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Set of flashcards Details
| Flashcards | 34 |
|---|---|
| Language | English |
| Category | Micro-Economics |
| Level | Primary School |
| Created / Updated | 08.12.2013 / 09.12.2013 |
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If something gets more expensive than the budget allowed it
Revenue minus expenditures
Ratio of revenues to profits
The total cost of ownership.
Determining the estimated annual costs and benefits for a project and check if they have enough money. And to determine the net present value
Costs or benefits that can be measured easily
Difficult to measure in monetary terms.
Directly related to producing the products or services of the project. FE. salaries
They are not directly related to a project like electricity, paper towels ?
Money that was spent in the past.
When many items are produced repetively the unit cost of those items decreases.
Known unknowns ? reserves for future situation that may be planed but not totally sure and are already included in the baseline.
Unknown unknowns ? cover costs for unpredictable costs ? for example a manager gets ill.
Provides an estimate of what a project will cost. It is made very early, often before the project is started. The actual costs can be -50 to +100%.
Used to allocate money int an organization?s budget often 2 years before costs will occur. It will be -10 to +25%
Provide an accurate estimate of project costs for making purchasing decisions. For Example the purchase of 1000 PCs in 3 months. It has between -5 and +10% accuracy.
Is a document that describes how the organization will manage cost variances on the project?
Use the actual cost of a previous, similar project as the basis for estimating the cost of the current project. It requires a lot of expert judgment, it is less accurate and is cheaper than others
Estimating individual activities and summing them to get a project total. Another name is activity-based costing; it is quiet time intensive and expensive.
Uses project parameters in a mathematical model to estimate project costs. For Example 50$ per line of code needed.
Time-phased budget that project managers use to measure and monitor cost performance
Performance measurement technique that integrates scope, time and cost data.
Original project plan plus approved changes
Also called the budget is that portion of the approved cost estimate planned to be spent on an activity during a given period
Is the total direct and indirect costs incurred in accomplishing work on an activity during a given period
Is an estimate of the value of the physical work actually completed. EV = PV * RP
Is 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.
Is the earned value minus the actual cost, if it is negative it is more expensive than planned. CV = EV ? AC
Earned value minus the planed value, a negative value means that it took longer than planned. SV = EV ? PV
Ratio of earned value to actual cost and can be used to estimate the projected cost of completing the project. If the value is less than 100% the project is over budget, if the value is over 100% the project is under budget CPI=EV/AC
Ratio earned value to planned value and can be used to estimate the projected time to complete the project. If the index is over 100% the project is ahead schedule. If the index is less than 100% the project is behind. SPI=EV/PV
Estimate of what it will cost to complete the project base on performance to date. EAC = BAC/CPI
The original total budget for the project
Original time estimate/SPI
