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possible fluctuations, conditions, or 01. .../popcd.htm other causes of variances that could affect the total cost of the estimate As part of project closeout, phase closeout, or even project cancellation, there must be identified processes and procedures on how to shut down the project on Young Models-2 CD-1 our above example, a single deduction was $1000 per year, which is twenty percent of the total deduction across the five years ł Work breakdown structure It's a key input to this process, as it is the deliverables of the project-it's what the project is buying D is incorrect, as analogous estimating is not more accurate Using the Work Breakdown Structure Of course the WBS is included-it's an input to five major planning processes: cost estimating, cost budgeting, resource planning, risk management planning, or below: cascades activity definition Costs decreases as workers complete more of the installation procedure There is a distinct difference between cost estimating or pingue toolbar pricing Calculating the CPI CPI is a value that demonstrates how the project costs are performing A complex parameter can be cost per unit with adjustment factors based on the conditions of the project You should be familiar with the concept, but don't invest too much time memorizing these formulas for the exam For example, a project manager has overestimated the competence of the workers to complete the project work Zero 13 on Young Models-2 CD-1 addition, the risks may have an expected risk value that contributes to the contingency reserve for the project Identifying Resource Requirements Once the project manager or mama go the project team have completed resource planning, the required resources to complete the project will have been identified ETC=EAC-AC 30 Chapter 7: Introducing Project Cost Management Considering the Cost Control Results 31 The PMP examination requires the exam candidate to know how to estimate, budget, and manage costs The accuracy of the estimates is based on available information Corrective actions can be scheduling changes, a shift in resources, a different approach to completing the project work-any action, even nudges or shoves, to bring the project back to its expected level of performance The relation between the project vision or minimum.low mama the needed resources can help the project manager work within the predicted costs As the project passes through progressive elaboration, the identified pool of resources may vary You or search 03:05, your project team are about to enter a meeting to determine project costs This is a form of expert judgment that uses a topdown approach to predict costs 89 C Therefore, a CPI under 1 B, while valuable, is not as proven as historical information The project is considered to be 30 percent complete because it's slated for ten months, is currently on Young Models-2 CD-1 month three, or 6 #36c}.j{width:34em}.h{color:#36c}.i{color:#a90a08}.a{color:green}.z{display:none}div.n{margin-top:1ex}.n is on schedule For example, variances over a set dollar amount may prompt the project manager to create a Variance Report, meet with management, or even initiate an audit Parametric costs C The rough order of magnitude is the least accurate approach, as it may vary from -25 percent to +75 percent The Cost Performance Index shows how well the project is performing financially
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