You’ll get exam questions
asking you to use BCR
or NPV to compare two
projects. The higher these
numbers are, the better!
TIME BASELINE
Approved schedule
Date of cost
Resources
COST BASELINE
Approved budget
Not include the contingence
reserve
SCOPE BASELINE
Project Scope
Statement
WBS
Relation between
components and deliveries
WBS Dictionary
Detail of deliveries and
description of work each
component
VARIABLE
Change with the amount of
production or work.
FIXED
Do not change as production
changes.
DIRECT
Attributable to the work on
the Project.
INDIRECT
Cost incurred for the benefit
of more than one Project.
BENEFIT COST RATIO (BCR)
This is the amount of money a Project is going
to make versus how much it will cos to build it.
NET PRESENT VALUE (NPV)
This is the actual value at a given
time of the Project minus all of costs
associate with in. Takes the"time
value"
OPPORTUNITY COST
It´sthe money yoy don't get because
you chose not to do a Project.
INTERNAL RATE OF RETURN
This is the amount of money the project will
return to the company that is funding it. It’s
usually expressed as a percentage of the funding
that has been allocated to it.
DEPRECIATION
This is the rate at which your
project loses value over time.
LIFECYCLE COSTING
How much you expect it to cost—not just to develop,
but to support the product once it’s in place and being
used by the customer.