Study Cards - Chapter 7

Question 1

The cost management Planning activities are…

Answer 1

• Estimate costs

- Determine budget

Question 2

The cost management M&C activities are

Answer 2

• Control costs

Question 3

Life cycle costing

Answer 3

• total cost of ownership for the lifetime of the product

Question 4

Value Engineering

Answer 4

• looking for substitutions to reduce cost, improve quality or both

Question 5

Estimate Costs - Key Outputs

Answer 5

• Activity Cost Estimates

- Basis of Estimates

Question 6

Estimate Costs - Techniques

Answer 6

• Duration estimate types
• Cost of quality
• PM estimating software
• Vendor bid analysis

Question 7

Estimate Costs - Key Inputs

Answer 7

• Scope Baseline
• Project Schedule
• Human Resource Plan
• Risk Register

Question 8

PERT for cost

Answer 8

Mean = (Co + 4Cml + Cp) / 6
Standard Deviation = (Cp - Co) / 6
Variance = σ² (Standard Deviation squared)

Question 9

Four types of cost are

Answer 9

• Fixed
• Variable
• Direct
• Indirect

Question 10

Analougous estimating

Answer 10

• Little Time and effort
• Less costly to create
• Less accurate
• Information may not be available

Question 11

Bottom-up estimatinge

Answer 11

• Improved accuracy
• Provides team buy-in to estimates
• Longer time and higher cost to create
• Subject to padded estimates

Question 12

Parametric estimating

Answer 12

• Can be more accurate than analogous
• Quicker than bottom-up
• Accuracy varies widely
• Can be more costly than analogous

Question 13

Rough order of magnitude

Answer 13

-50% to +50% (Initiating)

Question 14

Definitive estimate

Answer 14

-10% to +10% (Planning)

Question 15

Determine Budget - Key Inputs

Answer 15

• Activity cost estimates
• Schedule
• Scope baseline

Question 16

Determing Budget - Techniques

Answer 16

• Cost aggregation
• Reserve analysis
• Funding limit reconciliation

Question 17

Determing Budget - Key Outputs

Answer 17

• Cost baseline

- Funding requirements

Question 18

Basis of estimates

Answer 18

• Detailed analysis of how the cost estimate was derived

- Can include assumptions, constraints, ranges, confidence level

Question 19

Reserve Analysis

Answer 19

• addresses management reserve and contingency reserve in a project
• Reserves are not included in earned value calculations

Question 20

Funding limit reconciliation

Answer 20

• addresses the variance between funding limit and the planned expenditures for the project

Question 21

Control Costs - Inputs

Answer 21

• PM Plan (cost baseline)

- WPI

Question 22

Control Costs - Tools

Answer 22

• EVM
• Forecasting
• Performance reviews
• Variance analysis

Question 23

Control Costs - Outputs

Answer 23

• Forecasts
• CRs
• Updates

Question 24

Cost Baseline

Answer 24

• Cost of all activities

- Includes contingency reserves

Question 25

Cost (Total) Budget

Answer 25

- Includes cost baseline | - Includes managment reserve

Question 26

Negative variance

Answer 26

- Over budget or behind schedule

Question 27

Positive variance

Answer 27

- Under budget or ahead of schedule

Question 28

Index under 1

Answer 28

- Over budget or behind schedule

Question 29

Index over 1

Answer 29

- Under budget or ahead of schedule

Question 30

Accrual methods

Answer 30

Upfront/At Completion - 50/50 - 20/80 - 0/100