ITMG221 Week 6 Summary Review QuestionsKeith Jordan
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School
American Military University**We aren't endorsed by this school
Course
ITMG 221
Subject
Accounting
Date
Dec 29, 2024
Pages
3
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Week 6 Summary Review QuestionsKeith Jordan, ITMG221, Dr. Holbert, December 8, 20241.Questions:a)An estimate that is obtained by scaling up an estimate from a similar project is a(n) _Analogous_ estimate.b)Describe the following terms; 1.Analogous Estimate techniqueTaking the estimates from a similar project and scaling them to match the current project.2.Parametric Estimating techniqueMultiplies a standard cost-per-unit value by the number of units in the project.3.Bottom-up Estimating techniqueDetermines the cost of each detail and aggregates them to determine activity cost estimations.2.Questions:a)An estimate that uses standard costs per unit such as price per square foot or price per cubic yard is a Parametric estimate.b)Matching the transfer of funds into the project account with the money spent is called reconciliation.3.Questions:a)Money that is allocated for dealing with unplanned but predictable expenses is a contingency reserve.b)What is a budget timeline?A budget timeline can be looked at as a calendar that sets when and how money is spent or allocated for different aspects of the project. It tracks and plans expenses during a specific time. This identifies how much money and when is needed for all activities and projects.
Week 6 Summary Review QuestionsKeith Jordan, ITMG221, Dr. Holbert, December 8, 20244.Questions:a)The formula used to calculate the cost performance index is _ __CPI=EV/AC__.b)What is the budgeted cost of work performed?Is the budgeted cost of work scheduled that has been done.5.Questions:a)What is cost performance index?The ratio of the earned value to the actual cost. This lets you know how you are performing in relation to your actual spending.b)What is a variance index?is a metric used to evaluate the deviation of a project's performance from its planned baseline. It reflects whether the project is ahead of or behind schedule and whether it is under or over budget.6.Questions:a)T/F - Schedule variance is the difference between the part of the budget that has been done so far (EV) versus the part that was planned by now. Trueb)The formula used to calculate the estimate to complete for atypical cost variances is ___ETC =BAC-EV___Budget at Completion & Earned Value.7.Questions:a)The sum of the budgeted amounts for the tasks that have been performed is the ___Planned Value. (two words).b)Schedule variance is the __EV__ minus the _PV____ and cost variance is the __EV__ minus the _AC____ (use acronyms).8.Questions:
Week 6 Summary Review QuestionsKeith Jordan, ITMG221, Dr. Holbert, December 8, 2024a)Schedule performance index is EV / __PV___ and the cost performance index is _EV____ / __AC____ (use acronyms).b)The revised final budget is the _AC___ plus the _ETC____ (use acronyms).9.Questions:a)What is Earned Value and how is it used to measure project progress?It represents the value of work actually completed at a specific point in time, expressed in terms of the budget authorized for that work.b)What is schedule variance – provide examplesmeasures the difference between the value of work that has been completed (Earned Value, EV) and the value of work that was planned to be completed at a specific point in time (Planned Value, PV).On schedule – BAC $10,000 PV $6,000 EV $6,000 SV= EV-PV. Because they are both 6,000 the project is neither behind nor ahead it is at cost.10.Questions:a)T/F - The schedule performance index (SPI) is the ratio of the earned value and the cost value. False – the planned value not cost value.b)T/F – The final budget is the actual (AC) to this point plus the estimate to complete (ETC). True