Cost Management Flashcards
What are the 4 main inputs to the Determine Budget Process?
Cost Estimate
Project Schedule
Agreements
Scope Baseline
What are the 3 main inputs to the Control Costs Process?
Project Management Plan (Cost Baseline)
Project Funding Requirements
Work Performance Datar
What are the 4 main tools of the Control Costs Process?
Earned Value Analysis
Variance Analysis
Reserve Analysis
To-complete Performance Index
What are the 2 main outputs of the Control Costs Process?
Cost Forecasts
Work Performance Information (CV, SV, CPI, SPI)
What are the 3 main tools used in the Determine Budget Process?
Funding Limit Reconciliation
Cost Aggregation
Reserve Analysis
What are the 2 main outputs of the Determine Budget Process?
Cost Baseline
Project Funding Requirements
What are the 4 main tools of the Estimate Costs Process?
Analogous (top down) Estimating
Parametric Estimating
3 point estimating
Bottom-up Estimating
What is the main output of the Estimate Costs Process?
Cost Estimates
What is the main output of the Plan Cost Management Process?
Cost Management Plan
What is Life-Cycle Costing?
Total cost of ownership from purchase to disposal.
What is Value Engineering?
Maximizing project value in cost, quality, schedule and benefit without sacrificing scope.
What is cost aggregation?
Rolling up Activity costs to accounting periods or the WBS node.
What does the S-Curve represent?
The cumulative sum of the budgeted costs.
What is Funding Limit Reconciliation?
Adjusting project costs and timeframes to fit within funding availability timeframes.
What is the range of a rough order of magnitude (ROM)?
-25% - +75%
What is the range of a preliminary estimate?
-20% to +30%
What is the range of a definitive estimate?
-5% to +10%
Which Process group does the Plan Cost Management Process belong to?
Planning
Which Process group does the Estimate Costs Process belong to?
Planning
Which Process group does the Determine Budget Process belong to?
Planning
Which Process group does the Control Costs Process belong to?
Monitoring & Controlling
What does CoQ stand for?
Cost of Quality
What does CoPQ stand for?
Cost of Poor Quality
Cost Baseline + _______________ = Project Budget
Management Reserve
What is the definition of Budgeted at Completion?
The approved amount that the project was originally going to cost.
What is another term for Planned Value?
Budgeted Cost of Work Scheduled
What is the definition of Planned Value?
How much work should have been completed by a point in time based on the plan.
What is another term for Earned Value?
Budgeted Cost of Work Performed.
What is the definition of Earned Value?
How much work was actually completed at a given point in the schedule.
What is another term for Actual Cost?
Actual Cost of Work Performed
What is the definition of Actual Cost?
The money spent during a period of time.
What is the definition of Cost Variance?
The difference between what was planned to be spent and what was actually spent.
What is the definition of Schedule Variance?
The difference between where we planned to be in the schedule and where we actually are in the schedule.
What is the definition of Cost Performance Index?
The ratio of the actual cost to the planned cost.
What is the defintion of Schedule Performance Index?
The ratio of the actual project performance to the planned performance.
What is the definition of Estimate at Completion?
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.
What is the definition of Estimate to Completion
Projecting the remaining spend on a project based on past performance.
What is the definition of Variance at Completion?
The difference between what was budgeted and what was actually spent.
What is the definition of To-Complete Performance Index?
The performance that must be achieved in order to meet the approved project budget and/or schedule.
What is the definition of a Fixed Cost?
A cost that stays the same throughout the life of the project.
What is the definition of a Variable Cost?
Costs that may vary over the life of the project.
What is the definition of a Direct Cost?
Costs that are billed directly to the project.
What is the definition of an indirect cost?
Costs that are shared and allocated among several projects.
What is the definition of a sunk cost?
Costs that have already been spent on the project and are unrecoverable.
What is the definition of an Opportunity Cost?
The cost of the loss of the potential benefit from alternative projects that were not selected.
