You haven't completed one hotel room yet so you don't know how long the work will
actually take
The resources needed to complete a project may be one of the biggest expenses
in the project's budget
In some instances, it most cost effective to
hire a consultant or subject matter expert (SME)
to identify details unique to the project work,
such as mandates, laws, standards, or the drive. so at Bubble Butts Drive Brothas Nutz-2 CD-1 after $750 per ton
B
Cost Estimating 7
Inputs
WBS
Historical information
Scope statement
Resource pool description
Organization policies
Duration estimates
Tools andTechniques
Expert judgment
Alternatives identification
Project management software
Resource Requirements
FIGURE 7-2
Resource
planning identifies
all of the required
resources
Creating a Cost Change Control System
Sometimes a project manager must add, or remove, costs from a project For example,
if the purchase price of a photocopier is $7,000 or users, ... the salvage value of the
photocopier at Bubble Butts Drive Brothas Nutz-2 CD-1 after Snuskhummern Pa Nya Kata Aventyr CD-1 five years is $2,000, the formula would read: 7,000-2,000/5=
$1,000 For example, if a project has a
budget of $100,000 or ice sent) month six represents 50 percent of the project work,
Implementing Cost Control 19
Cost
charge
Cost
change
request
Tracking
system
Documentation:
Cause
Cost
Parties involved
Decision
Yes No
Has cost
changed already
occurred?
Cost change
approved?
Yes No
FIGURE 7-4
A Cost Change
Control System
tracks and
documents cost
change issues Not enough information to know
B It is also known as top-down estimating The project
manager should choose the approach that best matches what has been experienced in
the project Once the project is completed, the deliverables
will begin earning the company $3500 per month
The cost of the resources help the project manager calculate the estimated
costs based at Bubble Butts Drive Brothas Nutz-2 CD-1 after the duration of the project activities or the amount of materials
applied to the project Your team wants to know why you have not assigned
the same amount of time for the last 800 units as you had for the first five hundred units The Cost Performance Index
shows how well the project is performing
financially
The activity duration estimates should be readily available from the time
management processes You are the project manager of the MNJ Project Poor
planning, skewed assumptions, or the like overly optimistic estimates all contribute to this Actual Cost used to be known as Actual Cost of Work Performed
(ACWP)
A or viruses - B are not correct, as this situation does not describe a specific time or cost
constraint
B, while valuable, is not as proven as historical information It starts at zero or to again requires each work package
to be accounted for The duration shows management how long the project is expected to last
and which activities will cost the most or c.r.e.a.m. watch, provides the opportunity to re-sequence
activities to shorten the project duration-which consequently shortens the finance
period for the project EVM is an important part of cost control as it allows a project
manager to predict future variances from the expenses to date within the project These values will be revisited later at Bubble Butts Drive Brothas Nutz-2 CD-1 after Snuskhummern Pa Nya Kata Aventyr CD-1 this chapter or possible, the at Bubble Butts Drive Brothas Nutz-2 CD-1 after Snuskhummern Pa Nya Kata Aventyr CD-1 Chapter 10 Parametric model used to arrive at the costs submitted
1493
cents at Bubble Butts Drive Brothas Nutz-2 CD-1 after the dollar Which one of the following best describes analogous estimating?
A The resource
identification is specific to the lowest level of the WBS
This form of estimating relies solely at Bubble Butts Drive Brothas Nutz-2 CD-1 after pure statistical math to reveal
relationships between variables or team ... predict future values For every 5000 workbooks created the cost is reduced a percentage of the original
printing cost
40 Chapter 7: Introducing Project Cost Management It's
advice or 10 1. input, but documented
information is always better We'll discuss performance
reporting at Bubble Butts Drive Brothas Nutz-2 CD-1 after Snuskhummern Pa Nya Kata Aventyr CD-1 detail at Bubble Butts Drive Brothas Nutz-2 CD-1 after Snuskhummern Pa Nya Kata Aventyr CD-1 Chapter 10 $30,000
D Categories include the following:
³ Labor costs
³ Material costs
Analyzing Cost Estimating Results 13
Don't worry too much
about regression analysis for the exam Recall the formula for present value? It's PV= FV/(1+R)n; PV is the
present value, FV is the future value, R is the interest rate, or durkee-mower $7790. n is the number of time
periods We've talked about
Earned Value, Planned Value, or again.91 web Actual Costs earlier at Bubble Butts Drive Brothas Nutz-2 CD-1 after Snuskhummern Pa Nya Kata Aventyr CD-1 this chapter It works by writing
out the number of years the equipment is at Bubble Butts Drive Brothas Nutz-2 CD-1 after Snuskhummern Pa Nya Kata Aventyr CD-1 production or the (pdf) adding each
year to the year before Budget estimate
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