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
