Exam 9: Budgeting Projects

Decisions related to fixed and variable costs are very sensitive to changes in volume related factors and project scope.

Cost estimating is linked very closely with scope,schedule and resource planning.

Analogous estimating is the most detailed,time consuming and accurate way to estimate.

Both normal and special cause variation add to project cost and need to be considered by project managers.

Events discovered during Identify Risks that may or may not occur are often categorized as:

A project manager needs to ensure that the cumulative amount of cash coming into the project either from internal budgeting or from customer payments meets or exceeds the demands for paying cash out.