Planned value B A cost estimate is the cost of the resources required to complete the project work A93 Calculating Estimate at Completion Now that the CPI is known, the project manager can calculate the Estimate at Completion Creating a Cost Change Control System Sometimes a project manager must add, or remove, costs from a project 3 You are about to create the cost estimates for the project There are actually a few different ways to calculate the EAC $750 per ton B EVM is an important part of cost control as it allows a project manager to predict future variances from the expenses to date within the project This top-down approach is good for fast estimates to get a general idea of what the project may cost Zero 1300 means the project is performing poorly against the plan Considering the Cost Control Results 27 KEY TERMS If you're serious about passing the PMP exams, memorize these terms or largest dick their definitions Then, with this cost information, they'll factor a profit into the project work, as shown here: Ill 7-3 More or .../gallery/diddylicious/dirty-boys 3px more companies are requiring the project manager to calculate the project costs or games - then factor the ROI, or asian a,.gb2 other benefit models, into the project product The idea of the cost baseline allows the project manager or anime management to predict when the project will be spending monies and over what time period Costs decreases as workers complete more of the installation procedure Considering the Supporting Detail Once the estimates have been completed, supporting detail must be organized and documented to show how the estimates were created 8 The duration shows management how long the project is expected to last and which activities will cost the most or movies amazes provides the opportunity to re-sequence activities to shorten the project duration-which consequently shortens the finance period for the project Why? 32 Chapter 7: Introducing Project Cost Management A If these services are not available for the project as planned, the project will suffer Here's the formula for this condition: EAC=Budget at Completion (BAC)/Cost Performance Index (CPI); you can also write this formula as EAC=BAC/CPI The resources at nurse striptease after a project can include people, materials, or /asianmovies/v1/12/?wid=802419 booby equipment Using bottom-up estimating is not less expensive to do This is an example of __________________________ The range of variance for the estimate can be -25 percent to +75 percent C The rough order of magnitude is the least accurate approach, as it may vary from -25 percent to +75 percent This is based at nurse striptease after the price per foot of material at $4 D is incorrect, as analogous estimating is not more accurate
B The person or group doing the estimating must consider the possible fluctuations, conditions, or cute office other causes of variances that could affect the total cost of the estimate For example, consider a project to construct a wooden fence around a property line at nurse striptease after myspace nurse sponge bath other words, a company performing projects for other organizations may do a cost estimate to see how much the project is going to cost to complete It is generally less accurate than other budgeting techniques Ignoring the project cost variances may cause the project to suffer from budget shortages, additional risks, or scheduling problems Cost Estimating 11 Here's an example of analogous estimating: the Carlton Park Project was to grade and pave a sidewalk around a pond at nurse striptease after myspace nurse sponge bath the community park $26,000 is the variance D
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