Cost Mgmt Flashcards
What is the process of cost mgmt?
Estimate costs
Determine budget
Control costs
In which process is the cost mgmt plan created?
The cost mgmt plan is created in integration mgmt as a part of the Develop Project Mgmt Plan process
What are key outputs of the Estimate Costs process
Activity cost estimates
Updates to the project mgmt plan and project documents
What are key outputs of the Determine Budget process?
Cost baseline
Funding requirements
What are key outputs of the Control Costs process?
Work performance measurements
Budget forecasts
Change requests
Updates to the project mgmt plan and project documents
Name inputs to Estimate Costs process
Scope baseline
Project schedule
Human resource plan
Enterprise environmental factors
Organizational process assets
Risk register
What are main approaches to cost or schedule estimating?
Analagous estimating
Bottom-up estimating
Parametric estimating
Three-point estimates
One-time estimates
What is analogous estimating?
Top-down estimating that uses expert judegement and looks at the past to predict the future
“The last three projects cost $25,000, 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 WBS), which are then rolled up into project estimates
What is parametric estimating?
Calculating estimates using historical info (e.g. cost per line of code, hours per installation)
What is earned value measurement?
A method of measuring project performance tha tlooks at the value earned for work accomplished.
It can be used to predict the future cost performance and project ocmpletion dates.
What is range for rought order of magnitude estimate?
+/- 50%
What is the range for a budget estimate?
-10% to +25% from actual
What is the range for a definitive estimate?
+/- 10% from actual
What is the difference between a cost budget and a cost baseline?
The cost budget adds mgmt reserve to the cost baseline
What is the formula for cost variance
CV=EV-AC
What is the formula for schedule variance?
SV=EV-PV
What is the formula for cost performance index
CPI=EV/AV
What is the formula for schedule performance index?
SPI=EV/PV
What are formulas for estimate at competion?
EAC=AC+Bottom-up ETC
EAC=BAC/CPI
EAC=AC+(BAC-EV)
EAC=AC+(BAC-EV)/(CPI*SPI)
what is the formula for estimate to completion
ETC=EAC-AC
What is the formula for variance at completion?
VAC=BAC-EAC
What is the formula for To Complete Performance Index?
TCPI = (BAC-EV)/(BAC-AC)
Describe a variable cost and a fixed cost chargeable to the project
Variable cost: a cost that varies with the amount of work done on the project
Fixed cost: A cost that does not vary with the amount of work done on the project
Describe a direct cost and an indirect cost chargeable to the project?
Direct cost: A cost directly attributable to the project
Indirect Cost: Overhead costs
WHat does life cycle costing mean?
Considering the future cost of operating and maintaining the project or deliverable over its life when planning and managing the project
What is value analysis?
Finding a less costly way of doing essentiall the same work
