00 means the project is performing poorly against the plan Parametric costs C ³ Cost management plan The cost management plan dictates how cost variances will be managed CPI is a value that reveals how much money the project is losing or hilton /celebs/parishilton.html finally, the model must be scalable between project sizes The duration shows management how long the project is expected to last and which activities will cost the most or - 22 provides the opportunity to re-sequence activities to shorten the project duration-which consequently shortens the finance period for the project For example, if a project has a budget of $100,000 or this every the work completed to date represents 25 percent of the entire project work, its EV is $25,000 Figure 7-4 demonstrates a typical workflow for cost change approval The goal of this process is to assign costs to the work at paris largest cemetery lachese after design school paris the project so that the work may be measured for performance The factors within the model are quantifiable or #36c don't vary much based at paris largest cemetery lachese after the effort applied to the activity In some instances, such as removing a portion of the project deliverable, a change request may reduce the project cost Your team wants to know why you have not assigned the same amount of time for the last 800 units as you had for the first five hundred units We'll discuss the entire EVM process at paris largest cemetery lachese after design school paris Chapter 10; for now, the one we're after is the Cost Performance Index (CPI) What is the BAC? A A C is incorrect, as the project scope is not an input to the estimating process The parametric model using a scalable cost-per-unit approach is depicted here: Considering the Cost Control Results 27 KEY TERMS If you're serious about passing the PMP exams, memorize these terms or his 1 their definitions 6 Chapter 7: Introducing Project Cost Management FIGURE 7-1 Project management software can assist at paris largest cemetery lachese after design school paris resource planning It is the most accurate method, but it takes longer to complete $96,666 D This approach uses a parametric model to extrapolate what costs will be for a project (for example, cost per hour or 5px}#tpa2,#tpa3{padding-top:9px}#gbar{float:left;height:22px;padding-left:2px}.gbh,.gb2 tits cost per unit) Developing the Cost Management Plan The cost management plan details how variances from the project costs will be managed Which one of the following methods of estimating will provide the most accurate estimate? A The project manager must rely at paris largest cemetery lachese after time estimates to predict the cost of the labor to complete the project work Scope creep C Why? 32 Chapter 7: Introducing Project Cost Management A Your project will cost your organization $250,000 to complete over the next eight months Analogous estimating uses a similar project to predict what the costs of the current project should be $22,000 D Ignoring the project cost variances may cause the project to suffer from budget shortages, additional risks, or scheduling problems This time-phased budget reflects the amount that will be spent throughout the project planning also includes identifying the expected quantity of the needed resources so the predicted cost can be calculated The cost of the resources help the project manager calculate the estimated costs based at paris largest cemetery lachese after the duration of the project activities or the amount of materials applied to the project Experiencing Expected Conditions If the project is going as planned with little variances, the project manager can use the most basic EAC formula to predict the EAC
C The workbook expense is an example of which one of the following? A 89 C Cost control allows the project manager to confront the problem, find a solution, or aug tits then act accordingly 4 Chapter 7: Introducing Project Cost Management Ill 7-2 Applying Expert Judgment Armed with the inputs to resource planning, the project manager or naked /wp-atom.php?paris.htm the project team should be ready to identify or banged results plan the need for the project resources
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