cost, quality, schedule and benefit without sacrificing scope.

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12
Q

What is cost aggregation?

A

Rolling up Activity costs to accounting periods or the WBS node.

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13
Q

What does the S-Curve represent?

A

The cumulative sum of the budgeted costs.

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14
Q

What is Funding Limit Reconciliation?

A

Adjusting project costs and timeframes to fit within funding availability timeframes.

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15
Q

What is the range of a rough order of magnitude (ROM)?

A

-25% - +75%

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16
Q

What is the range of a preliminary estimate?

A

-20% to +30%

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17
Q

What is the range of a definitive estimate?

A

-5% to +10%

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18
Q

Which Process group does the Plan Cost Management Process belong to?

A

Planning

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19
Q

Which Process group does the Estimate Costs Process belong to?

A

Planning

20
Q

Which Process group does the Determine Budget Process belong to?

A

Planning

21
Q

Which Process group does the Control Costs Process belong to?

A

Monitoring & Controlling

22
Q

What does CoQ stand for?

A

Cost of Quality

23
Q

What does CoPQ stand for?

A

Cost of Poor Quality

24
Q

Cost Baseline + _______________ = Project Budget

A

Management Reserve

25
Q

What is the definition of Budgeted at Completion?

A

The approved amount that the project was originally going to cost.

26
Q

What is another term for Planned Value?

A

Budgeted Cost of Work Scheduled

27
Q

What is the definition of Planned Value?

A

How much work should have been completed by a point in time based on the plan.

28
Q

What is another term for Earned Value?

A

Budgeted Cost of Work Performed.

29
Q

What is the definition of Earned Value?

A

How much work was actually completed at a given point in the schedule.

30
Q

What is another term for Actual Cost?

A

Actual Cost of Work Performed

31
Q

What is the definition of Actual Cost?

A

The money spent during a period of time.

32
Q

What is the definition of Cost Variance?

A

The difference between what was planned to be spent and what was actually spent.

33
Q

What is the definition of Schedule Variance?

A

The difference between where we planned to be in the schedule and where we actually are in the schedule.

34
Q

What is the definition of Cost Performance Index?

A

The ratio of the actual cost to the planned cost.

35
Q

What is the defintion of Schedule Performance Index?

A

The ratio of the actual project performance to the planned performance.

36
Q

What is the definition of Estimate at Completion?

A

The total cost at the end of the project based on what has been spent so far and the forecast spending rate for the remainder of the project.

37
Q

What is the definition of Estimate to Completion

A

Projecting the remaining spend on a project based on past performance.

38
Q

What is the definition of Variance at Completion?

A

The difference between what was budgeted and what was actually spent.

39
Q

What is the definition of To-Complete Performance Index?

A

The performance that must be achieved in order to meet the approved project budget and/or schedule.

40
Q

What is the definition of a Fixed Cost?

A

A cost that stays the same throughout the life of the project.

41
Q

What is the definition of a Variable Cost?

A

Costs that may vary over the life of the project.

42
Q

What is the definition of a Direct Cost?

A

Costs that are billed directly to the project.

43
Q

What is the definition of an indirect cost?

A

Costs that are shared and allocated among several projects.

44
Q

What is the definition of a sunk cost?

A

Costs that have already been spent on the project and are unrecoverable.

45
Q

What is the definition of an Opportunity Cost?

A

The cost of the loss of the potential benefit from alternative projects that were not selected.

PMP 6th Edition (8 decks)

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