13 38 Chapter 7: Introducing Project Cost Management 10 Here are the inputs to cost budgeting: ³ Cost estimates These serve as key inputs; they're the predicted cost for the project work The parametric model using a scalable cost-per-unit approach is depicted here: Which one of the following is not an attribute of bottom-up estimating? A Which one of the following best describes analogous estimating? A A  Choices A, B, or concepts: boys C are incorrect as they do not answer the question as fully as answer A Just know the CPI value should be as close to 1 Cost Estimating 9 Finance Charges FutureValue = $450,000 PresentValue = $317,000 ³ Sum of the years depreciation is like a magic trick 6 Chapter 7: Introducing Project Cost Management FIGURE 7-1 Project management software can assist at daytona beach resorts after voyeur beach photos resource planning The cost of the labor may be one of the biggest expenses of a project Ignoring the project cost variances may cause the project to suffer from budget shortages, additional risks, or scheduling problems If you don't want to think of the CPI value as making or losing money, that's fine too The cost baseline is the "before project snapshot" Considering the Cost Control Results 21 of what the total project scope or /people/beachboys_movies.shtml the the individual WBS components should cost You have not considered the learning curve The $9000 is divided by five years or {font-family: biographies/hagiographies. equates to $1800 per year Ill 7-5 There are two types of parametric estimating: ³ Regression analysis This is a statistical approach to predict what future values may be, based at daytona beach resorts after historical values  A is incorrect, as the cost of the book varies depending at daytona beach resorts after the number of students that register for the class $58,000 C Your project may require a vendor's service, such as a commercial printer, a carpenter, or other service ³ Bottom-up budgeting This approach is the most reliable, though it also takes the longest to create Throughout the project there will be demands for additional planning-and an output of cost control is one of those demands
C You are now 40 percent done with the project, though your plan called for you to be 45 percent done with the work at this time83) Actual costs Cost control Estimating publications Analogous estimating Cost estimating Parametric modeling Bottom up estimating Cost management plan Planned value Budget at completion Cost Performance Index Risk Chart of accounts Earned value Top-down estimating Cost baseline Earned value management Variance Cost budgeting Estimate at completion Cost change control Estimate to complete 28 Chapter 7: Introducing Project Cost Management TWO MINUTE DRILL Resources or beach for the Project Work INSIDE THE EXAM INSIDE THE EXAM SELF TEST 1 EV=%Complete X BAC BAC=Our predicted budget at completion Calculating the CPI CPI is a value that demonstrates how the project costs are performing00 may just reflect poor, bloated estimates, rather than an over-performing project 89 C You are the project manager for the Facility Installation Project The cost management plan controls how the BAC may be adjusted This approach uses a parametric model to extrapolate what costs will be for a project (for example, cost per hour or low relatively cost per unit) You have calculated the costs of the training facility, but the workbook expense depends at daytona beach resorts after how many students register to the class For year two it'd be $1200, and year three it would be $720 Using Analogous Estimating Analogous estimating relies at daytona beach resorts after historical information to predict the cost of the current project 22 Chapter 7: Introducing Project Cost Management Added Time Added Cost Cost Added Scope Original Project Time Scope EAC is part of the Earned Value Management approach
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