CAPM Cost & Schedule Management Flashcards

Fast tracking as a schedule compression technique involves:

Answer: Performing activities in parallel that were originally planned in sequence

Fast tracking overlaps activities that would normally be done sequentially, reducing overall duration but increasing risk of rework.

What does the Estimate at Completion (EAC) represent in Earned Value Management?

Answer: The expected total cost of the project when it is finished

EAC is the expected total cost of completing all project work, calculated by combining actual costs to date with an estimate for the remaining work.

In project scheduling, what is the difference between a mandatory dependency and a discretionary dependency?

Answer: Mandatory dependencies are legally or contractually required; discretionary are preferred sequencing choices

Mandatory dependencies are inherent in the nature of work or required by contract/law (hard logic), while discretionary dependencies reflect preferred or best-practice sequencing (soft logic).

Which type of cost is incurred regardless of project output, such as executive salaries and facility leases?

Answer: Fixed cost

Fixed costs do not change based on project output or work volume, such as rent, salaries of permanent staff, or equipment lease fees.

What is a contingency reserve in project cost management?

Answer: Budget allocated to handle identified risks with known probability and impact

Contingency reserves are budget amounts added to the cost estimate to account for identified risks (known unknowns) and are part of the cost baseline.

Which scheduling output represents the planned dates for starting and finishing project activities?

Answer: Project schedule baseline

The project schedule baseline is the approved version of the schedule model, showing planned start and finish dates for activities, used to measure schedule performance.