Term
| What is the process of cost management? |
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Definition
| Plan Cost Management/ Estimate Costs /Determine Budget/ Control Costs |
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Term
| What is the key output of the plan cost management process? |
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Definition
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Term
| What are the key inputs to the estimate Costs process? |
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Definition
| Cost management plan/ Scope baseline/ Project schedule/ Human resources management plan/ Risk register/ Enterprise environmental factors/ Organizational process assets |
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Term
| What are the key outputs of the Estimate costs process? |
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Definition
| Activity cost estimates/ Basis of estimates/ Updates to project documents |
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Term
| What are the key outputs of the Determine Budget process? |
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Definition
| Cost baseline/ Project funding requirements/ Updates to project documents |
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Term
| What are the key outputs of the control Costs process? |
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Definition
| Work performance information/ Cost forecasts/ Change request/ Updates to project management plan and project documents |
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Term
| What are the main approaches to cost or schedule estimating? |
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Definition
| One point estimating/ Analogous estimating/ Bottom up estimating/ Parametric estimating/ Three point estimating |
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Term
| What is analogous estimating? |
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Definition
| Top down estimating that uses expert judgment and historical information to predict the future) for example, ”The last here projects cost $25,000, or took six months and so should this one”) |
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Term
| What is bottom up estimating? |
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Definition
| Creating estimates based on the details of the project (e.g., from the bottom of the work breakdown structure), which are then rolled up into project estimates |
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Term
| What is parametric estimating? |
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Definition
| Calculating estimates by looking at the relationship between variables on an activity (e.g., cost per line of code, hours per installation, industry requirements, standard metrics, or other sources |
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Term
| What is earned value measurement, and how it is used? |
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Definition
| A method of measuring project performance that looks at the value earned for work accomplished, by reviewing project performance against the scope, schedule, and cost baseline. It can be used to predict future cost performance and project completion dates |
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Term
| What is the typical range for a rough order of magnitude (ROM) estimate? |
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Definition
| -25% to + 75% from actual |
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Term
| What is the typical range for budget estimate? |
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Definition
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Term
| What is the typical range for a definitive estimate? |
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Definition
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Term
| What is the difference between a cost budget and a cost baseline? |
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Definition
| The cost budget adds management reserves to the cost baseline |
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Term
| What is the formula for cost variance? |
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Definition
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Term
| What is the formula for schedule variance? |
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Definition
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Term
| What is the formula for cost performance index? |
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Definition
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Term
| What is the formula for schedule performance index? |
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Definition
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Term
| What are the formulas for estimate at completion? |
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Definition
AC + Bottom-up ETC= EAC
BAC/CPI© = EAC
AC + (BAC-EV)=EAC
AC + [(BAC-EV)/(CPI© X SPI©)]=EAC |
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Term
| What is the formula for estimate to complete? |
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Definition
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Term
| What is the formula for variance at completion? |
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Definition
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Term
| What is the formula for to complete performance index? |
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Definition
| [(BAC – EV)/(BAC – AC)]=TCPI |
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Term
| How doe variable cost differ from fixed costs? |
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Definition
Variable cost vary with amount of production or work done on the project
Fixed cost do not vary with the amount of production or work done on the project |
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Term
What is a direct cost?
What is an indirect cost? |
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Definition
Direct cost: A cost that is directly attributable to the project
Indirect cost: Overhead cost or cost incurred for more than one project |
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Term
| What does life cycle cost mean? |
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Definition
| Considering cost over the entire life of the product, not just the cost of the project to create the product |
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Term
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Definition
Finding a less costly way of doing essentially the same work
(also known a value engineering) |
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