Project Cost Management
About the Lecture
The lecture Project Cost Management by Grey Campus is from the course Project Management Professional. It contains the following chapters:
- Section Overview and Objectives
- Plan Cost Management
- Estimate Cost
- Determine Budget
- Earned Value Management
- Forecasting
Included Quiz Questions
Accountants usually define what as a resource sacrificed or foregone to achieve a specific objective or something given up in exchange?
- Cost
- Money
- Liability
- Trade
What is the main goal of project cost management?
- To complete a project within an approved budget.
- To complete a project for as little cost as possible.
- To provide truthful and accurate cost information on projects.
- To ensure that an organization's money is used wisely.
Which of the following is not an output of the project cost management process called estimating costs, according to the PMBOK Guide?
- A cost baseline
- Activity cost estimates
- Basis of estimates
- Project documents updates
If a company loses $5 for every $100 in revenue for a certain product, what is the profit margin for that product?
- -5%
- 5%
- - $5
- $5
____ reserves allows for future situations that are unpredictable.
- Management
- Contingency
- Financial
- Baseline
You are planning a cost estimate for a building based on its location, purpose, number of square feet, and other characteristics. What cost-estimating technique are you using?
- Parametric
- Analogous
- Bottom-up
- Top-down
What involves allocating the project cost estimate to individual material resources or work items over time?
- Project cost budgeting
- Reserve analysis
- Life Cycle costing
- Earned value analysis
What is a project performance measurement technique that integrates scope, time, an cost data?
- Earned value management
- Reserve analysis
- Life Cycle costing
- Project cost budgeting
If the actual cost for a WBS item is $1,500 and its earned value is $2,000, what is the cost variance, an is it under or over budget?
- The cost variance is $500, which is under budget.
- The cost variance is -$500, which is over budget.
- The cot variance is -$500, which is under budget.
- The cost variance is $500, which is over budget.
If a project is halfway completed, its schedule performance index is 110%, and its cost performance index is 95%, how is it progressing?
- It is ahead of schedule and over budget.
- It is ahead of schedule and under budget.
- It is behind schedule and under budget.
- It is behind schedule and over budget.
Which estimating technique relies on the estimator developing detail for each activity in the WBS?
- Bottom-up
- Analogous
- Parametric
- Critical Path
Which type of estimating technique utilizes factors to account for elements of scale?
- Parametric
- Analogous
- Critical Path
- Bottom-up
Which type of estimate develops estimates based on similar projects?
- Analogous
- Parametric
- Bottom-up
- Critical Path
An estimate that has a large margin of error and is usually used to test the initial viability of a project is ...
- order of magnitude.
- definitive.
- conceptual.
- preliminary.
A cost category that does not change when units of production vary is called ...
- fixed cost.
- direct cost.
- indirect cost.
- variable cost.
You have two projects on your desk and can only chose one. The cost of choosing one over the other is called ...
- opportunity cost.
- direct cost.
- fixed cost.
- benefit cost ratio.
A CPI of less than 1 means ...
- you are getting less than you planned for each dollar spent.
- you are ahead of schedule.
- you are behind schedule.
- you are getting more than you planned for each dollar spent.
What are direct costs?
- Those that involve the actual production of the product
- Those that are fixed
- Those that are variable
- Those that can be estimated accurately
If PV = 5,000, AC = 5,500, EV = 4,500, what is the CPI?
- 0,82
- 1,2
- -1000
- 500
If PV = 5,000, AC = 5,500, EV = 4,500, what is the SPI?
- 0,9
- 1,1
- 1000
- -500
What is the EAC?
- How much, total, the project will cost
- How much more money it will take to finish
- How much has been spent to date
- The same as BAC-PV
Internal rate of return is ...
- a sophisticated project justification method.
- an estimating method.
- a basic project justification method.
- part of earned value analysis.
An SV of 1.1 means ...
- none of the answers.
- you are ahead of schedule and overspent.
- you are behind schedule and overspent.
- ou are ahead of schedule and overspent
Author of lecture Project Cost Management
Grey Campus
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Excerpts from the accompanying material
... What is cost management? What are the processes of cost management? What is the cost management plan and what does it establish? The different ways of estimating costs of ...
... the project can be completed within the approved budget. Processes include: Plan ...
... cost of the resources needed to complete project activities. Key benefit: Provides guidance and direction on how the ...
... Level of Accuracy (e.g + or - 10%). Organizational procedure links. Control thresholds (% deviations from the baseline ...
... Key benefit: Determines the amount of cost required to complete project work, inputs tools & techniques outputs. 1. Cost management plan. 2. Human resource management plan. 3. Scope baseline ...
... & TechniquesOutputs.1. Cost management plan. 2. Scope baseline. 3. Activity cost estimates. 4. Basis of estimates. 5. Project schedule. 6.Resource calendars. 7. Risk register. 8. Agreements. 9. Organizational process assets. 1. Cost aggregation ...
... changes to the cost baseline. Key benefit: Provides a means to recognize variance from the plan in order to take corrective action an minimize risk. Inputs tools ...
... monitors 3 key dimensions for each work package and control account: 1. Planned ...
... also be monitored: Schedule variance (SV) - ahead of behind delivery date SV = EV - PV. Cost variance (CV) - over or under budget ...
... EAC forecast for ETC work considering both SPI and CPI ...
... is required to be achieved with the remaining resources in order to meet a specified ...
... (SV = EV - PV). Variance at completion: ...
... What are the processes of cost management? What is the cost management plan and what does it establish? The different ways of estimating costs of a project ...
