SAB9#71_LINE_BASE_PERFORMANCE_MEASSUREMENT SAB9#72_COST_TYPES

Annotations:

• You’ll get exam questions asking you to use BCR or NPV to compare two projects. The higher these numbers are, the better!

1. TIME BASELINE
   1. Approved schedule
   2. Date of cost
   3. Resources
2. COST BASELINE
   1. Approved budget
   2. Not include the contingence reserve
3. SCOPE BASELINE
   1. Project Scope Statement
   2. WBS
      1. Relation between components and deliveries
   3. WBS Dictionary
      1. Detail of deliveries and description of work each component
4. VARIABLE
   1. Change with the amount of production or work.
5. FIXED
   1. Do not change as production changes.
6. DIRECT
   1. Attributable to the work on the Project.
7. INDIRECT
   1. Cost incurred for the benefit of more than one Project.
8. BENEFIT COST RATIO (BCR)
   1. This is the amount of money a Project is going to make versus how much it will cos to build it.
9. NET PRESENT VALUE (NPV)
   1. This is the actual value at a given time of the Project minus all of costs associate with in. Takes the"time value"
10. OPPORTUNITY COST
    1. It´sthe money yoy don't get because you chose not to do a Project.
11. INTERNAL RATE OF RETURN
    1. This is the amount of money the project will return to the company that is funding it. It’s usually expressed as a percentage of the funding that has been allocated to it.
12. DEPRECIATION
    1. This is the rate at which your project loses value over time.
13. LIFECYCLE COSTING
    1. How much you expect it to cost—not just to develop, but to support the product once it’s in place and being used by the customer.