Actual Cost Means?Aka actual cost ofwork performed(ACWP)

Budget to Completionmeans?

Determining EarnedValue Includes?

Earned Value (EV)Means? Aka budgetedcost of workperformed (BCWP)

Earned ValueForecast Table

Earned Value Rules(Fixed FormulaProgress Reporting)

Earned Value Table

Estimate to Complete(ETC)

Expected PresentValue

Future Value Formula

How do you calculateActual Costs (AC)?

How do you calculateBudget at Completion(BAC)?

How do you calculatecost variance (CV)and what does itmean?

How do you calculateEarned Value (EV)?

How do you calculateFuture Value (FV)?

1. The cost of the work that has beencompleted at a specific point intime, including any work startedahead of schedule

2. The amount you expect the projectto cost

3. Budget to completion (BAC),Planned Value (PV), Actual Cost(AC), Earned Value (EV)

4. A measurement of the progress of aproject and the basis of costanalysis, including any workstarted ahead of schedule.

5. EAC = BAC / CPIETC = EAC - ACVAC = BAD - EAC

6. Typically used on shorter durationnot exceeding two reportingperiods. E.G. 25%

7. Cost Start Here Time AC (ACWP) EV (BCWP) PV(BCWS) CPI = / <---- ----> / = SPICV $ = - <---- ----> - = SV $

8. Estimate on what is needed tofinish the project based on thecurrent spendingETC = Estimate at Completion(EAC) - Actual Cost (AV)

9. $ * Probability

10. FV=PV*(1+r)^n

11. Total what you has been spent todate.

12. Total the amounts of all plannedactivities.

13. EV - AC - shows the differece invalue of work completed and actualcost of that work0 = project on track> 1.0 = project under budget< 1.0 = project is over budget

14. Total the EV amount multiplied bythe completion amount of allactivities even the ones that havenot been started.

15. FV= PV * (1+r)^n

How do youcalculate PlannedValue (PV orBCWC)?

How do youcalculate PresentValue (PV)?

Planned Valuemeans? Akabudgeted cost ofwork scheduled(BCWS)

Present ValueFormula

SchedulePerformance Index(SPI) formula andwhat does it mean

Schedule Variance(SV) formula andwhat does it mean

Sunk Cost

To CompletePerformance Index(TCPI)

Variance atCompletion (VAC)

WeightedMilestone

What are the 3 costestimate ranges?

16. Add up the planned value amounts ofeach activities up to the time period.

17. PV=FV/(1+r)^n

18. The value of the work that should becompleted at a specific point of time,excluding any work started ahead ofschedule

19. PV=FV/(1+r)^n

20. EV/PV - indicator that shows theamount of work done at single point intime1.0 = On track>1.0 = better then expected<1.0 = Less then expected

21. EV- PV - indicator the shows thedifference between value of workcompleted and value of what shouldhave been completed0 = on track> 0 = Project under budget< 0 = project over budget

22. Already spent. Do not consider sunkcost when making future projectdecisions

23. Effiency indicator that shows howmuch effiency is needed fromremaining resources to meet cost goalsand finish on budgetTCPI = (Budget at Completion (BAC) -Earned Value (EV)) / (Budget atCompletion (BAC) - Actual Cost (AC))

24. Difference of the Budget to Completion(BAC) and the Estimate at Completion(EAC). Will show how much projectedover or under budgetVAC = BAC - EAC

25. Typically used for activities longerthen two reporting periods. Eachmeasurable output for each section ofwork.

26. Rough Order of Magnitude: -50% to50% or -25% to 75% Initiating (Start)Budget Est: -10 to 25% Early PlanningDefinitive (or Control) -10% to 10% or-5% to 10% End Planning (End)

PMP Cost ManagementStudy online at quizlet.com/_8h0cl

What are the3 processesinvolved inCostManagement?

What are the4 differenttypes ofcosts?

What are theittos forControlCosts?

What are theittos forDetermineBudget?

what are theittos forEstimateCost?

27. 1. Estimate Costs2. Determine budget3. Control costs

28. Direct Cost, Indirect Cost, Fixed Cost,Variable cost

29. Inputs: Project management plan, projectfunding requirements, work performanceinformation

TT: Earned Value Measurement, Forecasting,T0-Complete Performance Index (TCPI),Performance reviews, Variance analysis, PMSoftware

Outputs: Work Performance Measurement,Budget Forecasts, Change Requests, ProjectManagment Plan updates, OrganizationalProcess Assets Updates, Project DocumentUpdates

30. Inputs: Activity Cost Estimates, Basis of Est.,Scope Baseline, Project Schedule, ResourceCalendars, Contracts, OrganizationalProcess Assets.

TT: Cost Aggregation, Reserve Analysis,Historical Relationships, Funding limitReconciliation, Expert Judgement

Outputs: Cost Performance Baseline, ProjectFunding Requirements, Project DocumentUpdates

31. Inputs: Scope baseline, project schedule,human resource plan, risk register

TT: Expert judgement, Parametric Est., 3-point Est, Analogous Est. Bottom-up Est,Reserve Analysis, Vendor Bid Analysis, Costof Quality, PM Estimate Software

Outputs: Activity cost est., Basis of est.

What are theittos forEstimate Costs?

What is EAC(Estimate atCompletion)and what doesit mean?

What is the 3-pointEstimationFormula(Triangulation)

What is theCostPerformanceIndex (CPI)formula andwhat does itmean?

What is thedifferencebetween Chartof Accountsand Code ofAccounts?

What is thedifferencebetween the 4types of costs?

What is thepurpose of CostManagement?

32. Inputs: Scope baseline, project schedule,human resource plan, risk register,enterprise environmental factos,organizational process assets

TT: Expert Judgement, Analogousestimating, Parametric estimating, Bottom-up estimating, Three-point estimating,Reserve Analysis, Cost of quality, Projectmanagement estimating software, Vendorbid analysis

Output: Activity cost estimates, Basis ofestimates, Project document updates

33. Projected final cost on current currentspending efficency (CPI)

EAC = Budget at Completion (BAC)/ CostPerformance Index (CPI)

34. (P+O+ML)/3

35. EV/AC - indicator that shows how muchwas returned for every dollar spent at acurrent point in time1.0 = On track or dollar for dollar> 1.0 = Under budget and getting more forever dollar spent< 1.0 = Over budget and getting less forevery dollar spent

36. Chart of accounts is used by accountingand PM system to establish and trackbudgetsCode of accounts is a numbering systemthat identifies pieces of work to the WBS.

37. Direct costs are spent only on project work

Indirect Costs are needed for the project butnot restricted to it

Fixed Costs is consistent on a projectregardless of how many are used

Variable Costs fluctuates with what isproduced.

38. Completing the project within the approvebudget.