Introducing Project Cost Management Flashcards
Actual Costs
Used in earned value measurements; the actual cost of the work performed.
Analogous Estimating
This relies on historical information to predict estimates for current projects. Analogous estimating is also known as top-down estimating and is a form of expert judgment.
Bottom-up Estimating
A technique where an estimate for each component in the WBS is developed and then totaled for an overall project budget.
Budget At Completion
The predicted budget for the project; what the project should cost when it is completed.
Chart Of Accounts
A coding system used by the performing organization’s accounting system to account for the project work.
Cost Baseline
This shows what the project is expected to spend. The purpose of the cost baseline is to measure and predict project performance.
Cost Budgeting
A process of assigning a cost to an individual work package.
Cost Change Control
This is part of the integrated change control system and documents the procedures to request, approve, and incorporate changes to project costs.
Cost Control
An active process to control the causes of cost changes, to document cost changes, and to monitor cost fluctuations within the project.
Cost Estimating
The process of calculating the costs, by category, of the identified resources to complete the project work.
Cost Management Plan
Details how variances from the project costs will be managed.
Cost Variance
The cost variance (CV) is the difference between the earned value (EV) and the actual cost (AC).
Earned Value
The value of the work that has been completed and the budget for that work, the equation for which is EV = %complete x BAC.
Earned Value Management
Earned value management integrates scope, schedule, and cost to give an objective, scalable point-in-time assessment of the project.
Estimate At Completion
A hypothesis of what the total cost of the project will be; calculated to predict what the new estimate at completion will be.
Estimate to Complete
Represents how much more money is needed to complete the project work. Its formula is ETC = EAC - AC.
Estimating Publications
A commercial reference to help the project estimator confirm and predict the accuracy of estimates.
Parametric Modeling
A mathematical model based on known parameters to predict the cost of a project.
Planned Value
The worth of the work that should be completed by a specific time in the project schedule.
Risk
An unplanned event that can have a positive or negative influence on the project success.
Schedule Performance Index
The SPI reveals the efficiency of work. The closer the quotient is to 1, the better. Its equation is SPI = EV/PV
Schedule Variance
The difference between the planned work and the earned work.
Top-down Estimating
A technique that bases the current project’s estimate on the total of a similar project.
Variance
The difference between what was planned and what was experienced; typically, used for costs and schedules.
