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Flashcards in Cost Management Deck (26)
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0
Q

The most important output of the Plan Cost Management process is the:

A

Cost Management Plan

1
Q

Which process provides direction on how the project costs will be managed throughout the project?

A

Plan Cost Management

2
Q

What is another name for Analogous Estimating?

A

Top-Down Estimating

3
Q

__________ ___________ involves using the actual costs of previous, similar project to estimate the cost of the current project. it is a gross value approach which is often used at the beginning of a project when there is little specific detail?

A

Analogous Estimating

4
Q

Parametric Estimating involves using a ________ ________ between historical data and other variables in UNIT VALUE form to calculate cost estimates. Sine in previous similar projects, it took $100 to develop each web page, we estimate that 4,000 pages will cost $400,000.

A

Statistical Relationship

5
Q

Bottom-up Estimating involves estimating the cost of individual work packages or individual schedule __________ with the greatest level of specific detail. Detailed cost is then summarized or “rolled-up” to higher levels for subsequent reporting and tracking purposes.

A

Activities

6
Q

Three-Point Estimating can be used to improve the accuracy of ______ ______ _______ by using three values (______, _________, ________ ________), instead of one to account for estimating uncertainty.

A

Activity Cost Estimates; Pessimistic; Optimistic; Most Likely

7
Q

What is Reserve Analysis?

A

Where established appropriate cost reserves for unknown situations. Two types of reserves may be considered: Contingency Reserves and Management Reserves

8
Q

_______ _______ ________ involves asking vendors to submit bids for project, or certain portions of it. We plan to buy 20 computers to work on the web pages, so the bids received from the vendors help us to develop a more realistic cost estimate for the project.

A

Vendor Bid Analysis

9
Q

What is the accuracy for a Rough Order of Magnitude (ROM) estimate?

A

-25% to +75%

10
Q

What is the accuracy for a Budget estimate?

A

-10% to +25%

11
Q

What is Cost of Quality?

A

It involves determining the costs associated with conforming to the quality requirements of the project.

12
Q

What is the accuracy for a Definitive estimate?

A

-5% to +10%

13
Q

The Estimate Costs process should be performed in parallel with which Time Process?

A

Estimate Activity Resources

14
Q

How are costs estimates derived with bottom-up estimating?

A

Estimates from Work Packages or activities are rolled up or summarized at higher levels.

15
Q

Determine Budget is the process of ___________ the _______ _______ of individual activities or work packages to establish an authorized cost baseline.

A

Aggregating; estimated costs

16
Q

What is Cost Aggregation?

A

Aggregate of the Activity Costs Estimates for all activities or Work Packages to derive an approved cost baseline for the entire project.

17
Q

What is the Cost Baseline?

A

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

18
Q

What is a performance measurement technique which integrates project scope, cost, and schedule measures to help assess project performance and progress. It can also be referred to as the Performance Measurement Baseline (PMB).

A

Earned Value Management (EVM)

19
Q

Any increase to the authorized budget can only be approved through ________.

A

Perform Integrated Change Control (PICC)

20
Q

In questions about Net Present Value which answer should be chosen?

A

Select the project with the HIGHEST NPV

21
Q

For questions about Present Value which answer should always be chosen?

A

Select the project with the HIGHEST Present Value.

22
Q

In questions on Internal Rate of Return (IRR) which answer should be chosen?

A

Select the project with the HIGHEST IRR (and therefore the highest expected rate of return).

23
Q

In questions about Payback Period what answer should be selected?

A

Select the project with the SHORTEST payback period.

24
Q

What estimating technique involves using a statistical relationship between historical data and other variables in Unit Value form to calculate cost estimates. Since in prior similar projects it took $100 to develop each web page, we estimate that 4,000 will cost us $400K?

A

Parametric Estimating

25
Q

________ _______ _______ involves asking vendors to submit bids for the project, or certain portions of it. We plan to buy 20 computers to work on the web pages, so the bids received from the vendors help us to develop a more realistic cost estimate for the project?

A

Vendor Bid Analysis