FIT2002 Lecture Notes - Lecture 8: User Story, Cost Estimate, Whole-Life Cost
25 Jul 2018
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Document Summary
Cost overrun: additional percentage of dollar amount by which actual costs exceed estimates. Cost: resource sacrificed or foregone to achieve a specific objective or something given up in exchange. Project cost management: processes required to ensure that the project is completed within an approved budget. Project cost management processes: planning: planning cost management: determining the policies, procedures and documentation that will be used for planning, executing and controlling project cost. Ouput: cost baseline: monitoring and controlling: controlling costs: controlling changes to the project budget. Profit margin: is the ratio of profits to revenues. Life cycle costing: considers the total cost of ownership, or development plus support costs, for a project. Cash flow analysis: determines the estimated annual costs and benefits for a project and resulting annual cash flow. Learning curve theory: states that when many items are produced repetitively, the unit cost of those items decreases in a regular pattern as more units are produced.
