Study your flashcards anywhere!
Download the official Cram app for free >
 Shuffle Toggle OnToggle Off
 Alphabetize Toggle OnToggle Off
 Front First Toggle OnToggle Off
 Both Sides Toggle OnToggle Off
 Read Toggle OnToggle Off
How to study your flashcards.
Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key
Up/Down arrow keys: Flip the card between the front and back.down keyup key
H key: Show hint (3rd side).h key
A key: Read text to speech.a key
20 Cards in this Set
 Front
 Back
Cost Estimating

IN: WBS, Scope Statement
OUT: Activity Cost Estimates 

Cost Budgeting

IN: Activity Cost Estimates
OUT: Cost Baseline 

Cost Control

IN: Cost Baseline
OUT: Cost Updates, Baseline Updates, Corrective Action 

Time Value of Money

Money that we spend today is more expensive than money we will spend 3 years from now.
PV = FV / (1+r)^n 

Net Present Value

Allows comparison of projects with very different budgets, durations, benefits.
Difference between present value of value of cash inflows and present value of cash outflows. 

Payback Period

Number of periods it takes to equate to the project cost.
$3,000 cost of project that provides $1000 per year benefit. Period here is 3 years. 

Internal Rate of Return (IRR)

Calculate financial alternatives based on interest rate of cash inflows and outflows.
Highest IRR is preferred. 

EV

Earned Value
Value of work actually completed. Multiply the % complete by the cost baseline to get the value of what we've done so far. 

PV

Planned Value
Value of work and planned to be completed. Comes from the Cost Baseline. (we dont know the value of the work or how much is complete) 

AC

Actual Cost
What actual costs that have incurred. (we know the completion of work done and its value) 

EAC

Estimate at Completion
BAC/CPI What we think we will actually spend when the project is done. 

CPI

Cost Performance Index
EV/AC Less than 1 means bad, means project cost (AC) more its value (EV). 

CV

Cost Variance
EVAC Less than 1 means bad, means project cost (AC) more its value (EV). 

SV

Schedule Variance
EVPV Less than 1 means bad, means our current completion (EV) is less than planned (PV). 

SPI

Schedule Performance Index
EV/PV Less than 1 means bad, means our current completion (EV) is less than planned (PV). 

Standard Deviation

(PO)/6
Gives the confidence level at which we can give an estimate. Greater the number, the greater the distance between estimates and the greater the risk. 

Cost Baseline

Lists amount to spend on every WBS entry in every day of the project.
Also allows you to calculate how much value we should have created by a certain date (the heart of EV). 

BAC

Budget at Completion
Total approved budget for project 

Variance at Completion

BACEAC
Zero is the best result. 

Time Value of Money

PV = FV / (1+r)^n
r=interest rate n=time in periods What money we spend now, what is it worth in the future. Good calculation for projects whose expenses are well in the future. 