Project Cost Mgmnt Flashcards
Estimate of Costs
Process of developing an approximation of the monetary resources to complete project activities.
Expresses in units if currency.
Accuracy of estimates will increase as the project progresses
Rough Order Magnitude
ROM
Cost = unit rate x usage
Analogous Estimating
Uses parameters to measure cost. Used historical info and expert judgement.
Parametric Estimating
Used statistical relationship between historical data and other variables to calculate an estimate.
Bottom-up Estimating
Method of estimating a component of work. Cost of individual work packaged is estimated with greatest level of specified detail. Detailed cost is then rolled up to higher levels for subsequent reporting and tracking.
Determine Budget
Process of aggregating the estimated costs of individual activities or with packages to establish an authorized cost baseline
S-Curve Budget
Displays cumulative curve of projects total budget
Planned Value (PV)
Authorized budget assigned to the work to be accomplished for the activity or WBS
Earned Value (EV)
Work performed expressed in terms of the approved budget assignment to work for an activity or WBS
Compares the baseline plan to actual schedule and cost performance
Actual Cost (AC)
Total cost actually incurred and recorded in accomplishing work performed for an activities or WBS component
Schedule Variance (SV)
Measure of schedule performance on a project
Cost Variance (CV)
Measure of cost performance
Schedule Performance (SPI)
Measure of progress achieved compared to progress planned on a project
Cost Performance Index (CPI)
Measure of the value of work completed compared to the actual cost or progress made on the project
Variance Analysis
Used to assess magnitude of variation to original cost baseline
