Project Cost Management

Question 1

Cost Management Plan

Answer 1

• Describes how the project costs will be planned, structured, and controlled
• establish things such as the following:
  
  • Units of Measure
  • Level of precision
  • Level of accuracy
  • Organizational procedures links (link cost to WBS)
  • Control thresholds
  • Rules of performance measurement ( Ex: EVM)

Question 2

Funding Limit Reconciliation

Answer 2

• Think of this as balancing funding as you go
• Example is CSX forecast - Forecast is dictating schedule to fit cost into project duration and vice versa

Question 3

Progress Equations

Answer 3

• Cost Variance (CV)
• Schedule Variance (SV)

Question 4

Efficiency Indicators

Answer 4

• Cost Performance Index (CPI)
• Schedule Performance Index (SPI)

Question 5

Forecasting Equations

Answer 5

• Estimate at Completion (EAC)
• Estimate To Complete (ETC)

Question 6

• Cost Variance (CV)
• Schedule Variance (SV)

Answer 6

Progress Equations

Question 7

• Cost Performance Index (CPI)
• Schedule Performance Index (SPI)

Answer 7

Efficiency Indicators

Question 8

• Estimate at Completion (EAC)
• Estimate To Complete (ETC)

Answer 8

Forecasting Equations