| A | B |
|---|
| actual cost (AC) | The total of direct and indirect costs incurred in accomplishing work on an activity during a given period |
| analogous estimates | 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, also called top-down estimates |
| baseline | The original project plan plus approved changes |
| bottom-up estimates | A cost-estimating technique based on estimating individual work items and summing them to get a project total |
| budget at completion (BAC) | The original total budget for a project |
| budgetary estimate | A cost estimate used to allocate money into an organization's budget |
| cash flow analysis | A method for determining the estimated annual costs and benefits for a project |
| contingency reserves | Dollars included in a cost estimate to allow for future situations that may be partially planned for (sometimes called known unknowns) and are included in the project cost baseline |
| controlling costs | Controlling changes to the project budget |
| cost baseline | A time-phased budget that project managers use to measure and monitor cost performance |
| cost management plan | A document that describes how cost variances will be managed on the project |
| cost performance index (CPI) | The ratio of earned value to actual cost; can be used to estimate the projected cost to complete the project |
| cost variance (CV) | The earned value minus the actual cost |
| definitive estimate | A cost estimate that provides an accurate estimate of project costs |
| determining the budget | Allocating the overall cost estimate to individual work items to establish a baseline for measuring performance |
| direct costs | Costs that can be directly related to producing the products and services of the project |
| earned value (EV) | An estimate of the value of the physical work actually completed |
| earned value management (EVM) | A project performance measurement technique that integrates scope, time, and cost data |
| estimate at completion (EAC) | An estimate of what it will cost to complete the project based on performance to date |
| estimating costs | Developing an approximation or estimate of the costs of the resources needed to complete the project |
| indirect costs | Costs that are not directly related to the products or services of the project, but are indirectly related to performing the project |
| intangible costs or benefits | Costs or benefits that are difficult to measure in monetary terms |
| known unknowns | Dollars included in a cost estimate to allow for future situations that may be partially planned for (sometimes called contingency reserves) and are included in the project cost baseline |
| learning curve theory | A theory that states that when many items are produced repetitively, the unit cost of those items normally decreases in a regular pattern as more units are produced |
| life cycle costing | Considers the total cost of ownership, or development plus support costs, for a project |
| management reserves | Dollars included in a cost estimate to allow for future situations that are unpredictable (sometimes called unknown unknowns) |
| overrun | The additional percentage or dollar amount by which actual costs exceed estimates |
| parametric modeling | A cost-estimating technique that uses project characteristics (parameters) in a mathematical model to estimate project costs |
| planned value (PV) | That portion of the approved total cost estimate planned to be spent on an activity during a given period. |
| profit margin | The ratio between revenues and profits |
| profits | Revenues minus expenses |
| project cost management | The processes required to ensure that the project is completed within the approved budget |
| rate of performance (RP) | 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 |
| reserves | Dollars included in a cost estimate to mitigate cost risk by allowing for future situations that are difficult to predict |
| rough order of magnitude (ROM) Estimate | A cost estimate prepared very early in the life of a project to provide a rough idea of what a project will cost |
| schedule performance index (SPI) | The ratio of earned value to planned value; can be used to estimate the projected time to complete a project |
| schedule variance (SV) | The earned value minus the planned value |
| sunk cost | Money that has been spent in the past |
| tangible costs or benefits | Costs or benefits that can be easily measured in dollars |
| top-down estimates | 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, also called analogous estimates |
| unknown unknowns | Dollars included in a cost estimate to allow for future situations that are unpredictable (sometimes called management reserves) |
