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Project Cost Management

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Project Cost Management

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1. Contingency Reserve

The difference between what was expected and what was experiencedThese forcasting formulas predict the likely completed costs of the project based on current scenarios within the project.This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.

2. Variance

A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.The difference between what was expected and what was experiencedThese forcasting formulas predict the likely completed costs of the project based on current scenarios within the project.

3. Rough order of magnitude

This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.The difference between what was expected and what was experiencedThese forcasting formulas predict the likely completed costs of the project based on current scenarios within the project.A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.

4. Estimate at Completion (EAC)

The difference between what was expected and what was experiencedA contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.These forcasting formulas predict the likely completed costs of the project based on current scenarios within the project.This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.

5. Earned Value (EV)

A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.Earned value is the physical work completed to date and the authorized budget for that work. It is the percentage of the BAC that represents the actual work completed in the project.The difference between what was expected and what was experiencedThis rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.

6. Commercial database

A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.The difference between what was expected and what was experiencedA cost-estimating approach that uses a database, typically software-driven, to create the cost estimate for a project.This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.

7. leaning curve

This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.An approach that assumes the cost per unit decreases the more units workers complete, because workers learn as they complete their required workThe difference between what was expected and what was experienced

8. Known unknown

The difference between what was expected and what was experiencedAn event that will likely happen within the project, but when it will happen and to what degree is unknown. These events, such as delays, are usually risk-related.This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.

9. Variance at Completion (VAC)

The difference between what was expected and what was experiencedA contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.A forecasting formula that predicts how much of a variance the project will likely have based on current conditions within the project. The formula is VAC = BAC - EAC.This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.

10. fixed costs

The difference between what was expected and what was experiencedA contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.Costs that remain constant throughout the life of the project (the cost of a piece of rented equipment for the project, the cost of a consultant brought on to the project, and so on).

11. Single source

Many vendors can provide what your project needs to purchase, but you prefer to work with a specific vendor.A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.The difference between what was expected and what was experienced

12. Cost Management Plan

The cost management plan dictates how cost variances will be managed.This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.The difference between what was expected and what was experiencedA contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.

13. Cost change control system

The difference between what was expected and what was experiencedThis rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.A system that examines any changes associated with scope changes, the cost of materials, and the cost of any other resources, and the associated impact on the overall project cost.

14. Oligopoly

A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.The difference between what was expected and what was experiencedThis rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.A market condition where the market is so tight that the actions of one vendor affect the action of all the others

15. Bottom-Up Estimating

A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.The difference between what was expected and what was experiencedThis rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.An estimating approach that starts from zero, accounts for each component of the WBS, and arrives at a sum for the project. It is completed with the project team and can be one of the most time-consuming and most reliable methods to predict project costs.

16. Sunk costs

The difference between what was expected and what was experiencedThis rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.Monies that have already been invested in a project.

17. Cost of Poor Quality

The difference between what was expected and what was experiencedThe monies spent to recover from not adhering to the expected level of quality. Examples may include rework, defect repair, loss of life or limb because safety precautions were not taken, loss of sales, and loss of customers. This is also known as the cost of nonconformance to quality.This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.

18. Cost of Quality

The monies spent to attain the expected level of quality within a project. Examples include training, testing, and safety precautions.This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.The difference between what was expected and what was experiencedA contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.

19. Funding Limit Reconciliation

A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.The difference between what was expected and what was experiencedThis rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.An organization's approach to managing cash flow against the project deliverables based on a schedule, milestone accomplishment, or data constraints.

20. Variable costs

The difference between what was expected and what was experiencedCosts that change based on the conditions applied in the project (the number of meeting participants, the supply of and demand for materials, and so on).This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.

21. Estimate to Complete (ETC)

This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.The difference between what was expected and what was experiencedAn earned value management formula that predicts how much funding the project will require to be completed. Three variations of this formula are based on conditions the project may be experiencing.

22. Planned Value (PV)

This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.Planned value is the work scheduled and the budget authorized to accomplish that work. It is the percentage of the BAC that reflects where the project should be at this point in time.The difference between what was expected and what was experienced

23. Direct Costs

Costs are attributed directly to the project work and cannot be shared among projects (for example, airfare, hotels, long-distance phone charges, and so on).This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.The difference between what was expected and what was experienced

24. Cost Aggregation

Costs are parallel to each WBS work package. The costs of each work package are aggregated to their corresponding control accounts. Each control account then is aggregated to the sum of the project costs.This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.The difference between what was expected and what was experienced

25. Cost Baseline

A time-lapse exposure of when the project monies are to be spent in relation to cumulative values of the work completed in the project.A contingency allowance to account for overruns in costs. Contingency allowances are used at the project manager's discretion and with management's approval to counteract cost overruns for scheduled activities and risk events.This rough estimate is used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.The difference between what was expected and what was experienced

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25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know? Privacy | Terms |

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All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
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Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com