Fixed costs and variable costs

direct costs and indirect costs

Opportunity cost, marginal cost and sunk cost

Bottom-up estimation

three point estimate

parameter estimation

analogy estimation

expert judgment

…

Similar to schedule estimation

cost

Estimate basis

Rough magnitude estimate of ROM (floating range 100%, -25%~75%)

Budget estimate (floating range 35%, -10%~25%)

Certainty estimate (floating range 15%, -5%~10%)

cost basis

Project funding requirements

Plan value PV

Earned value EV

Actual cost AC

EV is on the left Find PV for progress and AC for cost. Subtract the deviation and divide the exponent.

The bigger the EV, the better

SV>0, CV>0, (over schedule, budget balance) well done, keep up the good work;

SV＞0, CV＜0, (over schedule, budget overrun) too much effort, arrange the work reasonably;

SV＜0, CV＞0, (schedule behind schedule, budget surplus) spend the cost to grab the progress and rush the work;

SV<0, CV<0, (schedule behind schedule, budget overrun) the project has a problem and needs to be analyzed and changed to solve;

Budget at Completion (BAC): The total budget for performing the work

Estimated to Complete (ETC): The estimated cost to complete the remaining work

Estimate at Completion (EAC): The total expected cost to complete all work, equal to the actual cost to date plus the remaining budget for completion

deviation