Control Costs

Question 1

What is the purpose of the Control Costs process?

Answer 1

To monitor the status of the project, to update project budget and manage changes to the cost baseline.

Question 2

What are the outputs of Control Costs Process?

Answer 2

1) Work Performance Information, 2) Change Requests, 3) Costs Forecasts, 4) Project Mgmt Plan Updates, 5) Project Document Updates, 6) OPA Updates

Question 3

What are the tools and techniques to Control Costs?

Answer 3

1) Earned Value Mgmt, 2) Costs Forecasts, 3) To-complete Performance Index (TCPI), 4) Performance Reviews, 5) Project Mgmt Software, 6) Reserve Analysis

Question 4

What is Earned Value Management (EVM)?

Answer 4

Methodology that combines scope, schedule, and resource measurements to assess project and progress. The difference between Planned Value and Earned Value.

Question 5

What is Planned Value (PV)?

Answer 5

The authorized budget assigned to scheduled work which does not include Management Reserve.

Question 6

What is Budget at Completion (BAC)?

Answer 6

The total Plan Value for the project.

Question 7

What is Earned Value (EV)?

Answer 7

Measure of work performed expressed in terms of the budget authorized for that work which is used to calculate the percentage complete of a project.

Question 8

What is Actual Costs (AC)?

Answer 8

Costs incurred for the work performed on an activity during a specific time period.

Question 9

What is Estimate of Completion (EAC)?

Answer 9

Expected total cost (forecast) at the end.

Question 10

What is Estimate to Complete (ETC)?

Answer 10

Expected remaining costs (now until end).

Question 11

What is Variance of Completion (VAC)?

Answer 11

Expected variance over/under budget.

Question 12

What is Cost Management Plan?

Answer 12

Plan that describes how costs will be planned, structured and controlled.

Question 13

How do you calculate Cost Variance (CV)?

Answer 13

EV - AC = CV (Negative bad, Positive good)

Question 14

How do you calculate Schedule Variance (SV)?

Answer 14

EV - PV = SV (Negative bad, Positive good)

Question 15

How do you calculate Cost Performance Index (CPI)?

Answer 15

EV / AC = CPI (Under 1 is bad, Over 1 is good)

Question 16

How do you calculate Schedule Performance Index (SPI)?

Answer 16

EV / PV = SPI (Under 1 is bad, Over 1 is good)

Question 17

How do you calculate Estimate to Complete (ETC)?

Answer 17

EAC - AC = ETC (Value of work remaining)

Question 18

How do you calculate Variance at Completion (VAC)?

Answer 18

BAC - EAC = VAC (Negative is bad, Positive is good)

Question 19

How do you calculate to Complete Performance Index (TCPI) within budget?

Answer 19

(BAC - EV) / (BAC - AC) = TCPI (Use 80% of time)

Question 20

How do you calculate to Complete Performance Index (TCPI) outside of budget?

Answer 20

(BAC - EV) / (EAC - AC) = TCPI (Use if original budget is not possible)

Question 21

How do you calculate Estimate at Completion (EAC) with atypical variance (not continue or budget rate)?

Answer 21

AC + (BAC - EV) = EAC (Actual cost plus work remaining, is not based on past performance)

Question 22

How do you calculate Estimate at Completion (EAC) with typical variance?

Answer 22

BAC / CPI = EAC (Use this calculation if project is on track, is based on past performance)

Question 23

How do you calculate Estimate at Completion (EAC) with assume poor performance but need to hit firm completion date?

Answer 23

AC + [(BAC - EV) / (CPI * SPI)] = EAC

Question 24

What is To Complete Performance Index (TCPI)?

Answer 24

A measure of cost performance that is acquired to be achieved with the remaining resources in order to meet a specified management goal.