Project funding and forecasting clarification

Submitted by nbk on Thu, 07/14/2011 - 01:03

Please share your thoughts on these


A Project with a total funding of $100,000 finished with a BAC value of $95,000. What term can BEST describe the difference of $5,000?
1.Cost Variance
2.Management Overhead
3.Management Contingency Reserve
4.Schedule Variance


Answer 3, What is the assumption here ?


 What is the BEST way to make an accurate forecasting of ETC?
1.Manual Forecasting of cost of remaining work.
2.BAC – EV
3.(BAC – EV)/CPI
4.EAC - AC



Answer 1. My choice was 4 ,

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rahultoraskar

Thu, 07/14/2011 - 05:28

I'd like to take 2nd question first. Following are my thoughts.

I agree with the answer 1 because the question asks for 'BEST' way to make accurate ETC.

Option 1 talks about bottom-up approach where you sum up cost of the all remaining work which will tell you accurate ETC.

My thoughts on question 1:

Answer 3 is correct because the management contingency reserve is planned for unknown unknown which is on top of the budget (which involves known unknowns).

Hence, option 3 is more appropriate.

 

 

 

Dernamasa Greta (not verified)

Tue, 11/06/2012 - 11:13

The emphasis will be on transportation project management, because this is where the first instance of reference class forecasting occurred. government-grant grants for college