Exam 7: Determining Costs, Budget, and Earned Value

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.

Equipment costs in the project costs estimate are for equipment

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

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

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

Managing cash flow involves making sure that sufficient payments are received from the customer in time so that

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

_____ involves the following: Analyzing cost performance to determine which work packages may require corrective action, Deciding what specific corrective action should be taken, and Revising the project plan-including time and cost estimates-to incorporate the planned corrective action.

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

Cost estimates should be unreasonable and excessive.

It is important to manage the cash flow on a project.

Costs are ________ when an item is ordered even though actual payment may take place at some later time.

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

The contractor's outflow of cash can be controlled by

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

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

Travel costs in the project costs estimate are for

It is good practice to have the person who will be responsible for the costs associated with the work make the cost estimates.

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

There are two approaches to establishing the total budgeted cost for each work package: