Estimates within the project must be mapped to the correct code of accounts so that the organization's ledger reflects the actual work performed, the cost of the work performed, or who playing; any billing (internal or external) that was charged to the customer for the completed work Categories include the following: ³ Labor costs ³ Material costs Analyzing Cost Estimating Results 13 Don't worry too much about regression analysis for the exam21 Variable costs D The project team members' recollections of what things cost should not be trusted as fact Historical information from a recently completed project B Recall the formula for present value? It's PV= FV/(1+R)n; PV is the present value, FV is the future value, R is the interest rate, or of of n is the number of time periods D is incorrect, as analogous estimating is not more accurate The BAC is the budget at completion, which is $290,000 You should be familiar with the concept, but don't invest too much time memorizing these formulas for the exam89 D You are the project manager of the Carpet Installation Project for a new building ³ Top-down estimating: uses a similar project as a cost baseline or 2008 center factors in current project conditions to predict costs The range of variance for the estimate can be -5 percent to +10 percent
A What is your earned value? A Analyzing Cost Estimating Results The output of cost estimating is the actual cost estimates of the resources required to the complete the project work 72 months D Management has requested that you study the work method to determine a faster, less costly, or .© blog better method to complete the project Less expensive to do than other methods 12 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 21 If the company chooses Project A the opportunity cost is $50,000 because the company misses out at Slut City Swingers CD-1 after the opportunity The earned value is calculated by multiplying the percentage of completion, 40 percent, by the BAC, which is $600,000, for a value of $240,000 For example, cost per hour, cost per metric ton, or cost per cubic yard D is incorrect; operations do not fully describe the expenses unique to the product The "why" behind the variances allows the project manager to make appropriate decisions at Slut City Swingers CD-1 after future project actions ³ Bottom-up Starts with zero or 1 a,.gb3 adds up all the expenses At the end of the five years the expected worth of the equipment is $1,000 This is a great method for equipment that you don't anticipate to have around for a very long time-such as computer equipment93 cents at Slut City Swingers CD-1 after the dollar  B, C, or parents D are incorrect calculations of the earned value formula You have not considered the law of diminishing returns The rough order of magnitude is the least accurate approach, as it may vary from -25 percent to +75 percent Those nine cents at Slut City Swingers CD-1 after every dollar sure do add up! Accounting for Flawed Estimates Imagine a project to install a new operating system at Slut City Swingers CD-1 after 1000 workstations Let's pretend the ETC the project team arrived at was $175,000 This is an example of which one of the following? A Rough order of magnitude B This is an example of which one of the following? A One of the assumptions the project team made was that each workstation had the correct hardware to install the operating system automatically
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