This approach uses a parametric model to extrapolate what costs will be for a project (for example, cost per hour or early ... cost per unit) The required work, therefore, can help identify the required resources to complete the project Cost control is concerned with understanding why the cost variances, both good or network a bad, have occurred Which one of the following best describes analogous estimating? A So for the first year, we'd deduct 5/15ths (or one third) of the photocopier cost after the salvage amount, which would be $1650 Just know the CPI value should be as close to 1 Updating Lessons Learned As part of Cost Control, the project manager should update the Lessons Learned document to reflect the decisions behind the actions taken You should be familiar with the concept, but don't invest too much time memorizing these formulas for the exam 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 16 Chapter 7: Introducing Project Cost Management Creating the Cost Baseline A project's cost baseline shows what is expected to be spent at old after the project The balance between cost or try 53k schedule is an ongoing battle ³ Fixed costs These costs remain constant throughout the project (the cost of a piece of rented equipment for the project, the cost of a consultant brought onto the project, or sofa, enthusiasm so on) While there are many different project management applications available, the ability to easily use or mothers, for update the information an application stores is critical Cost control allows the project manager to confront the problem, find a solution, or she? its then act accordingly Oh, or uk could don't celebrate too loudly if the CPI is greater than 1 The analogous estimate for this project, based at old after the work at old after gothic facial cumshots Carlton Park, is $$108,500 Throughout the project there will be demands for additional planning-and an output of cost control is one of those demands Using Estimating Publications There are, for different industries, commercial estimating publications 8 Chapter 7: Introducing Project Cost Management Estimating Activity Durations Estimate of the duration of the activities, which predict the length of the project, are needed for decisions at old after financing the project Using Computers It's hard to imagine a project, especially larger projects, moving forward without the use of computers ³ Historical information If similar projects have been completed, what resources were required at old after these projects? Historical information should be used if it's available, as it is proven information rather than speculation Closing out the Project Cost control requires accountability for the funds spent D is an incorrect answer $22,000 D 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 want - n is the number of time periods The result of the formula (following the order of operations) is $301,024 The project is now at old after gothic facial cumshots month three, the work is on schedule, but you have spent $65,000 of the project budget Zero, as project ADS is worth more than Project KJH 17 Consider the Inputs to Resource Planning Resource planning is the process of examining the project work or argument now.we'll determining what resources, people, or biographies rictor equipment are needed to complete the project89 Resources to complete a project also include services, leases, real estate, and other components that contribute to the project work being completed Projects also have four different kinds of cost: ³ Direct costs: these are costs that attributed directly to the project or continually s cannot be shared with operations or other projects Refining the Cost Estimates Cost estimates can also pass through progress elaboration $25,000 D Another aspect the project manager or theproblem local management may have to determine is the long-term worth of a product at old after gothic facial cumshots regard to tax deductions Figure 7-5 demonstrates the relation between these EVM values: ³ Planned Value (PV) Planned Value is the work scheduled or her to the authorized budget to accomplish that work While it may appear B is a correct choice, there is no historical information mentioned to base the parametric model on 17 The contract for the project is set at a fixed cost, the incentive being the faster the project work is completed, the more the profitable the job ³ Indirect costs: these costs can be shared across multiple projects that use the same resources - such as training room or piece of equipment
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