Term
|
Definition
| The processes required to ensure a project team completes a project within an approved budget |
|
|
Term
| Tasks of Project Cost MGMT Team (5) |
|
Definition
-Calculate the total cost of undertaking each project activity
-Determine the total cost of staff on the project
-Monitor the total actual cost vs. forecaset cost
-Easily identify current and potential cost overruns
-Monitor the consumption rate of the project budget. |
|
|
Term
| Three project cost mgmt preocesses |
|
Definition
1. Estimate Costs
2. Determine Budget
3. Control costs |
|
|
Term
|
Definition
1. Rough order of magnitude(ROM)-50-100% from actual cost
2. Budgetary- -10-25% of actual cost
3. Definitive- -5-10% from actual cost |
|
|
Term
|
Definition
Variable-Varies depending on conditions
Fixed-Remain constant
Indirect-Used for multiple projects
Direct-Directly related to project
Sunk-should be forgotton |
|
|
Term
| Three Tools/Techniques for estimating cost |
|
Definition
1. Top Down: Applying costs based on previous projects
2. Bottom up: Start at lowest level on WBS and estimate cost/duration and work up to create a combined cost forecast. Very accurate for total time/cost.
3. Parametric: Estimates based on historical costs |
|
|
