Exam 7: Determining Costs, Budget, and Earned Value

A cost is determined for each period, based on when the activities that make up the work package are scheduled to be performed, to create

The worst scenario from the contractor's point of view is to have the customer make only one payment at the end of the project.

Committed costs are also known as discharged or postponed costs.

Which of the following is not a way to reduce the costs of activities:

Contingency costs in the project costs estimate, also referred to as _________, are to cover unexpected situations that may come up during the project, such as items that may have been overlooked when the initial project scope was defined, activities that may have to be redone because they may not work the first time (redesigns), or a high probability or high impact risk that may occur.

Earned value, the value of___________, is a key parameter that must be determined throughout the project.

The _____ is the amount that was actually spent to accomplish the work that was scheduled to be performed up to that point in time.

Calculate the forecasted cost at completion if the cumulative actual cost is $10,000 and the re-estimate of remaining work to be performed is $5,000.

In many cases, there will be a tradeoff-reducing cost variances will involve a reduction in project scope or a delay in the project schedule.

The budget for each work package is

Materials costs in the project costs estimate are the estimated costs of materials that the project team or contractor

The key to effective cost control is waiting to address negative cost variances and cost inefficiencies after they are identified.

Based on analysis of actual cost it is possible to forecast what the total costs will be at the completion of the project or work package.

The percent complete estimate for a work package is subjective and requires an underestimated guess compared to the scope of the work package.

Committed costs need to be treated in a special way so that the system

It may be easier to estimate the costs for________, but as the project progresses, the project team can progressively elaborate the estimated costs as more information is known or becomes clear to allow for more accurate estimated costs.

If the cumulative earned value is $10 and the cumulative actual costs are $20, then the CPI is

The _____ is the sum of the estimated costs of all the specific activities that make up a work package or the project.

When the budgets for all the work packages are summed,

Calculate the forecasted cost at completion if the total budgeted cost is $15,000, the cumulative actual cost is $10,000, and the cumulative earned value is $12,000.