M3

Question 1

Inputs for Plan Cost Management

Answer 1

Project Charter
Project management plan
enterprise environmental factors
organizational process assets

Question 2

Tools and Techniques for Plan Cost Management

Answer 2

Expert Judgment
Data analysis
Meetings

Question 3

Outputs for Plan Cost Management

Answer 3

Cost management plan

Question 4

establishes policies, procedures, and documentation for the project cost management

Answer 4

Plan Cost Management

Question 5

a management control point where scope, budget, actual cost, and schedule are integrated and compared to earned value for performance measurement

Answer 5

Control Account

Question 6

Cost Management can include:

Answer 6

data collection
cost estimation
budgeting
cost accounting and cost control

Question 7

Common sources of costs:

Answer 7

labour
materials
subcontractors
equipment and facilities
travel and expenses

Question 8

types of cost

Answer 8

direct
indirect
recurring
non recurring
fixed
variable
normal
expedited

Question 9

the overall plan or guidance for the cost management knowledge area

Answer 9

Cost Management Plan

Question 10

Cost management plan can establish what?

Answer 10

units of measure
level of precision
level of accuracy
organizational procedure links
control thresholds
rules of performance measurements
reporting formats
process descriptions
additional details

Question 11

degree to which activity cost estimates will be rounded up or down

Answer 11

level of precision

Question 12

the acceptable range used in determining realistic cost estimates

Answer 12

level of accuracy

Question 13

how wbs will be linked to control accounts

Answer 13

organizational procedure links

Question 14

what agreed upon thresholds indicates action needs to be taken

Answer 14

control threshold

Question 15

level in the WBS in which measurement of control accounts will be performed, measurements techniques used (weighted milestones, fixed-formula, percent complete), specify EVM equations for calculating EACs

Answer 15

rules of performance measurement

Question 16

format and frequency for the various cost reports

Answer 16

reporting formats

Question 17

cost management processes are documented

Answer 17

process descriptions

Question 18

strategic funding choices, dealing with currency exchange rates, procedure for project cost recording

Answer 18

additional details

Question 19

create a reasonable budget baseline for the project

Answer 19

cost estimation processes

Question 20

creation of a budget based estimates

Answer 20

budgeting

Question 21

serves as the chief mechanisms for identifying and maintaining control over project costs

Answer 21

cost accounting and cost control

Question 22

Accounts in the WBS where we are capturing ongoing expenditures in our project

Answer 22

Control Accounts

Question 23

EVM

Answer 23

Earned Value Management

Question 24

EAC

Answer 24

estimate at completion

Question 25

Costs that are clearly assigned to the project

Answer 25

direct costs

Question 26

costs that cannot be attributed solely to a single project

Answer 26

Indirect costs

Question 27

2 major categories of Indirect costs

Answer 27

Overhead cost selling and general administration

Question 28

ex: utilities, taxes, insurance, property and repairs, depreciation, health and retirement benefits

Answer 28

overhead cost

Question 29

ex: advertising, shipping, salaries, sale and secretarial support

Answer 29

selling and general administration

Question 30

costs that continue to operate over the project's life cycle

Answer 30

recurring costs

Question 31

recurring costs examples

Answer 31

labour, material, logistics, sales costs

Question 32

Costs that can be associated with charges applied once at the beginning or end of the project

Answer 32

non recurring costs

Question 33

nonrecurring cost examples

Answer 33

one-time training marketing research costs

Question 34

Costs that do not vary with usage

Answer 34

Fixed costs

Question 35

costs that accelerate or increase through usage

Answer 35

Variable costs

Question 36

Refers to those incurred in the routine process of working to complete the project according to the original, planned schedule

Answer 36

Normal costs

Question 37

unplanned costs incurred when steps are taken to speed up the project's completion

Answer 37

Expedited costs

Question 38

examples of expedited costs

Answer 38

overtime hiring additional staff hiring subcontractors higher transportation costs

Question 39

the cost that you have incurred that may or may not have value

Answer 39

sunk cost

Question 40

Cost Classification - Direct Labour

Answer 40

direct recurring variable normal

Question 41

Cost Classification - building lease

Answer 41

indirect recurring fixed normal

Question 42

Cost Classification - expedite

Answer 42

direct non-recurring variable expedited

Question 43

Cost Classification - material

Answer 43

direct recurring variable normal

Question 44

cost allocated to the production of a product or service

Answer 44

Overhead factor

Question 45

consideration for hours labour is not working

Answer 45

Personal time factor

Question 46

total expenditure incurred by a company to produce, store, and sell one unit of a particular product or service

Answer 46

unit cost

Question 47

the production level at which the total costs are covered by the revenue generated

Answer 47

breakeven point

Question 48

the level which your production costs meet the purchase costs

Answer 48

breakeven point

Question 49

measure of how spread out numbers are

Answer 49

Standard deviation

Question 50

the process of developing an approximation of the cost of resources needed to complete the project work

Answer 50

estimate costs

Question 51

a method of estimating a component of work the detailed cost is summarized or rolled up to higher levels

Answer 51

Bottom-up estimating

Question 52

the cost of the activity, based on realistic effort assessment for the required work and any predicted expenses

Answer 52

most likely

Question 53

PERT

Answer 53

Project Evaluation Review Technique