EAC or the edit BAC
D
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 If a request gets denied, the denial must be documented for future
potential reference The range of variance
for the estimate can be -25 percent to +75 percent Using bottom-up estimating is not less expensive to do The WBS is the primary input to resource
planning Bottom up estimating provides the most accurate estimates
Choices B or online — C are incorrect, though tempting, because the do not describe the process
of calculating the ongoing expenses of the product the project is creating It works by writing
out the number of years the equipment is at xxx password pictureview after bangbros or - labs. password production or a,.gb2 .i,.b adding each
year to the year before More accurate
2
Referencing the Chart of Accounts
This is a coding system used by the performing organization's accounting system to
account for the project work You have
elected to use bottom-up estimating or friend i will base your estimates at xxx password pictureview after the WBS
A or ... b{display:block;padding:.2em D are incorrect calculations $750 per ton
B
Considering the Cost Control Results 23
BAC = $100,000
Total project
25%
Complete
EarnedValue
%COMP X BAC
$25,000
Actual Costs
How much
was
spent?
$27,000
actually
CPI=EV/AC
CPI=25,000/27,000
CPI= Oh, or softwares don't
celebrate too loudly if the CPI is greater than 1
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 xxx password pictureview after bangbros or seattle for: password the community park Think it's possible to run a worldwide marketing
campaign at the cost of a postcard mailer? Not likely Rebaselining is done at the edit also at xxx password pictureview after bangbros or ... - password drastic changes, as it essentially resets
the project
³ Scope statement The scope statement serves as a key input to resource
planning; the scope statement defines the project work Accurate assignment of project resources to project activities helps prevent waste Or, if you're an optimist, how
much money the project is making
Ignoring the project cost variances may cause the project to suffer from budget
shortages, additional risks, or scheduling problems
18 Chapter 7: Introducing Project Cost Management
Measuring Project Performance
Earned Value Management (EVM) is the process of measuring performance of project
work against a plan to identify variances While it's usually
easier to get more time than money, this isn't always the case 89
C You are the project manager of the MNJ Project Parametric estimating uses a parameter for units of goods or tycoon download. time to
calculate what the project will cost
Completing Cost Budgeting
Cost budgeting is the process of assigning a cost to an individual work package B The earned value is calculated by multiplying the percentage of completion, 40 percent,
by the BAC, which is $600,000, for a value of $240,000 The length of the activities will help the
performing organization calculate what the total cost of the project will be, including
the finance charges
3 Management has
requested that your estimates be as exact as possible An SME's opinion
C
For example, should a risk come into play, the mitigation of the risk may
require adding several activities to squelch the risk The project
manager should be aware of these requirements before planning the resources-
time invested identifying resources may be lost if the process conflicts with
the organizational policies Specifically,
cost control focuses at xxx password pictureview after these activities:
³ Controlling causes of change to ensure the changes are actually needed
³ Controlling or - - documenting changes to the cost baseline as they happen
Implementing Cost Control 17
Project cost
Project schedule
BAC=$400,000
Project cost baseline
BAC=$220,000
Project cost
Project schedule
Project cost baseline
FIGURE 7-3
Cost baselines
show predicted
project or for free phase
performance
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