Project Cost

Estimating method which used historical info (aka top-down) estimating?

Estimating method which starts from zero accounts for each component of the WBS (most time consuming).

Broad estimating used used early in planning process (and in top-down) also -10 to +25%.

A estimating method using database information (typically software driven) to create cost for project.

An allowance to account for overruns in costs. Used at the PM discretion.

Costs are parallel to each WBS work package. Then aggregated to correspinding control account, then aggregated to the proejct costs.

A time-lapse exposure of when the project money is spent in relation to cumulaltive values of the work completed in the project.

Cost aggregation achieved by assigning specific dollar amounts for each activity, or (more likely) each wp in the WBS.

System which examines any changes associated with scope changes, materials, resources or overall associated impact on project costs.

Dictates how low-cost variances will be managed.

Money spent to recover from low quality, injuries, rework etc. aka the nonconformance to quality cost.

Cost performance Index formula (project based on financial performance) formula is?

Cost variance formula (difference in earned amount and actual cost).

Variance means

Peformance means

Money spent to obtain the expected level of quality and includes training, testing, safety etc.

This estimate method (one of most accurate) Used in planning process with WBS, range of variance -5% to +10% accuracy in estimate.

Costs attributed directly to the project work, and cannot be shared with other projects.

Physical work completed to date and authorized budget for that work. A % of the BAC that represents actual work completed. "The King"

Forecasting formulas which predict the likely completed costs of each project (based on current scenarios)

Forecasting formulas that predicts how much funding the project needs to be completed. 3 formulas based on conditions experienced in project

Costs that remain cosntant throughout the life of the project.

An organizational approach to managing cash flow, against deliverables or milestones.

Costs that are shared across more than 1 project (electricity, software licenses, training room)

An event that will likely happen, but it is not known when.

An approach assumes the more something is done, the less it will cost. Peope learn to do it faster and better.

A market condition in which the actions of one vendor affect the actions of all others.

Total cost of the opportunity that is refused to realize an opposing oppoertunity.

An estimating method using parametric model to determine was costs are needed for project. cost per hour etc...

The work scheduled and budget authorized to accomplish the work. % of the BAC reflects where project SHOULD be at this point in time.

The final variance - discovered only at projects completion. Formula?

Statistical approach to determining what future values may be. Creates predicitons (relies on statistical math) to predict future values.

Cost reserves for the unknown-unknowns with a project.

Rough estimate used during initiating process and in top-down estimates. -25% to +75% range.

Rough estimate used during initiating process and in top-down estimates. -25% to +75% range.

Measures the project based on its schedule performance. Formula and name.

The difference between the Earned Valued and Planned Value?

Many vendors CAN provide, but you prefer to work with only one.

Only one vendor can provide what you need to purchase.

Monies which are already invested in a project?

Costs that change based on conditions applied in the project (ex, number of participants, supply demand of materials)

Difference between what is expected and what was experienced in the project.

Forecasting formula which predicts how much a variance project will have based on CURRENT conditions in the project.

TCPI (To complete performance index) for budget at completion?

TCPI (To complete performance index) for newly created estimate at completion?