PJM - Objective 2.1

Question 1

Net fee determined by subtracting consultants’ fees from the gross fee for the project.

Answer 1

Net Service Revenue (NSR)
Net Revenue

Question 2

Labor hours and dollar amounts planned at project initiation.

Answer 2

Planned cost

Question 3

Labor hours and dollar amounts spent as of a current date.

Answer 3

Job- to Date (JTD)

Question 4

Labor hours and dollar amounts estimated from current date to project completion.
*Single most important factor used in project tracking and monitoring for project success.

Answer 4

Estimate -to-Complete (ETC)

Question 5

JTD plus ETC labor hours and dollar amount estimated at project completion.

Answer 5

Estimate-at-Completion (EAC)

Question 6

Over/Under calculation indicating labor hours and dollar amounts at project completion relative to planned estimates

Answer 6

Planned Estimate at completion

Question 7

Current work in place for the project, phase, or task, expressed as a subjective percent complete and not based on the percentage of labor or dollar amounts

Answer 7

Percent Complete

Question 8

(Direct Labor + Overhead)/ Direct Labor

Answer 8

Break Even (multiplier)

Question 9

Overhead/Direct Labor

Answer 9

Overhead (multiplier)

Question 10

Current subjective percent complete/ Direct Labor

Answer 10

Effective Multiplier

Question 11

Firm wide standard target multiplier, including profit target

Answer 11

Target

Question 12

Net Service Revenue (NSR)/Planned Cost

Answer 12

Planned Multiplier

Question 13

Total NSR/EAC labor dollars

Answer 13

Estimate at Completion (EAC) Multiplier

Question 14

Amount billed to client based on contract compensation amounts and percent complete.

Answer 14

Billed/invoiced amounts

Question 15

Revenue recognized in the accrual accounting system based on subjective percent complete X net service revenue

Answer 15

Earned Revenue Amounts

Question 16

Amounts billed to the client but not recognized as earned revenue in the accrual accounting system

Answer 16

Billed-not-Earned (BNE)

Question 17

Amounts recognized as earned revenue in the accrual accounting system but not billed to the client.

Answer 17

Earned-not-Billed (ENB)

Question 18

What two multipliers are used to see where the project is now, where it is projected to be at the end of the project, and what needs to be adjusted to bring the project back within budget?

Answer 18

1.) Effective Multiplier
2.) Est. at Completion (EAC) Multiplier

Question 19

Raw labor costs determined from bottom-up Project Work Plan

Answer 19

Planned Labor

Question 20

Raw labor costs expended on the project from the start date to the current date

Answer 20

Job to Date Labor (JTD)

Question 21

Raw labor costs estimated to be expended on the project from the current date to the project completion date.

Answer 21

Estimate-to-Complete Labor (ETC)

Question 22

The sum of JTD labor and ETC labor

Answer 22

EAC Labor (estimate-at-Completion)

Question 23

The Planned Labor Costs - (minus) the EAC Labor costs.

A positive amount projects less labor will be used at the end of the project than planned, resulting in a multiplier and profit above the target. Project is in good standing!

A negative number projects a multiplier and profit below target. Project is in serious trouble!

Answer 23

Planned - (minus) AEC

Compensation / Planned Cost = Planned Multiplier

Question 24

Project Work Planning

Answer 24

1.) Is key to establishing project budgets,
2.) determining schedules to perform the work,
3.) monitoring the progress as the project moves forward
4.) is essential to a firm’s success and must be supported by management.