Exam 7: Determining Costs, Budget and Earned Value

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.

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

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

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

The contractor's outflow of cash can be controlled by

The total project cost is often estimated during the phase of the project or when the project charter or a proposal is prepared

Cumulative actual cost (CAC) should be calculated to compare to the cumulative budgeted cost (CBC).

The contractor might try to negotiate payment terms that require the customer to do one or more of the following except

Calculate the cost variance if the cumulative earned value is R10 and the cumulative actual costs are R20.

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.

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

When the CPI goes below 1.0 or gradually gets smaller, corrective action should not be taken; the project is performing well.

At the beginning of the project, it may not be possible to estimate the costs for all activities with a level of confidence regarding their accuracy.This is especially true for

The is the amount that was budgeted to achieve the work that was scheduled to be performed up to that point in time.

Facilities costs in the project costs estimate are for

Determining the earned value involves collecting data on the percentage complete for each work package and then converting this percentage to a Rand amount by multiplying the_____ of the work package by the percentage complete.

If the cumulative earned value is R10 and the cumulative actual costs are R20, then the CPI is

Consider a project that involves painting five similar houses over ten weeks (one house every two weeks) for a total budgeted cost of R200 000.The budget is R4 0000 per house.At of the end of week 5, you determine that R100 000 has actually been spent and three houses have been painted completely.What is the earned value of the project?

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

As data are collected on , including portions of any committed cost, they need to be totaled by work package so that they can be compared to the