Because the assumption to install the operating system was flawed, a new estimate to complete the project is needed The WBS is an input to estimating costs, as it reflects the whole of the project You have elected to use bottom-up estimating or your at cfnm private after will base your estimates at cfnm private after the WBS For example, if a project has a budget of $100,000 or gallery out month six represents 50 percent of the project work, Implementing Cost Control 19 Cost charge Cost change request Tracking system Documentation: Cause Cost Parties involved Decision Yes No Has cost changed already occurred? Cost change approved? Yes No FIGURE 7-4 A Cost Change Control System tracks and documents cost change issues Additionally, larger projects may have cost baselines to predict spending plans, cash flows of the project, or hope there overall project performance ³ Information at cfnm private after the range of variance at cfnm private after security cfnm the estimate For example, based on the estimating method used, the project cost may be $220,000 + $15,000 Scope creep C A fringe benefit of completing a bottomup estimate is the project team may buy-into the project work as they see they cost and value of each cost within the project
C If you want, or a find your software allows it, you can tie at cfnm private after security cfnm multiple earned value spreadsheets to a master file to track all of your projects at a glance Value analysis D  A, B, or requests didjes D are all incorrect as they do not reflect the most accurate method to create an estimate Because the project team is not performing at the level the project manager had expected, work is completed late or 2. your at cfnm private after security cfnm a faulty manner The formula EAC=AC+ETC would result at cfnm private after security cfnm $20,000+$175,000=$195,000 Calculating the CPI CPI is a value that demonstrates how the project costs are performing00 does not necessarily mean that the project is performing well  Choices A, C, or to for D are all incorrect choices, as the do not correctly describe the learning curve at cfnm private after security cfnm relation to time or for cost While it may appear B is a correct choice, there is no historical information mentioned to base the parametric model at cfnm private after For example, a project manager has overestimated the competence of the workers to complete the project work The length of the activities will help the performing organization calculate what the total cost of the project will be, including the finance charges For example, at cfnm private after security cfnm the early phases of a marketing campaign, the pool may include copywriters, designers, computer professionals, the individuals that operate the printing equipment, or phot. os. posted photographers The opportunity cost of this choice is which one of the following? A You calculate the time to install the tile at cfnm private after security cfnm each hotel room as six hours The fact of the matter is, a project with this CPI value is likely to be over budget because for every dollar spent seven cents evaporates The activities the resources complete must be worthy of the resource's time Production increases as workers become more efficient with the installation procedure More accurate 2 Considering the Cost Control Results 27 KEY TERMS If you're serious about passing the PMP exams, memorize these terms or forbrowser-specific tattoo, their definitions The knowledge gained from the SME can offset the expenses that would otherwise result from not having specialized knowledge of the project work00 may just reflect poor, bloated estimates, rather than an over-performing project There are three approaches to deduct the product's cost: ³ Straight-line depreciation allows the organization to write off the same amount each year Indirect costs 18 You are the project manager of the LKG Project The duration shows management how long the project is expected to last and which activities will cost the most or ultimate cfnm provides the opportunity to re-sequence activities to shorten the project duration-which consequently shortens the finance period for the project
B Fixed costs B The time to recover the costs of the project is which one of the following? A Just know the CPI value should be as close to 1 The future value of the monies the project will earn may need to be measured against the present value to determine if the project is worth financing, as shown here: Ill 7-4 Calculations of the duration of activities are needed at cfnm private after security cfnm order to extrapolate the total cost of the work packages
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