Capitulo: 7. PROJECT COST MANAGEMENT Flashcards

1
Q

What is the process of cost management?

A

Plan Cost Management
Estimate Costs
Determine Budget
Control Costs

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2
Q

What is the output of the Plan Cost
Management process?

A

Cost management plan

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3
Q

What are the key inputs to the Estimate
Costs process?

A

Cost management plan
Quality management plan
Scope baseline
Lessons learned register
Project schedule
Resource requirements
Risk register
Enterprise environmental factors
Organizational process assets
Project management costs

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4
Q

What are the key outputs of the Estimate
Costs process?

A

Cost estimates
Basis of estimates
Updates to project documents

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5
Q

What are the key outputs of the
Determine Budget process?

A

Cost baseline
Project funding requirements
Updates to project documents

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6
Q

What are the key outputs of the Control
Costs process?

A

Work performance information
Cost forecasts
Change requests
Updates to project management plan
and project documents

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7
Q

What does life cycle costing mean?

A

Considering costs over the entire life
of the product, not just the cost of the
project to create the product

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8
Q

What is value analysis?

A

Finding a less costly way of doing
essentially the same work (also known as
value engineering)

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9
Q

What three knowledge areas use the
concept of cost risk?

A

Cost
Procurement
Risk

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10
Q

How do variable costs differ from fixed
costs?

A

Variable costs change with the amount
of production or amount of work done
on the project
Fixed costs do not change as production
changes

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11
Q

What is a direct cost?

A

Direct cost: A cost that is directly
attributable to the work on the project

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12
Q

What is an indirect cost?

A

Indirect cost: Overhead costs or costs
incurred for the benefit of more than
one project

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13
Q

What is the difference between a
contingency reserve and a management
reserve?

A

Contingency reserves are used for
known risks, which are specifically
identified risks
Management reserves are used to
accommodate unknown or unidentified
risks

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14
Q

What is cost of quality?

A

The cost of work added to the project to
accommodate quality efforts

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15
Q

What is the difference between a cost
budget and a cost baseline?

A

The cost budget adds management
reserves to the cost baseline

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16
Q

How can progress reporting help the
project manager?

A

It can help control schedule and costs
It can help the project manager assess
whether the project is on track through
earned value analysis

17
Q

What is earned value analysis, and how
is it used?

A

It is used in performance reviews to
measure project performance against the
scope, schedule, and cost baselines
Using the work performance
information gathered through earned
value analysis, a project manager can
create reports, including cost forecasts,
and other communications related to the
projects progress; it may also result in
change requests

18
Q

What combined baselines are called the
performance measurement baseline?

A

Scope, schedule, and cost baselines

19
Q

What is the difference between planned
value and earned value?

A

Planned value is the estimated value of
the work planned, as of today
Earned value is the estimated value of
the work actually accomplished, as of
today

20
Q

What is actual cost?
What is budget at completion?

A

The actual cost incurred for the work
accomplished, as of today

The projects planned budget; indicates
what the end cost of the project would
be if everything went according to plan