Project Management CH 7 - Exam II

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mjweston
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227429
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Project Management CH 7 - Exam II
Updated:
2013-07-17 21:08:04
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Project Management
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Chapter 7
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  1. actual cost (AC)
    the total direct and indirect costs incurred in accomplishing work on an activity during a given period
  2. analogous estimates
    a cost estimating technique that uses the actual cost of a previous, similar project as the basis for estimating the cost of the current project, also called top-down estimates
  3. baseline
    the original project plan plus approved changes
  4. bottom-up estimates
    a cost estimating technique based on estimating individual work items and summing them to get a project total
  5. budget at completion (BAC)
    the original total budget for a project
  6. budgetary estimate
    a cost estimate used to allocate money into an organization's budget
  7. cash flow analysis
    a method for determining the estimated annual costs and benefits for a project
  8. contingency reserves
    dollars included in a cost estimate to allow for future situations that may be partially planned for (sometimes called known unknowns) and are included in the project cost baseline
  9. conrolling costs
    controlling changes to the project budget
  10. cost baseline
    a time-phased budget that project managers use to measure and monitor cost performance
  11. cost management plan
    a document that describes how cost variances will be managed on the project
  12. cost performance index (CPI)
    the ratio of earned value to actual cost; can be used to estimate the projected cost to complete the project
  13. cost variance (CV)
    the earned value minus the actual cost
  14. definitive estimate
    a cost estimate that provides an accurate estimate of project costs
  15. determining the budget
    allocating the overall cost estimate to individual work items to establish a baseline for measureing performance
  16. direct costs
    costs that can be directly related to producing the products and services of the project
  17. earned value (EV)
    an estimate of the value of the physical work actually completed
  18. earned value management (EVM)
    a project performance measurement technique that integrates scope, time, and cost data
  19. estimate at completion (EAC)
    an estimate of what it will cost to complete the project based on performance to date
  20. estimating costs
    developing an approximation or estimate of the costs of the resources needed to complete the project
  21. indirect costs
    costs that are not directly related to the products or services of the project, but are indirectly related to performing the project
  22. intangible costs or benefits
    costs or benefits that are difficult to measure in monetary terms
  23. known unknowns
    dollars included in a cost estimate to allow for future situations that may be partially planned for (sometimes called contingency reserves) and are included in the project cost baseline
  24. learning curve theory
    a theory that states that when many items are produced repetitivly, the unit cost of those items normally decreases in a regular pattern as more units are produced
  25. life cycle costing
    considers the total cost of ownership, or development plus support costs, for a project
  26. management reserves
    dollars included in a cost estimate to allow for future situations that are unpredictable (sometimes called known unknowns)
  27. overrun
    the additional percentage or dollar amount by which actual costs exceed estimates
  28. parametric modeling
    a cost-estimating technique that uses project characteristics (parameters) in a mathematical model to estimate project costs
  29. planned value (PV)
    that portion of the approved total cost estimate planned to be spent on an activity during a given period
  30. profit margin
    the ratio between revenues and profits
  31. profits
    revenues minus expenses
  32. project cost management
    the processes required to ensure that the project is completed within the approved budget
  33. rate of performance (RP)
    the ratio of actual work completed to the percentage of work planned to have been completed at any given time during the life of the project or activity
  34. reserves
    dollars included in a cost estimate to mitigate cost risk by allowing for future situations that are difficult to predict
  35. rough order of magnitude (ROM) estimate
    a cost estimate prepared very early in the life of a project to provide a rough idea of what a project will cost
  36. schedule performance index (SPI)
    the ratio of earned value to planned value; can be used to estimate the projected time to complete a project
  37. schedule variance (SV)
    the earned value minus the planned value
  38. sunk cost
    money that has been spent in the past
  39. tangible costs or benefits
    costs or benefits that can be easily measured in dollars
  40. top-down estimates
    a cost estimating technique that uses the actual cost of a previous, similar project as the basis for estimating the cost of the current project, also called analogous estimates
  41. unknown unknowns
    dolars included in a cost estimate to allow for future situations that are unpredictable (sometimes called management reserves)

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