Cost Management Knowledge Area Flashcards
Define Cost Management
primarily focused on costs of resources needed to complete project work
Define Earned Schedule
an extension of Earned Value Management leveraged in conjunction with actual time (AT). ES is used to calculate an alternate form of SPI and SV using ES/AT and ES - AT respectively
Define Cost Estimates
estimation of cost of all resources applied and presented in either summary or detail form, may be represented as a range at varying levels of confidence and may include contingency and management reserves
Define Funding Limit Reconciliation
Adjustments made to project expenditures to account for funding limits (e.g. quarterly budgets)
Define Financing
acquiring funds (internally or externally) for the project
Define Cost Baseline
Authorized, time-phased, total project budget, excluding management reserves, which is used to measure, monitor & control cost performance
Define Variance Analysis
measuring the difference between planned and actual (used for both costs and duration)
Define Earned Value Management
an objective mathematical approach to measure cost and schedule performance
Define Contingency Reserves
amounts set aside by the PM to cover known risks and are included in the baselines (can take the form of time and money)
Define Management Reserves
amount management sets aside to cover unknown risks and not included in the baseline
Define Net Present Value
present value of a future income stream, offset against initial investment amount
Define Payback Value
amount of time needed to recoup the project’s investment
Inputs, T&Ts, Outputs of Plan Cost Management
Inputs: project charter, project management plan, EEF/OPAs
T&Ts: Expert judgment, data analysis, meetings
Outputs: cost management plan
Inputs, T&Ts, Outputs of Estimate Costs
Inputs: Project management plan, project documents, EEF/OPAs
T&Ts: expert judgment, analogous estimating, parametric estimating, bottom-up estimating, three-point estimating, data analysis, project management information systems, decision making
Outputs: cost estimates, basis of estimates, project documents updates
Inputs, T&Ts, Outputs of Determine Budget
Inputs: Project management plan, project documents, business documents, agreements, EEF/OPAs
T&Ts: expert judgement, cost aggregation, data analysis, historical information review, funding limit reconciliation, financing
Outputs: cost baseline, project funding requirements, project documents updates
