Exam 7: Determining Costs, Budget, and Earned Value

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.

It is important to use the__________ as the standard against which actual cost is compared.

Often, the sum of the initial estimated costs is greater than the amount of funds budgeted by the sponsor. What should be done to arrive at an acceptable budget amount?

Another indicator of cost performance is cost variance (CV). If the cumulative earned value is greater than the cumulative actual costs, then

Allocating total project costs for the various elements to the appropriate work packages will establish

The project cost estimate is allocated to

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

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

Calculate the cost variance if the cumulative earned value is $10 and the cumulative actual costs are $20.

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

In many projects, large dollar amounts are expended for materials or services (subcontractors, consultants) that are used over a period of time longer than one cost reporting period.

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 managing cash flow is to ensure that cash comes in faster than it goes out.

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

Consider a project that involves painting five similar houses over ten weeks (one house every two weeks) for a total budgeted cost of $20,000. The budget is $4,000 per house. At of the end of week 5, you determine that $10,000 has actually been spent and three houses have been painted completely. What is the earned value of the project?

The _____ is the product of the percent complete and the sum of the estimated costs of all the specific activities that make up a work package or the project.

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

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

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

The ____ is the amount that was budgeted to accomplish the work that was schedule to be performed up to that point in time.