Exam 7: Determining Costs, Budget and Earned Value

It's important that the person estimating the percent complete not only assess how much work has been performed but also consider

The key to effective cost control is to analyze cost performance on a regular and timely basis.

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

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

For a project, the TBC = $200,000, the CEV = $120,000, the CAC = $100,000.Which of the following statements is true?

A method for calculating the forecasted cost at completion assumes that the work to be performed on the remaining portion of the project or work package will be done at the same rate of efficiency as the work performed so far.If the cost performance index is greater than 1.0, then

When evaluating work packages that have a negative cost variance, you should focus on taking corrective actions to reduce the costs of:

The key to managing ____ is to ensure that cash comes in faster than it goes out.

The ____ for the entire project or each work package provides a baseline against which actual cost and work performance can be compared at any time during the project.

In many projects, when large dollar amounts are expended for materials or services that are used over a period longer than one cost reporting period, they can be referred to as ____ costs.

Historical data can be used as a guide on the current project.

To keep track of ____ on a project, it's necessary to set up a system to collect, on a regular and timely basis, data on funds actually expended.

Plot ____ curves on the same graph to reveal any trends toward improving or deteriorating cost performance.

The key to effective cost control is to

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

Large projects would have charge codes for the work package numbers to

If you put off corrective actions until some point in the distant future, the negative cost variance may deteriorate in the project.

Calculate the forecasted cost at completion if the total budgeted cost = $10,000, the CEV is $8,000, and the CAC is $4,000.

It's crucial that cost variances and inefficiencies be identified early so that

Labor costs in the project costs estimate are the estimated costs for the various types or classifications of ____ and are based on the estimated work time (not necessarily the same as the activity estimated duration)and the dollar labor rate for each.