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What is value analysis?
Finding a less costly way to do the same work.
What is cost risk?
Cost related to risk.
Name the types of costs:
What are examples of variable cost?
cost of materials, supplies, and wages
What are examples of fixed cost?
Cost of set-up, rent, utilities, etc.
What are examples of direct cost?
Cost of materials used on the project
What are examples of Indirect cost?
Name the 3 ranges of estimates:
Rough Order of Magnitude (ROM) Estimates
What is the range of Rough Order of Magnitude (ROM) Estimate?
-25% to +75%
What is the range of a Budget Estimate?
-10% to +25%
What is the range of Definitive Estimates?
5% to +10%
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.
Rita's Tricks of the Trade