All Cost Management questions

There are three processes involved with cost management. The first process is cost estimating. The second process involved with cost management strategies is cost budgeting. The third and final process is cost control.

Four different cost types are typically associated with the scope of work in a cost class. They reflect whether a cost is authorized, contractually committed, spent or forecast for spending. These types are: 1. Authorized Appropriation, 2. Committed Cost, 3. Expenditure (or Actual) 4. Estimate To Complete, or Forecast to Complete, or Uncommitted.

The plan for the effective financial control of the project through evaluating, estimating, budgeting, monitoring, analyzing, forecasting and reporting the cost information.

Money available for disbursement. Typically refers to the source of funding for project activities.

The selection of resources in type and quantity required to complete a project.

The inflow and outflow of funds. A time-based record of income and expenditures, often presented graphically.

All questions related to cost management for contracting.

All questions related to cost budgeting.

Any system of keeping costs within the bounds of budgets or standards based upon work actually performed.

The process of assembling and predicting the costs of a project. It includes economic evaluation, project investment cost and the prediction of future trends and costs.

Calculating approximately the probable cost or value.

Actual cost of work completed to date plus the predicted costs and schedule for finishing the remaining work.

The development of a management plan that uses alternative strategies to ensure project success if specified risk events occur.

The concept of including acquisition, operating, and disposal costs when evaluating various alternatives.

The cost efficiency factor representing the relationship between the actual costs expended and the value of the physical work performed.

One measure of completion used to determine the remaining duration of a partially completed activity.

A measure of the value of work performed so far. Earned value uses original estimates and progress-to-date to show whether the actual costs incurred are on budget and whether the tasks are ahead or behind the baseline plan.

The methods and techniques used to examine technical and cost data to determine the economic potential and the practicality of project applications. It involves the use of techniques such as the time value of money so that projects may be evaluated and compared on an equivalent basis. Interest rates, present worth factors, capitalization costs, operating costs, depreciation, etc., are all considered.

A formal inquiry into the financial progress, results, or some other financial aspect of a project or system.

Monetary return for services rendered or property delivered. Discharge of indebtedness.

The expected level at which the excess of revenue over the total cost of producing the product or products for which the calculation is made.

The correction of defective work. May take place either before, during or after inspection or testing.

All events, both positive and negative whose probabilities are neither 0% nor 100%. Uncertainty is a distinct characteristic of the project environment.

A generic term for a unit within a work breakdown structure (WBS) at the lowest level of its branch, not necessarily at the lowest level of the whole WBS. It may be used to refer to a unit of work performed within the organization, while 'Commitment Package' may be used for work contracted or purchased outside the organization.