Ch.7 Cost Flashcards
What is the process of cost management?
- Plan cost management
- Estimate costs
- Determine budget
- Control costs
What is the key output of the plan cost management process?
Cost management plan
What are the key inputs of the estimate cost process?
- Cost management plan
- Scope baseline
- Project schedule
- Human resource management plan
- Risk register
- Enterprise environmental factor
- Organizational process assets
What are the key outputs of the estimate cost process?
- Activity cost estimates
- Basis of estimates
- Updates to project documents
What are the key outputs of the determine budget process?
- Cost baseline
- Project funding requirements
- Updates to project documents
What are the key outputs of the control cost process?
- Work performance information
- cost forecasts
- Change requests
- Update to project management plan and project documents
What are the main approaches to cost or schedule estimating?
- one-point estimating
- Analogous estimating
- Bottom-up estimating
- Parametric estimating
Three-point estimating
That is analogous estimating?
Top-down estimating that uses expert judgment and historical information to predict the future. (for example, the last three projects cost $25000 or took six months, and so should this one)
What is bottom-up estimating?
Creating estimates based on the details of the project (e.g., from the bottom of the work breakdown structure) which are then rolled up into project estimates.
What is parametric estimates?
Calculating estimates by looking at the relationship between variables on the activity. (e.g., cost per line of the code, hours per installation), based on historical information, industry requirement standard metrics, or other sources
What is earned value measurement, and how is it used?
A method of measuring project performance that looks at the value earned for work accomplished, by reviewing the project performance against the scope, schedule, and cost baselines
It can be sued to predict future cost performance and project completion dates.
What is the typical range for a rough order of magnitude (ROM) estimates?
-25 to +75 percent from the actual.
What is the typical range for a budget estimate?
-10 percent to +25 percent from actual.
What is the typical range for a definitive estimate?
-/+ 10 percent from actual
What is the difference between a cost budget and a cost baseline?
The cost budget adds management reserves to the cost baseline
