Cost PMP
Cost PMP
(https://engineeringtracks.com/)
Cost Part 1
Congratulations – you
have completed Cost-
Part 1.
You scored 60 points out of 100
points total.
D O W NLO A D T H E A N S W E R S H E E T
Maintained by management to
cover cost overruns
Added to the costs of the project
to account for risks
Added to each activity to provide the
customer with a shorter critical
path
Hidden to prevent management
f di ll i h
from disallowing the reserve
Wasted cost
Changes to the risk response
plan
A subsequent activity will be
delayed
Lower quality deliverables
350
350
400
-75
-50
Analogous estimating
Estimating activity resources
Earned value management
Funding limit reconciliation
A sunk cost
A common practice
A progress fee
A bribe
Contingency reserves
Cost baseline
Management reserves
Control account estimates
Control Costs
Estimate Activity Resources
Estimate Costs
Determine Budget
Planned value
Estimate to complete
Actual cost
Earned value
Decrease scope.
Meet with the sponsor to find out
what work can be done sooner.
Cut quality.
Eliminate risks in estimates and
reestimate.
Estimate Costs
Funding Limit Reconciliation
Cost Aggregation
Forecasting
EV-PV
BAC/CPI
EV-AC
EV/PV
NPV
I di
Indirect
Fixed
Direct
Control Costs
Project performance review
Performance measurement
analysis
Variance management
Initiating
Monitoring and controlling
Planning
Executing
($2,000)
$2,000
($1,000)
$1,000
Bottom-up
Learning bend
Dollars per module
CPM
Analogous
Parametric
Bottom-up
50/50
Parametric estimate
Rough order of magnitude
estimate
Budget estimate
Definitive estimate
Bottom-up estimating
Control Costs
Cost aggregation
Reserve analysis
Lag
Labor rates
Resources used
Communications management
plan
Direct
Direct
Indirect
Fixed
Variable
Determine Schedule
Determine Budget
Control Schedule
Quantitative Risk Analysis
Change requests
A WBS
A network diagram
Risks
Customer cost
Example of how bad the schedule
was
Direct cost
Sunk cost
0.91, 0.98
1.11, 0.98
0.90, 1.02
1.10, 1.02
Project planning
Project monitoring and
controlling
Project executing
Project initiating
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