Project Planning

Question 1

Project budget

Answer 1

the estimated monetary resources needed to achieve a project’s goals and objectives.

1. typically created in the initiation and planning phases

Question 2

Direct costs

Answer 2

costs for items that are necessary in order to complete your project.

Question 3

Indirect costs

Answer 3

(overhead costs)

costs for items which do not directly lead to the completion of your project but are still essential for the project team to do their work.

Question 4

Cash flow

Answer 4

the inflow and outflow of cash on your project.

Question 5

Two of the most common types of expenses

Answer 5

1. CAPEX
2. OPEX

Question 6

CAPEX

Answer 6

organization’s major, long-term, upfront expenses, such as buildings, equipment, and vehicles. They are generally for assets that the company will own and keep.

Question 7

OPEX

Answer 7

short-term expenses that are required for the day-to-day tasks involved in running the company, such as wages, rent, and utilities.

Question 8

Contingency reserves (buffers)

Answer 8

1. funds added to the estimated project cost to cover identified risks
2. To determine the amount of your contingency reserves, you will need to go through the risk management process and identify the risks that are most likely to occur.

Question 9

Management reserves

Answer 9

1. contingency reserves are used to cover the costs of identified risks, management reserves are used to cover the costs of unidentified risks.
2. generally a percentage of the total cost of the project. (5–10%)

Question 10

procurement

Answer 10

obtaining all of the materials, services, and supplies required to complete the project.