Chapter 8 Flashcards
(6 cards)
1
Q
In which two ways can the cost planning process occur?
A
Top-down costing
Groud-up costing
pp. 202
2
Q
What are some techniques for financial evaluation (analysing)?
A
Payback method (easy)
Discounted cash flow
Net present value
pp. 210
3
Q
What are the different estimating time techniques?
A
Parametric estimation (WBS etc)
As….but….s (experience of similar projects)
Forecasts (best guess)
Wishful thinking
4
Q
What is a business case?
A
The justification of undertaking a project with purpose to obtain management commitment and approval.
5
Q
What are some major elements of cost?
A
Time Materials Capital equipment Indirekt expenses Overheads Contingency
6
Q
What are the Prince causes for costing by wishful thinkig?
A
Optimism bias
Politiks
Improper use of estimations
Faciliteter to be systematik about planning
