Exam (elaborations)
Qme 6665 Chapter 7 Questions And Answers With Verified Solutions 100% Correct!!!
- Course
- Institution
Qme 6665 Chapter 7 Questions And Answers With Verified Solutions 100% Correct!!!
[Show more]
Content preview
Qme 6665 Chapter 7 Questions AndAnswers With Verified Solutions 100%
Correct!!!
Actual cost (AC) - ANSWER✔✔ The actual Amount of monies the project has spent
to date.
Analogous estimating - ANSWER✔✔ An approach that relies on historical
information to predict the cost of the current project. It is also known as top-
down estimating and is the least reliable of all the cost-estimating approaches.
Bottom-up estimating - ANSWER✔✔ An estimating approach that starts from
zero, accounts for each component of the WBS, and arrives at a sum for the
project. It is completed with the project team and can be one of the most time-
consuming and most reliable methods to predict project costs.
Budget estimate - ANSWER✔✔ An estimate that is somewhat broad and is used
early in the planning process as well as in the top-down estimates. The range of
variance for the estimate can be from -10 percent to +25 percent.
Commercial database - ANSWER✔✔ A cost-estimating approach that uses a
database, typically software-driven, to create the cost estimate for a project.
Contingency reserve - ANSWER✔✔ A contingency allowance to account for
overruns in costs. Contingency reserves are used at the project manager's
discretion and with management's approval to counteract cost overruns for
scheduled activities and risk events.
, Cost aggregation - ANSWER✔✔ Cost are parallel to each WBS work package. The
costs of each work package are aggregated to their corresponding control
accounts. Each control account then is aggregated to the sum of the project costs.
Cost baseline - ANSWER✔✔ A time-lapse exposure of when the project monies
are to be spent in relation to cumulative values of the work completed in the
project.
Cost budgeting - ANSWER✔✔ The cost aggregation achieved by assigning specific
dollar accounts for each of the scheduled activities or, more likely, for each of the
work packages in the WBS. Cost budgeting applies the cost estimates over time.
Cost change control system - ANSWER✔✔ A system that examines any changes
associated with scope changes, the cost of materials, and the cost of any
resources, and the associated impact on the overall project cost.
Cost management plan - ANSWER✔✔ A plan that dictates how cost variances will
be managed.
Cost of poor quality - ANSWER✔✔ The monies spent to recover from not
adhering to the expected level of quality. Examples may include rework, defect
repair, loss of life or limb because safety precautions were not taken, loss of sales,
and loss of customers. This is also known as the cost of nonconformance to
quality.
Cost of quality - ANSWER✔✔ The monies spent to attain the expected level of
quality within a project. Examples include training, testing, and safety
precautions.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller classhub. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81113 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now