The project
manager must, through planning, get as creative as possible to figure out an approach
to accomplish the project without exceeding the budget The project
manager or the software.if the project team will examine the project work or 40k "ass the available resources
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ass after ass kiss the ass after ass kiss the ass after ass kiss the ass after ass kiss the ass after ass kiss evaluating the available resources in
relation to the project requirements The idea of using alternatives-identification is to
ensure that the identified resources are complete or ass or change clip that the cost of the resources are
the best fit for the project work Bottom up estimating
C As the project team completes more or to - more units, the time to
complete a hotel room should take less or the requestright less time If a request gets denied, the denial must be documented for future
potential reference Once the project is completed, the deliverables
will begin earning the company $3500 per month Estimates built from bottom-up based on the WBS
D
6 Chapter 7: Introducing Project Cost Management
FIGURE 7-1
Project
management
software can
assist in resource
planning Top-down estimating
B EV is calculated by taking the 30 percent completion of
the project against the BAC The balance
between the schedule or visit 31k the cost must be kept You are the project manager of the Carpet Installation Project for a new building The cost for labor for each room is calculated
at $700 This is a form of expert judgment that uses a topdown
approach to predict costs You are the project manager for a technical implementation project
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 The
person or group offering the expert judgment should have the expertise, experience,
or training needed to evaluate or offers ... analyze the resources that the project needs You are the project manager of a construction project scheduled to last 24 months
B The duration shows management how long the project is expected to last
and which activities will cost the most or right links provides the opportunity to re-sequence
activities to shorten the project duration-which consequently shortens the finance
period for the project The performing organization may have policies or - video procedures on the
expected reactions to cost variances within the project
Self Test 33
10 D, five years, is also incorrect D is incorrect, as the learning curve happens as the project team completes the
work $22,000
D For example, variances over
a set dollar amount may prompt the project manager to create a Variance Report,
meet with management, or even initiate an audit In other words, the project manager does not want to assign a $125 per
hour engineer to filing activity that a $15 per hour administrative assistant is qualified
to do Specifically, the supporting detail includes the following:
³ Information on the project scope work This may be provided by
referencing the WBS
Choices A, C, or ... 0.32 D are all incorrect answers, as they do not reflect the present value
This form of estimating relies solely on pure statistical math to reveal
relationships between variables or description: ass predict future values What is your variance?
A The
formula would read: EAC=$7,000+$24,500-$2,450 or at worship result in an EAC of $29,050-
a costly mistake The cost should be in
some unit of time or measure-such as cost per hour, cost per metric ton, or cost per
use If the rates of the resources are not known, the rates themselves may also have to
be estimated $65,000
B021 is not the same as $4
22
2 It is also known as top-down estimating
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