Project Cost Management Principles Quiz

Cost management is a process used in project planning that involves estimating, determining budgets, and controlling costs.

Cost management policies, procedures, and documentation are determined to plan, execute, and control project costs.

Cost estimating involves developing an approximation of costs for resources needed to complete a project using techniques such as expert judgment and project estimating software.

Determining the budget involves allocating overall cost estimates to individual work items to establish a baseline for measuring performance.

Controlling costs involves controlling changes to the project budget by monitoring cost performance, validating change requests, and informing stakeholders for authorization.

Earned value management (EVM) is a project performance measurement technique that integrates scope, time, and cost data to determine how well a project is meeting goals.

Profits are revenues minus expenditures, and profit margin is the ratio of profits to revenues.

Life cycle costing provides a big-picture view of the cost of a project throughout its life cycle.

Cash flow analysis is a method for determining the estimated annual costs and benefits for a project and the resulting annual cash flow.

Direct costs are related to process for creating products and services, while indirect costs are indirectly related to performing work on the project.

Sunk costs are money that has been spent in the past.

Important considerations in preparing cost estimates include providing supporting details, labor costs, and potential inaccuracies.

The cost budgeting process involves determining the cost to individual material resources or work items over time based on activities in the WBS.

Cost control involves controlling changes to the project budget using monitoring cost performance, validating change requests, and informing stakeholders for authorization.

EVM calculates three values for each activity or WBS: the planned value (authorized budget), actual cost (cost for completed work), and earned value (PV for all completed work).

Cost management plan includes level of accuracy, units of measure, organizational procedures links, control thresholds, reporting formats, process descriptions, and more.

Cost estimating process outputs include activity cost estimates, basis of estimates, and project documents updates.

Cost control process outputs include work performance information, cost forecasts, change requests, project management plan updates, and project documents updates.

Cost management is a process used in project planning that involves estimating, determining budgets, and controlling costs.

Cost management policies, procedures, and documentation are determined to plan, execute, and control project costs.

Cost estimating involves developing an approximation of costs for resources needed to complete a project using techniques such as expert judgment and project estimating software.

Determining the budget involves allocating overall cost estimates to individual work items to establish a baseline for measuring performance.

Controlling costs involves controlling changes to the project budget by monitoring cost performance, validating change requests, and informing stakeholders for authorization.

Earned value management (EVM) is a project performance measurement technique that integrates scope, time, and cost data to determine how well a project is meeting goals.

Profits are revenues minus expenditures, and profit margin is the ratio of profits to revenues.

Life cycle costing provides a big-picture view of the cost of a project throughout its life cycle.

Cash flow analysis is a method for determining the estimated annual costs and benefits for a project and the resulting annual cash flow.

Direct costs are related to process for creating products and services, while indirect costs are indirectly related to performing work on the project.

Sunk costs are money that has been spent in the past.

Important considerations in preparing cost estimates include providing supporting details, labor costs, and potential inaccuracies.

The cost budgeting process involves determining the cost to individual material resources or work items over time based on activities in the WBS.

Cost control involves controlling changes to the project budget using monitoring cost performance, validating change requests, and informing stakeholders for authorization.

EVM calculates three values for each activity or WBS: the planned value (authorized budget), actual cost (cost for completed work), and earned value (PV for all completed work).

Cost management plan includes level of accuracy, units of measure, organizational procedures links, control thresholds, reporting formats, process descriptions, and more.

Cost estimating process outputs include activity cost estimates, basis of estimates, and project documents updates.

Cost control process outputs include work performance information, cost forecasts, change requests, project management plan updates, and project documents updates.

Cost management is a process used in project planning that involves estimating, determining budgets, and controlling costs.

Cost management policies, procedures, and documentation are determined to plan, execute, and control project costs.

Cost estimating involves developing an approximation of costs for resources needed to complete a project using techniques such as expert judgment and project estimating software.

Determining the budget involves allocating overall cost estimates to individual work items to establish a baseline for measuring performance.

Controlling costs involves controlling changes to the project budget by monitoring cost performance, validating change requests, and informing stakeholders for authorization.

Earned value management (EVM) is a project performance measurement technique that integrates scope, time, and cost data to determine how well a project is meeting goals.

Profits are revenues minus expenditures, and profit margin is the ratio of profits to revenues.

Life cycle costing provides a big-picture view of the cost of a project throughout its life cycle.

Cash flow analysis is a method for determining the estimated annual costs and benefits for a project and the resulting annual cash flow.

Direct costs are related to process for creating products and services, while indirect costs are indirectly related to performing work on the project.

Sunk costs are money that has been spent in the past.

Important considerations in preparing cost estimates include providing supporting details, labor costs, and potential inaccuracies.

The cost budgeting process involves determining the cost to individual material resources or work items over time based on activities in the WBS.

Cost control involves controlling changes to the project budget using monitoring cost performance, validating change requests, and informing stakeholders for authorization.

EVM calculates three values for each activity or WBS: the planned value (authorized budget), actual cost (cost for completed work), and earned value (PV for all completed work).

Cost management plan includes level of accuracy, units of measure, organizational procedures links, control thresholds, reporting formats, process descriptions, and more.

Cost estimating process outputs include activity cost estimates, basis of estimates, and project documents updates.

Cost control process outputs include work performance information, cost forecasts, change requests, project management plan updates, and project documents updates.