Project Cost Management Notes PMBOK6 -Part 2

Free PMP Flashcards and Notes on Project Cost Management of PMBOK6 Part 2

Card : 1

Define "ESTIMATE COSTS" process 
This process is related to estimating cost for each identified activity of the project. 

 

Card : 2

INPUTS TO ESTIMATING COSTS
  • Scope Baseline
  • Project Schedule
  • Resource Plan
  • Risk Register
  • Historical Records and Lessons Learned
  • Enterprise Environmental Factors

 

Card : 3

What is Scope Baseline:

 Scope baseline includes the

  • project scope statement,
  • WBS and WBS dictionary.

It helps in allowing the project manager to know what is in scope and what is out-of-scope.

 

Card : 4

What is Project Schedule

The project schedule contains the list of activities, the allocated resources and the time when work will occur.

 

Card : 5

What is  Resource Plan

The system to reward project members, rates of labor required and a number of resources required for the project and their cost are arrived at by the resource plan.

 

Card : 6

What is LIFE CYCLE COSTING

Life cycle costing is taking into consideration the whole life of the product, and not just the cost of the project.includes mainteanace,consumables etc in costing

 

Card : 7

What is VALUE ANALYSIS

Value Analysis concurs with value engineering.

focuses on decreasing the cost of the project without any degradation in scope and performance levels.

 identifications of less costly resources and activities without compromising performance

 

Card : 8

What is control risk

Any risk related to cost such as procurement risk, cost management risk is termed as cost risk. This risk is not just covered in risk management and requires to be covered in all phases of the project.

 

Card : 9

What are benefit of Earned Value Measurement (EVM)?
  • Provides the ability to the project manager to track the project cost very well
  • Allows the project manager to look at other more productive aspects of the project
  • Does not allow any space for guestimation of project progress numbers 
  • integrates cost, time and the work done (or scope) and can be used to forecast future performance and project completion dates and costs.

 

Card : 10

What is BAC - Budget at Completion (the budget)

The total BUDGET of the TOTAL project

 

Card : 11

What is PV - Planned Value -

The estimated value of work planned to be done as of today

 

Card : 12

What is EV - Earned Value 

The estimated value of work actually accomplished as of today

 

Card : 13

What is  AC - Actual Cost (total cost) -

What is  AC - Actual Cost (total cost) -

 

Card : 14

What is EAC - Estimate at Completion

A current forecast of total project cost

 

Card : 15

What is ETC - Estimate to Complete -

An estimate of additional cost required to finish the project (a forecast)

 

Card : 16

What is VAC - Variance at Completion 

A forecast of over or under budget at the end of the project

 

Card : 17

What is Cost variance (CV)

The amount of budget deficit or surplus at a given time, expressed as the difference between the earned value and actual cost

                      CV = EV – AC

 

Card : 18

  Interpretation of CV Results

  Interpretation of CV Results

  • If CV is negative, the task is over budget.
  • If CV is zero, the task is on budget.
  • If CV is positive, the task is under budget.

 

Card : 19

What is Schedule variance (SV)

The amount by which the project is ahead or behind the planned delivery date at a given point in time 

                    SV = EV – PV

 

Card : 20

Interpretation of Results

Interpretation of Results

  • If SV is negative, the task is behind schedule.
  • If SV is zero, the task is on schedule
  • If SV is positive, the task is ahead of schedule.

 

Card : 21

What is variance at completion (VAC)

  The projection of budget deficit or surplus at the project completion,

  It is difference between the Budget at completion and the estimate of completion

 

Card : 22

What is Budgeted Cost of Work Scheduled (BCWS)

 The authorized, time-phased budget assigned to accomplish the scheduled work.

 

Card : 23

What is Budgeted Cost of Work Performed (BCWP):

  The measure of work performed at a specific point in time, expressed in terms of the approved budget authorized for that work.

 

Card : 24

What is Actual Cost of Work Performed (ACWP)

            ACWP is not rocket science.  It is simply the cost of the work to date.

 

Card : 25

What is Actual Cost of Work Performed (ACWP)

            ACWP is not rocket science.  It is simply the cost of the work to date.

 

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