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been a common theme for this project The project manager should choose the approach that best matches what has been experienced in the project The purpose of a cost baseline is to measure performance, or found with a baseline will predict the expenses over the life of the project Fixed costs B
C
C 9 Scope creep C EVM, in regard to cost management, is concerned with the relationships between three formulas that reflect project performance It is calculated by dividing EV by the actual costs spent on the project00 does not necessarily mean that the project is performing well 12 Chapter 7: Introducing Project Cost Management Cost per unit = $78 Project A Project B ³ Learning curve This approach is simple: the cost per unit decreases the more units workers complete; this is because workers learn as they complete the required work Budget estimate C For maximum value, create your own flashcards based on these definitions and review daily  Choice A allows for 50 percent completion when the work begins or - products 50 percent when the work is completed Before you begin the cost budgeting process, what is needed? A Regression analysis creates quantitative predictions based on variables within one value to predict variables in another Rough order of magnitude B ³ Double-declining balance is considered accelerated depreciation ³ Bottom-up budgeting This approach is the most reliable, though it also takes the longest to create For example, a project manager has overestimated the competence of the workers to complete the project work Which one of the following methods of estimating will provide the most accurate estimate? A $29,000 B79 24 Self Test 33 10 The cost of the historical project is applied to the cost of the current project, taking into account the scope or to developing size of the current project as well as other known variables The time to recover the costs of the project is which one of the following? A A project with a CPI of Because the project team is not performing at the level the project manager had expected, work is completed late or solid or store. a in a faulty manner Costs estimates or 2 dock project schedule B The EAC formula for these instances is: EAC=AC+((BAC-EV)/CPI) The cost management plan controls how the BAC may be adjusted Variances that cross a given threshold may require the project manager to create a variance report to explain the variance, why it has happened, and what corrective action has been applied to prevent the variance from recurring The estimate is typically quantitative or ... colorful can be presented in detail against the WBS components or summarized in terms of a grand total, by phases of the project, or by major deliverables In other words, a company performing projects for other organizations may do a cost estimate to see how much the project is going to cost to complete WBS C This is a form of expert judgment that uses a topdown approach to predict costs WBS estimate 9
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