Cost Management

The flashcards below were created by user mkearse on FreezingBlue Flashcards.

  1. What is value analysis?
    Finding a less costly way to do the same work.
  2. What is cost risk?
    Cost related to risk.
  3. Name the types of costs:
    • Variable cost
    • Fixed cost
    • Direct cost
    • Indirect cost
  4. What are examples of variable cost?
    cost of materials, supplies, and wages
  5. What are examples of fixed cost?
    Cost of set-up, rent, utilities, etc.
  6. What are examples of direct cost?
    • Team travel
    • Team wages
    • Recognition
    • Cost of materials used on the project
  7. What are examples of Indirect cost?
    • Taxes
    • Fringe benefits
    • Janitorial services
  8. Name the 3 ranges of estimates:
    • Rough Order of Magnitude (ROM) Estimates
    • Budget Estimates
    • Definitive Estimates
  9. What is the range of Rough Order of Magnitude (ROM) Estimate?
    -25% to +75%
  10. What is the range of a Budget Estimate?
    -10% to +25%
  11. What is the range of Definitive Estimates?

    or -

    5% to +10%
  12. What is Life cycle costing?
    Involves looking at costs over the entire life of the product, not just the cost of the project to create the product.
Card Set
Cost Management
Rita's Tricks of the Trade
Show Answers