CSIT214 Lecture Notes - Lecture 6: Whole-Life Cost, Sunk Costs, Cash Flow
7 Aug 2018
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Week 6: project cost management cost: resource sacrificed or foregone to achieve a specific objective or something given up in exchange cost overrun: additional percentage or dollar amount by which actual costs exceed estimates. Typical problems with it cost estimates: estimates are done too quickly, people lack estimating experience, human beings are biased toward underestimation, management desires accuracy. Project cost control: monitoring cost performance, ensuring that only appropriate project changes are included in a revised cost baseline informing project stakeholders of authorized changes to the project that will affect costs. Ev is based on the original planned costs for the project or activity and the rate at which the team is completing work on the project or activity to date. Rate of performance (rp): 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.
