Time & Cost Management Flashcards

A project has a Planned Value (PV) of $50,000, Earned Value (EV) of $45,000, and Actual Cost (AC) of $42,000. What is the Cost Variance (CV)?

Answer: $3,000

CV = EV - AC = $45,000 - $42,000 = $3,000, indicating the project is under budget.

What is the purpose of a resource histogram in project time management?

Answer: To display resource usage over time periods

A resource histogram is a bar chart that shows the amount of time a resource is scheduled to work over a series of time periods.

What does 'free float' (free slack) mean in schedule network analysis?

Answer: The time an activity can be delayed without delaying the early start of its successor

Free float is the amount of time an activity can be delayed without impacting the earliest start of any successor activity.

Which process involves identifying the sequence of activities that represents the longest path through the schedule network?

Answer: Develop Schedule

Develop Schedule integrates all schedule inputs including the critical path analysis to produce the project schedule.

A project manager uses parametric estimating. The historical rate is $500 per unit and the project requires 200 units. What is the cost estimate?

Answer: $100,000

Parametric estimating multiplies the unit rate by the quantity: $500 × 200 = $100,000.

What is the Estimate to Complete (ETC) when using the typical EAC formula and assuming future work will be performed at the budgeted rate?

Answer: BAC - EV

ETC = BAC - EV when future work is assumed to proceed at the planned (budgeted) rate, regardless of past performance.

Which scheduling output document shows the planned start and finish dates for each project activity?

Answer: Project Schedule

The project schedule, often displayed as a Gantt chart, shows planned start and finish dates for all scheduled activities.