7.0 Project Cost Management

Question 1

what is 7.0 project cost management?

Answer 1

includes the processes involved in:
1. planning
2. estimating
3. budgeting
4. financing
5. funding
6. managing and
7. controlling costs
so that the project can be completed within the approved budget

Question 2

what are the processes of 7.0 project cost management?

Answer 2

7. 1 plan cost management
8. 2 estimate costs
9. 3 determine budget
10. 4 control costs

Question 3

what processes can be combined in the case of smaller scope projects?

Answer 3

7.2 estimate costs and 7.3 determine budget

Question 4

when is the ability to influence costs the greatest?

Answer 4

in the earliest stages of the project

Question 5

what are the key concepts for project cost management?

Answer 5

1. Primarily concerned with the cost of the resources needed to complete project activities
2. Should consider the effect of project decisions on costs related to using, maintaining and supporting the product
3. Different stakeholders measure costs in different ways and at different times

Question 6

what are trends and emerging practices in 7.0 project cost management?

Answer 6

1. the expansion of earned value management (EVM) to include the concept of earned schedules (ES)

Question 7

what is earned schedule (ES) theory?

Answer 7

1. replaces schedule variance measures with ES and actual time (AT)
2. ES > 0 means the project is ahead of schedule

Question 8

what are tailoring considerations for 7.0 project cost management?

Answer 8

1. knowledge management
2. estimating and budgeting
3. earned value management
4. use of agile approach
5. governance

Question 9

what are considerations for agile/adaptive environments for 7.0 project cost management?

Answer 9

1. detailed cost calculations may not be beneficial
2. lightweight estimation methods can be used to generate fast, high level forecasts of project labor costs - easily adjusted as changes arise
3. detailed estimates for short term planning
4. strict budgets results in scope and schedule adjustments to stay within cost