Project Cost Management

Question 1

Project Cost Management

Answer 1

includes the processes involved in planning, estimating, budgeting, financing, funding, managing and controlling costs so that the project can be completed within the approved budget.

Question 2

What are the four Project Cost Management Processes?

Answer 2

1. Plan Cost Management
2. Estimate Costs
3. Determine Budget
4. Control Costs

Question 3

Plan Cost Management

Answer 3

the process of defining how the project costs will be estimated, budgeted, managed, monitored and controlled.

Question 4

Estimate Costs

Answer 4

The process of developing an approximation of the monetary resources needed to complete project work.

Question 5

Determine Budget

Answer 5

The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.

Question 6

Control Costs

Answer 6

The process of monitoring the status of the project to update the project costs and manage changes to the cost baseline.

Question 7

What is the key benefit of plan cost management?

Answer 7

It provides guidance and direction on how the project costs will be managed throughout the project.

Question 8

When is plan cost management performed?

Answer 8

Once or at predefined points in the project.

Question 9

What are the four inputs into plan cost management?

Answer 9

1. Project Charter
2. Project Management Plan
   
   • Schedule Management Plan
   • Risk Management Plan
3. Enterprise environmental factors
4. Organizational process assets

Question 10

Project Charter

Answer 10

The project charter provides the preapproved financial resources from which the detailed project costs are developed. The project charter also defines the project approval requirements that will influence the management of the project costs.

Question 11

What are two components of the project management plan?

Answer 11

1. Schedule Management Plan

2. Risk Management Plan

Question 12

Schedule Management Plan

Answer 12

The schedule management plan establishes the criteria and activities for developing, monitoring, and controlling the schedule. The schedule management plan provides processes and controls that will impact cost estimation and management.

Question 13

Risk Management Plan

Answer 13

The risk management plan provides the approach for identifying, analyzing and monitoring risks. The risk management plan provides processes and controls that will impact cost estimation and management.

Question 14

What are the enterprise environmental factors that influence the Plan Cost Management process?

Answer 14

1. Organization culture and structure can influence cost management.
2. Market conditions describe what products, services, and results are available in the regional and global markets.
3. Currency exchange rates for project costs are sourced from more than one country.
4. Published commercial information such as resource cost rate information is often available from commercial databases that track skills and human resource costs, and provide standard costs for material and equipment. Published seller price lists are another source of information.
5. Project management information system provides alternative possibilities for managing cost.
6. Productivity differences in different parts of the world can have a large influence on the cost of projects.

Question 15

What are the organizational process assets that can influence the Plan Cost Management process?

Answer 15

1. Financial controls procedures (e.g. time reporting, required expenditures and disbursement reviews, accounting codes, and standard contract provisions).
2. Historical information and lessons learned repository.
3. Financial databases.
4. Existing formal and informal cost estimating and budgeting-related policies, procedures and guidelines.

Question 16

What are three tools and techniques for Plan Cost Management?

Answer 16

1. Expert Judgement
2. Data analysis (alternative analysis)
3. Meetings