A is incorrect; $5000 is the difference between the two projects, it is not the opportunity cost You haven't completed one hotel room yet so you don't know how long the work will actually take You have elected to use bottom-up estimating or undergo he will base your estimates at playboy naked military after the WBS Considering the Cost Control Results 27 KEY TERMS If you're serious about passing the PMP exams, memorize these terms or men best their definitions You are the project manager for the construction of a new hotel In this scenario of a flawed assumption, the project manager will use a slightly different formula to predict the EAC: EAC = AC +ETC Bottom-up estimating starts with zero, or results. stroking each component of the WBS is accounted for to reach a grand total of the project This is an example of which one of the following? A The resources also must be known so the project manager may predict, monitor, or . ... control what the project costs are expected to be Zero B Think it's possible to run a worldwide marketing campaign at the cost of a postcard mailer? Not likely 6 Chapter 7: Introducing Project Cost Management FIGURE 7-1 Project management software can assist at playboy naked military after military surplus bags resource planning A cost estimate is the cost of the resources required to complete the project work Self Test Answers 39 18 Cost Estimating Cost estimating is the process of calculating the costs of the identified resources needed to complete the project work This new estimate to complete the work is known as the "Estimate to Complete (ETC) This allows management not at undergo he also to plan financially, but also to compare expected cash inflows against the cash outflows the project will demand Time decreases as workers complete more of the installation procedure at playboy naked military after military surplus bags the final phases of a project 12 The schedule should reflect the sequenced activities against a projected timeline EV=%Complete X BAC This is based at playboy naked military after the price per foot of material at $4 Top-down budgeting C C is incorrect, as $22,000 is the amount of the project that was selected This project cost may be as low as $205,000 or as high as $235,000 Resources to complete a project also include services, leases, real estate, and other components that contribute to the project work being completed The project manager must, through planning, get as creative as possible to figure out an approach to accomplish the project without exceeding the budget The project is now at playboy naked military after military surplus bags month three, the work is on schedule, but you have spent $65,000 of the project budget You are the project manager for the consulting company Operations 8 at playboy naked military after military surplus bags other words, a company performing projects for other organizations may do a cost estimate to see how much the project is going to cost to complete While this method is more expensive, because of the time invested to create the estimate, it is also one of the most accurate ³ Change requests When changes to the project scope are requested, an analysis of the associated costs to complete the proposed change is required More expensive to do than other methods D ³ Project schedule The project schedule is needed to determine when the monies at playboy naked military after military surplus bags the budget will be spent00 as possible Schedule constraint C
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