# Shared Flashcard Set

## Details

COM5450-07
Terms of Chapter 7
40
Management
10/24/2011

## Additional Management Flashcards

Term
 LEARNING CURVE
Definition
 Theory that states when many items are produced repetitively, the unit cost of those items decreases in a regular pattern as more units are produced
Term
 TOP DOWN
Definition
 A cost estimating technique that uses the actual cost of a previous, similar project as the basis for estimating the cost of the current project.
Term
 PROFITS
Definition
 Revenues minus expenses
Term
 EVM
Definition
 A project performance measurement technique that integrates scope, time, and cost data
Term
 PROJECT COST MANAGEMENT
Definition
 The processes required to ensure that the project in completed within the approved budget
Term
 EARNED VALUE
Definition
 An estimate of the value of the physical work actually completed
Term
 COST ESTIMATION
Definition
 Developing an approximation or estimate of the costs of the resources needed to complete the project.
Term
 TANGIBLE
Definition
 Costs or benefits that an organization can easily measure in dollars
Term
 MANAGEMENT RESERVE
Definition
 Dollars included in a cost estimate to allow for future situations that are unpredictable (unknown unknowns)
Term
 COST VARIANCE
Definition
 EV-AC
Term
 BAC
Definition
 The original total budget for a project.
Term
 SCHEDULE VARIANCE
Definition
 EV-PV
Term
 INDIRECT
Definition
 Costs that are not directly related to producing the products and services of the project, but are indirectly related to performing the project
Term
 BASELINE
Definition
 The original project plan plus approved changes.
Term
 PARAMETRIC
Definition
 Type of modeling that uses project characteristics (parameters) in a mathematical model to estimate project costs
Term
 RP
Definition
 The ratio of acutal work completed to the percentage of work planned to have been completed at any given time during the life of the project or activity
Term
 COST MANAGEMENT PLAN
Definition
 A document that describes how the organization will manage cost variances on the project
Term
 SUNK COST
Definition
 Money that has been spent in the past
Term
 ANALOGOUS
Definition
 A cost estimating technique that uses the actual cost of a previous, similar project as the basis for estimating the cost of the current project
Term
 BUDGET DETERMINATION
Definition
 Allocating the overal cost estimate to individual work items to establish a baseline for measuring performance.
Term
 COST BASELINE
Definition
 A time-phased budget that project managers use to measure and monitor cost performance
Term
 CASH FLOW
Definition
 An analysis that determines the estimated annual costs and benefits for a project and the resulting annual cash flow
Term
 COSTCONTROL
Definition
 Controlling changes to the project budget
Term
 CONTINGENCY RESERVE
Definition
 Dollars included in a cost estimate to allow for future situations that may be partially planned for (known unknowns)
Term
 DIRECT
Definition
 Costs that can be directly related to producing the products and services of the project
Term
 LIFECYCLE COSTING
Definition
 Considers the total cost of ownership, or development plus support costs, for a project
Term
 INTANGIBLE
Definition
 Costs or benefits that are difficult to measure in monetary terms
Term
 BUDGETARY
Definition
 A cost estimate used to allocate money into an organization's budget
Term
 OVERRUN
Definition
 The additional percentage or dollar amount by which actual costs exceed estimates
Term
 PLANNED VALUE
Definition
 The portion of the approved total cost estimate planned to be spent on an activity during a given period
Term
 ACTUAL COST
Definition
 The total of direct and indirect costs incurred in accomplishing work on an activity during a given period
Term
 EAC
Definition
 BAC/CPI
Term
 COST
Definition
 A resource sacrificed or foregone to achieve a specific objective
Term
 ROM
Definition
 Cost estimate prepared very early in the life of a project to provide a rough idea of what a project will cost
Term
 CPI
Definition
 EV/AC
Term
 BOTTOM UP
Definition
 Estimating individual work items or activities and summing them to get a project total
Term
 PROFIT MARGIN
Definition
 The ratio between revenues and profits
Term
 DEFINITIVE
Definition
 A cost estimate that provides an accurate estimate of project costs
Term
 RESERVES
Definition
 Dollars included in a cost estimate to mitigate cost risk by allowing for future situations that are difficult to predict
Term
 SPI
Definition
 EV/PV"
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