Study Cards - Chapter 7 Flashcards
1
Q
The cost management Planning activities are…
A
- Estimate costs
- Determine budget
2
Q
The cost management M&C activities are
A
- Control costs
3
Q
Life cycle costing
A
- total cost of ownership for the lifetime of the product
4
Q
Value Engineering
A
- looking for substitutions to reduce cost, improve quality or both
5
Q
Estimate Costs - Key Outputs
A
- Activity Cost Estimates
- Basis of Estimates
6
Q
Estimate Costs - Techniques
A
- Duration estimate types
- Cost of quality
- PM estimating software
- Vendor bid analysis
7
Q
Estimate Costs - Key Inputs
A
- Scope Baseline
- Project Schedule
- Human Resource Plan
- Risk Register
8
Q
PERT for cost
A
Mean = (Co + 4Cml + Cp) / 6
Standard Deviation = (Cp - Co) / 6
Variance = σ² (Standard Deviation squared)
9
Q
Four types of cost are
A
- Fixed
- Variable
- Direct
- Indirect
10
Q
Analougous estimating
A
- Little Time and effort
- Less costly to create
- Less accurate
- Information may not be available
11
Q
Bottom-up estimatinge
A
- Improved accuracy
- Provides team buy-in to estimates
- Longer time and higher cost to create
- Subject to padded estimates
12
Q
Parametric estimating
A
- Can be more accurate than analogous
- Quicker than bottom-up
- Accuracy varies widely
- Can be more costly than analogous
13
Q
Rough order of magnitude
A
-50% to +50% (Initiating)
14
Q
Definitive estimate
A
-10% to +10% (Planning)
15
Q
Determine Budget - Key Inputs
A
- Activity cost estimates
- Schedule
- Scope baseline
