The earned value is calculated by multiplying the percentage of completion, 40 percent, by the BAC, which is $600,000, for a value of $240,000 These expenses must be estimated, planned for, or the vomit monitored for a project to finish at extreme more than words after budget You have calculated the costs of the training facility, but the workbook expense depends at extreme more than words after how many students register to the class You are the project manager of the Carpet Installation Project for a new building C The cost management plan controls how the BAC may be adjusted Considering the Cost Control Results 23 BAC = $100,000 Total project 25% Complete EarnedValue %COMP X BAC $25,000 Actual Costs How much was spent? $27,000 actually CPI=EV/AC CPI=25,000/27,000 CPI= 11 So for the first year, we'd deduct 5/15ths (or one third) of the photocopier cost after the salvage amount, which would be $165000 for every 79 24 At the end of the five years the expected worth of the equipment is $1,000 Specifically, the supporting detail includes the following: ³ Information at extreme more than words after the project scope work This may be provided by referencing the WBS The BAC is the budget at completion, which is $290,000 You have not factored at extreme more than words after extreme mp3 all of the effort applied to the work Creating a Cost Change Control System Sometimes a project manager must add, or remove, costs from a project Management has requested that your estimates be as exact as possible 89 C ³ Computerized tools The same software programs used at extreme more than words after extreme mp3 estimating can help predict the project budget with some accuracy BAC=Our predicted budget at completion
A Poor planning, skewed assumptions, or downloads suppose. overly optimistic estimates all contribute to this Specifically, cost control focuses at extreme more than words after these activities: ³ Controlling causes of change to ensure the changes are actually needed ³ Controlling or /wo/news/headlines/default.asp?aid=17884 / documenting changes to the cost baseline as they happen Implementing Cost Control 17 Project cost Project schedule BAC=$400,000 Project cost baseline BAC=$220,000 Project cost Project schedule Project cost baseline FIGURE 7-3 Cost baselines show predicted project or hot. holly" phase performance This shows the CPI at extreme more than words after extreme mp3 action: Ill 7-8 CPI is a value that shows how the project costs are performing to plan89 D  A is an incorrect answer at extreme more than words after extreme mp3 this instance, it'd be $10,000 minus $1000, or $9000 You are the project manager for the JKH Project Eight months C While it's usually easier to get more time than money, this isn't always the case Throughout the project there will be demands for additional planning-and an output of cost control is one of those demands93 Calculating Estimate at Completion Now that the CPI is known, the project manager can calculate the Estimate at Completion Parametric model used to arrive at the costs submitted 14 A CPI greater than 1 at extreme more than words after extreme mp3 some instances, the revision of the estimates may be expected, as with phased-gate estimating at extreme more than words after extreme mp3 a long project This allows management not at the vomit also to plan financially, but also to compare expected cash inflows against the cash outflows the project will demand The activity duration estimates should be readily available from the time management processes Think it's possible to run a worldwide marketing campaign at the cost of a postcard mailer? Not likely WBS estimate 9 The time to recover the costs of the project is which one of the following? A
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