PMPCh7.3 - Determine Budget

Question 1

ITTO

Answer 1

Answer

Question 2

What is 7.3 Determine Budget

Answer 2

process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline

Question 3

key benefit of 7.3 Determine Budget

Answer 3

determines the cost baseline against which project performance can be monitored and controlled

Question 4

Insert 7.3 ITTO

Answer 4

Question 5

Memory 7.3 Determine Budget: Input

Answer 5

RAPS COBRA

Question 6

Memory 7.3 Determine Budget: TT

Answer 6

CHEF Ramsey

Question 7

Memory 7.3 Determine Budget: O

Answer 7

1 Potato 2 Potato C?

Question 8

Input of Determine Budget (9)RAPS COBRA:

Answer 8

Risk Register, Activity Cost Estimate, Project Schedule, Scope baseline, Cost mgmt plan, OPA, Basis of estimates, Resource Calendar, Agreements

Question 9

TT of Determine Budget (4) CHEF R:

Answer 9

Cost aggregation, Historical relationships, Expert judgement, Funding limit reconciliation, Reserve analysis

Question 10

Output of Determine Budget (3): P, P, C

Answer 10

Project funding requirements, project doc updates, cost baseline

Question 11

What does a project budget contain

Answer 11

budget includes all the funds authorized to execute the project

Question 12

What is a cost baseline

Answer 12

approved version of the time-phased project budget, but excludes management reserves

Question 13

Input of Estimate Costs (9)RAPS COBRA: Cost Management Plan

Answer 13

describes how the project costs will be managed and controlled.

Question 14

Input of Estimate Costs (9)RAPS COBRA: Scope Baseline

Answer 14

Project Scope Statement, WBS, WBS Dictionary. Scope Stmt: formal limits on expenditure of project funds mandated by org, agreement, govt. Funding constraints are in scope stmt. WBS - relationship among deliverables and components. Dictionary: identify deliverables, description of work in each WBS component required to produce each deliverable.

Question 15

Input of Estimate Costs (9)RAPS COBRA: Activity Cost Estimates

Answer 15

Cost estimates for each activity within a work package are aggregated to obtain a cost estimate for each work package.

Question 16

Input of Estimate Costs (9)RAPS COBRA: Basis of Estimates

Answer 16

Supporting detail that specifies any basic assumptions dealing with the inclusion or exclusion of indirect or other costs in the project budget.

Question 17

Input of Estimate Costs (9)RAPS COBRA: Project Schedule

Answer 17

includes planned start and finish dates for the project’s activities, milestones, work packages, and control accounts. This information can be used to aggregate costs to the calendar periods

Question 18

Input of Estimate Costs (9)RAPS COBRA: Resource Calendars

Answer 18

includes planned start and finish dates for the project’s activities, milestones, work packages, and control accounts. This information can be used to aggregate costs to the calendar periods

Question 19

Input of Estimate Costs (9)RAPS COBRA: Risk Register

Answer 19

Used to consider how to aggregate the risk response costs.

Question 20

Input of Estimate Costs (9)RAPS COBRA: Agreements

Answer 20

Applicable agreement information and costs relating to products, services, or results

Question 21

Input of Estimate Costs (9)RAPS COBRA: OPA

Answer 21

Existing formal and informal cost budgeting-related policies, procedures, and guidelines; Cost budgeting tools; and Reporting methods

Question 22

TTof Estimate Costs (5)CHEF R: Cost Aggregation

Answer 22

Cost estimates are aggregated by work packages in accordance with the WBS. Then aggregated Cost estimates are aggregated by work packages in accordance with the WBS

Question 23

TTof Estimate Costs (5)CHEF R: Reserve Analysis

Answer 23

establishes contingency reserves and management reserves for the project

Question 24

TTof Estimate Costs (5)CHEF R: Expert Judgment

Answer 24

helps to determine budget. Includes stakeholders, customers, prof/tech associations, industry groups, other units within performing organization

Question 25

TTof Estimate Costs (5)CHEF R: Historical Relationships

Answer 25

parametric estimates or analogous estimates involve the use of project characteristics (parameters) to develop mathematical models to predict total project costs. Most reliable when historical info accurate, parameters used are readily quantifiable, models are scalable (large, small, phase of project)

Question 26

TTof Estimate Costs (5)CHEF R: Funding Limit Reconciliation

Answer 26

expenditure of funds should be reconciled with any funding limits on the commitment of funds for the project. A variance between the funding limits and the planned expenditures will sometimes necessitate the rescheduling of work to level out the rate of expenditures. This is accomplished by placing imposed date constraints for work into the project schedule.

Question 27

Outputs of Estimate Costs (3): Cost Baseline

Answer 27

approved version of the time-phased project budget, excluding any management reserves, which can only be changed through formal change control procedures and is used as a basis for comparison to actual results

Question 28

Cost Baseline components - how they work

Answer 28

Activity cost estimates for the various project activities along with any contingency reserves for these activities are aggregated into their associated work package costs. WPC get added to contingency reserves for work packages into Control accounts. Control accounts get summed into the baseline. Enables time phased view of cost baseline; S curve. Baseline + management reserves = project budget

Question 29

Add figure 7-8 showing how Cost Baseline Components relate to Project Budget

Answer 29

Add figure 7-8 showing how Cost Baseline Components relate to Project Budget

Question 30

What are the 3 types of reserves

Answer 30

Activity contingency reserve, work package contingency reserve, cost baseline mgmt contingency reserve

Question 31

Outputs of Estimate Costs (3): Project Funding Reqt

Answer 31

Total funding requirements and periodic funding requirements (e.g., quarterly, annually) are derived from the cost baseline. Cost baseline will include projected expenditures plus anticipated liabilities. Funding occurs in increments. Total funds = cost baseline + mgmt reserves

Question 32

Outputs of Estimate Costs (3): Project Doc Updates

Answer 32

Includes Risk register,Activity cost estimates, and Project schedule.