BSBPMG423 - Apply project cost management techniques

I. Assist in Developing Project BudgetActivity 1.1

True orFalse Review the statements below about developing a project budget. Indicate whether each statement is True or False. Tick the box that corresponds to your answer.
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o TRUE o FALSE	The project scoping phase defines the aims of the project, deadlines, deliverables and resource resources that will be used.
o TRUE o FALSE	Deliverables define the desired benefits, outcomes, and performance improvements expected from the project.
o TRUE o FALSE	Project products are the tangible outputs that the project will produce.
o TRUE o FALSE	Estimating the duration is essential, as a longer duration will inevitably lead to lower costs.
o TRUE o FALSE	In labour costs; the lesser hours spent, the more costs are incurred.

Activity 2

Matching Type Listed below are items about cost management strategies and processes. Earned Value (EV) Planned Value (PV) Actual Cost (AC) Earned Value Management (EVM) Match each to their description below, by writing the letter that corresponds to your answer in the space provided.
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Description
	Used to measure the performance of a project in terms of its scope, schedule, and resources
	2. This is the measure of work performed in terms of the approved budget.
	3. This is the approved project budget based on the work breakdown structure components
	4. This refers to the cost incurred for the work that was performed.

{*II. Monitor Project Costs

Activity 3

True orFalse Review the statements below about identifying and reporting variations. Indicate whether each statement is True or False. Tick the box that corresponds to your answer.
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o TRUE o FALSE	Following a discussion with the Project Manager for identified variations and countermeasures, the next step should be creating a project cost status report.
o TRUE o FALSE	2 .The project manager and project assistants must identify problems, work them through to solutions, and document it by the use of an issue register.
o TRUE o FALSE	3. It is your role to identify cost related project issues as early as possible and report those to your Project Manage only after they have been resolved.
o TRUE o FALSE	4. You should never wait until you reach the budget to take action; you should take action as soon as you notice that there is likely to be a cost overrun.
o TRUE o FALSE	5. Being under or at budget is considered an indicator that guarantees the budget is likely to be met by the end of the project.

Activity 4

Matching Type Listed below areproject cost methods, techniques and tools used to identify and report variations. Checklist Flowcharts Forecasting Check sheets Match each to their description below, by writing the letter that corresponds to your answer in the space provided.
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Description
	Is used during budget monitoring to establish whether the budget that is currently still below the approved amount, will be met or exceeded further down the track.
	2. Used for capturing observations you are completing as part of your budget review
	3. This is used to ensure that you have completed all tasks, such as logging all expenditures, checking invoices against records, storing invoices for tax purposes, etc.
	4. Visually describes the budget monitoring process by showing which tasks are to be completed, the sequence of steps, and what if relationship.

Activity 5

Briefly explain the importance on a project of each of the following.

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1. Implementing processes for improving individual performance.

1. Implementing processes for improving overall project effectiveness.

{*III. Contribute to Cost-Finalisation Process

Activity 6

True orFalse Review the statements below about closing the project budget. Indicate whether each statement is True or False. Tick the box that corresponds to your answer.
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o TRUE o FALSE	For the organisation to learn from projects, you and your team must reflect on the project's successes and difficulties in managing project costs.
o TRUE o FALSE	2. It is better to keep the lessons learnt to yourself and then communicate it when the team is unable to figure out a solution.
o TRUE o FALSE	3. Only the Project Manager is required in reviewing the final project outcomes, budget, and costs.
o TRUE o FALSE	4. To assist the organisational learning process, ensure to document and share the learnings and actions taken with others in the organisation through Lessons Learned.
o TRUE o FALSE	5. The project report should also document the project costs and whether the budget was met, and if there were any variations

Activity 7

Explain why it is important to assist in reviewing the final project outcomes, budget, and costs.