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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