Flashcards in Introducing Project Cost Management Deck (24)

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1

## Actual Costs

### Used in earned value measurements; the actual cost of the work performed.

2

## Analogous Estimating

### This relies on historical information to predict estimates for current projects. Analogous estimating is also known as top-down estimating and is a form of expert judgment.

3

## Bottom-up Estimating

### A technique where an estimate for each component in the WBS is developed and then totaled for an overall project budget.

4

## Budget At Completion

### The predicted budget for the project; what the project should cost when it is completed.

5

## Chart Of Accounts

### A coding system used by the performing organization's accounting system to account for the project work.

6

## Cost Baseline

### This shows what the project is expected to spend. The purpose of the cost baseline is to measure and predict project performance.

7

## Cost Budgeting

### A process of assigning a cost to an individual work package.

8

## Cost Change Control

### This is part of the integrated change control system and documents the procedures to request, approve, and incorporate changes to project costs.

9

## Cost Control

### An active process to control the causes of cost changes, to document cost changes, and to monitor cost fluctuations within the project.

10

## Cost Estimating

### The process of calculating the costs, by category, of the identified resources to complete the project work.

11

## Cost Management Plan

### Details how variances from the project costs will be managed.

12

## Cost Variance

### The cost variance (CV) is the difference between the earned value (EV) and the actual cost (AC).

13

## Earned Value

### The value of the work that has been completed and the budget for that work, the equation for which is EV = %complete x BAC.

14

## Earned Value Management

### Earned value management integrates scope, schedule, and cost to give an objective, scalable point-in-time assessment of the project.

15

## Estimate At Completion

### A hypothesis of what the total cost of the project will be; calculated to predict what the new estimate at completion will be.

16

## Estimate to Complete

### Represents how much more money is needed to complete the project work. Its formula is ETC = EAC - AC.

17

## Estimating Publications

### A commercial reference to help the project estimator confirm and predict the accuracy of estimates.

18

## Parametric Modeling

### A mathematical model based on known parameters to predict the cost of a project.

19

## Planned Value

### The worth of the work that should be completed by a specific time in the project schedule.

20

## Risk

### An unplanned event that can have a positive or negative influence on the project success.

21

## Schedule Performance Index

### The SPI reveals the efficiency of work. The closer the quotient is to 1, the better. Its equation is SPI = EV/PV

22

## Schedule Variance

### The difference between the planned work and the earned work.

23

## Top-down Estimating

### A technique that bases the current project's estimate on the total of a similar project.

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