Cost Management Ch.7 Flashcards
What is Estimate Cost Process?
How much you expect each work activity to cost. Each activity is estimated for it’s time, materials, and other known factors.
What is Determine budget process?
Where all the estimates are added up and baselined.
What is Control Costs Process?
Tracking the actual work to see what adjustments need to be made.
What are the three processes in the Cost management process group?
- Estimate Cost Process
- Determine Budget Process
- Control Cost Process
What are the five types of Estimating?
- Bottoms-Up Estimating
- Analogous Estimating
- Expert Judgement
- Parametric Estimating
- Three Point Estimating
What is Expert Judgement?
Comes from your team members who are familiar with the work to be done
What is Parametric Estimating?
Plugging data into software to estimate for you
What is Analogous Estimating?
When you look at similar previous projects and use the data from them
What is Three Point Estimating?
When you come up with three estimates and average them together.
- Pessimistic
- Optimistic
- Realistic
What is Bottoms-Up Estimating?
Breaking down the complex activities into simpler pieces and using the four other tools to estimate for the smaller pieces.
What is Benefit Cost Ratio?
How much money a project will make vs. How much it will cost to produce
What is Net Present Value?
The actual value at a given time minus all of the costs.
What is Opportunity Cost?
The amount of money the project not chosen would have made
What is Internal Rate Of Return?
The amount of money a project will return to the company funding it.
What is Depreciation?
The rate at which your project loses value over time.
