ch7_451

downtime

Since organizations depend on reliable information technology, there are also huge costs associated with ____.

cost budgeting

The main goal of the ____ process is to produce a cost baseline for measuring project performance and project funding requirements

Project managers

____, with assistance from financial experts in their organizations, should create estimates of the costs and benefits of the project for its entire life cycle

Project cost management

____ includes the processes required to ensure that a project team completes a project within an approved budget.

Bottom-up estimates

____ involve estimating individual work items or activities and summing them to get a project total.

Determining the budget

____ involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance

1

Using simplified percentage complete amounts for a one-year project with weekly reporting and an average task or work packet size of one week, you can expect about a(n) ____ percent error rate

EV

Variances are calculated by subtracting the actual cost or planned value from ____.

Management reserves

____ allow for future situations that are unpredictable

Contingency reserves

____ allow for future situations that may be partially planned for.

Indirect costs

____ are costs that are not directly related to the products or services of the project, but are indirectly related to performing the project

Tangible costs

____ are those costs that an organization can easily measure in dollars

cost baseline

A ____ is a time-phased budget that project managers use to measure and monitor cost performance.

rough order of magnitude estimate

A ____ is done very early in a project or even before a project is officially started

definitive estimate

A ____ is used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs

budgetary estimate

A ____ is used to allocate money into an organization's budget

rough order of magnitude estimate

A ____ provides an estimate of what a project will cost

parametric model

A(n) ____ might provide an estimate of $50 per line of code for a software development project based on the programming language the project is using, the level of expertise of the programmers, the size and complexity of the data involved, and so on.

direct costs

Project managers should focus on ____, since they can control them

definitive estimate

If the cost estimate will be the basis for contract awards and performance reporting, it should be a ____ and as accurate as possible

56

The Standish Group's CHAOS studies reported an average cost overrun for unsuccessful IT projects ranged from 180 percent in 1994 to ____ percent in 2004

EV

The ____ is an estimate of the value of the physical work actually completed.

EAC

The ____ is an estimate of what it will cost to complete the project based on performance to date

PV

The ____ is that portion of the approved total cost estimate planned to be spent on an activity during a given period

RP

The ____ is the ratio of actual work completed to the percentage of work planned to have been completed at any given time during the life of the project or activity

CPI

The ____ is the ratio of earned value to actual cost and can be used to estimate the projected cost of completing the project

SPI

The ____ is the ratio of earned value to planned value and can be used to estimate the projected time to complete the project

AC

The ____ is the total direct and indirect costs incurred in accomplishing work on an activity during a given period.

controlling costs

The project management plan, project funding requirements, work performance data, and organizational process assets are inputs for the process of ____.

33-34

Three separate surveys of software project cost overruns found that the average cost overrun for all of the projects in their survey samples (not just unsuccessful projects) were ____ percent.

four

Tom DeMarco, a well-known author on software development, suggests ____ reasons for the inaccuracies of many information technology project cost estimates and some ways to overcome them.

Life cycle costing

____ helps you develop an accurate projection of a project's financial costs and benefits.

Estimating costs

____ involves developing an approximation or estimate of the costs of the resources needed to complete a project

Cash flow analysis

____ is a method for determining the estimated annual costs and benefits for a project and the resulting annual cash flow

Earned value management

____ is a project performance measurement technique that integrates scope, time, and cost data.

CV

____ is the earned value minus the actual cost

SV

____ is the earned value minus the planned value

Profit margin

____ is the ratio of revenues to profits

Sunk costs

____ should be forgotten

Analogous estimates

____ use the actual cost of a previous, similar project as the basis for estimating the cost of the current project