- Cost Control Point
-
 The point within a program at which costs are entered and controlled. Frequently, the cost control point for a program is either the cost account or the work package. [D00391]
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WST |
- Cost Control System
- Any system of keeping costs within the bounds of budgets or standards based upon work actually performed. Cost Control is typically a level in the budget element breakdown structure. [D00392]
|
WST |
- Cost Curve
- A graph plotted against a horizontal time scale and cumulative cost vertical scale. [D03821]
|
PNG |
- Cost Distribution
- Usually refers to the distribution of overhead (indirect) costs on some logical basis, e.g. the time or cost of all associated direct cost activities. [D02581]
|
RMW |
- Cost Effective
- Better value for money, or the best performance for the least cost. [D00393]
|
PMK87 |
- Cost Element
-
 A unit of costs, typically in the form of direct labor, direct materials, other direct costs, and indirect or burdened costs. [D04625]
|
QWF |
- A unit of costs to perform a task or to acquire an item. The cost estimated may be a single value or a range of values. [D00394]
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WST |
- Cost Engineering
- An area of engineering principles where engineering judgment and experience are used in the application of scientific principles and techniques to problems of cost estimation, cost control, business planning and management science. [D04954]
|
043 |
- Technique for planning and controlling costs. [D00395]
|
NPMT |
- Cost Envelope
- The area bounded by a cost curve based on early start dates of activities and a cost curve based on late start dates of activities. [D03822]
|
PNG |
- Cost Estimate
- The expected costs to perform a task or to acquire an item. Cost estimates may be a single value or a range of values. [D04626]
|
QWF |
- Cost Estimate Classification System
- A five-level cost estimate system based on the amount of project information available developed by the American Association of Cost Engineers, Class 5 is the least definitive.
[D04955]
|
048 |
- Cost Estimating
- The process of developing a credible predicted cost of an activity, work package or entire project by evaluating the work, materials, overhead and risks involved. [D05625]
|
RMW |
- The process of predicting the costs of a project. [D00397]
|
WST |
- The process of assembling and predicting the costs of a project. It includes economic evaluation, project investment cost and the prediction of future trends and costs. [D00396]
|
PMK87 |
- Cost Estimating Relationship
- A technique used to estimate a particular cost or price by using an established relationship with an independent variable. See also Parametric Estimating. [D03481]
|
GAT |
- Cost Forecast
- An estimate of an expected future expenditure. [D02582]
|
RMW |
- Cost Forecasting
- The activity of predicting future trends and costs within the project duration. These activities are normally marketing oriented. However, such items as sales volume, price and operating cost can affect the project profitability analysis. Items that affect the cost management functions are: predicted time/cost, salvage value, etc. [D00398]
|
PMK87 |
- Cost Growth
- The net change of an estimated or actual amount over a base figure previously established. [D02297]
|
DSMC |
- Legitimate increase in projected cost due to approved increases in scope.
Editor's Note: Not to be confused with the effects of Scope Creep. [D05307]
|
RMW |
- Cost Incurred
- Costs identified through the use of the accrued method of accounting or costs actually paid. Costs include direct labor, direct materials, and all allowable indirect costs. [D00399]
|
WST |
- Cost Index
- An offeror listing of all cost or pricing data and information accompanying or identified in a proposal for purposes of establishing a cost reference baseline for subsequent adjustments. [D03483]
|
RMW |
- Cost Indices
- Tables of unit costs compiled on a regular basis that indicate cost trends, especially for estimating purposes. [D02583]
|
RMW |
- Cost Input
- The cost, except general and administrative (G&A) expenses, which for contract costing purposes is allocable to the production of goods and services during a cost accounting period. [D03482]
|
GAT |
- Cost Management
- The effective financial control of the project through evaluating, estimating, budgeting, monitoring, analyzing, forecasting and reporting the cost information. [D00402]
|
WST |
- The function required to maintain effective financial control of the project throughout its life cycle. [D00400]
|
FWH |
- The function required to maintain effective financial control of the project through the processes of evaluating, estimating, budgeting, monitoring, analyzing, forecasting, and reporting the cost information. [D00401]
|
PMK87 |
- Cost Management Plan
- The documented and agreed policies, procedures and guidelines for directing and controlling the project's cost. A part of the Project Management Plan. [D05626]
|
RMW |
- Cost Model
- A tabulated presentation of logical element cost estimates summed to a total estimate for the whole. [D02298]
|
RMW |
- Subdivides the total construction cost into costs for functional facility elements and systems, for example: Building Exterior Envelope. This leads to fewer sub-divisions than the UCI trade subdivisions, since several trades make up the typical enclosure. Useful in value management since it enables complete systems of various types to be compared in linear, square or cubic units of measure. [D00403]
|
CCCP |
- Cost of Money
- A form of indirect cost incurred by investing capital in facilities employed on government contracts. [D00404]
|
WST |
- Cost of Quality
- Those costs associated with:
- quality management activities (prevention and appraisal); and
- correcting deviations.
It does not include the normal costs of performing the work.
Editor's Note: But it may include the cost of catch-up following rework. [D00408]
|
002 10-2
QMPP |
- The cost of quality planning, control, assurance and rework. [D00405]
|
WST |
- The costs incurred to ensure quality. The cost of quality includes quality planning, quality control, quality assurance, and rework. [D00406]
|
PMK96 |
- The total price of all efforts to achieve product or service quality. This includes all work to build a product or service that conforms to the requirements as well as all work that results from non-conformance to the requirements. The cost of quality is divided into internal, i.e. those costs associated with building the product or service, and external, i.e. the costs associated with the product or service after it leaves the originating activity or company. [D00407]
|
PMK87
QMPP |
- Cost Overrun
- The amount by which actual costs exceed the baseline or approved costs. [D02299]
|
RMW |
- The amount by which a contractor exceeds or expects to exceed the estimated costs, and/or the final limitations (the ceiling) of a contract. [D00409]
|
WST |
- Cost Performance Baseline
- See Cost Baseline. [D04362]
|
|
- Cost Performance Index ("CPI")
- The cost efficiency factor representing the relationship between the actual costs expended and the value of the physical work performed. [D04627]
|
QWF |
- Ratio of work accomplished versus work cost incurred for a specified time period. The CPI is an efficiency rating for work accomplished for resources expended. [D00410]
|
WST |
- The ratio of budgeted costs to actual costs (BCWP/ACWP). CPI is often used to predict the magnitude of a possible cost overrun by dividing it into the original cost estimate (original cost estimate/CPI = projected cost at completion). See also earned value. [D00411]
|
PMK96 |
- Cost Performance Indicator ("CPI")
- The ratio of BCWP to ACWP. A positive value (i.e. greater than 1) indicates that costs are running under budget. A negative value (i.e. less than 1) indicates that costs are running over budget i.e. CPI = BCWP / ACWP
[D02245]
|
PMST |
- Cost Performance Measurement Baseline
- The formulation of budget costs, measurable goals, (particularly time and quantities). for the purposes of comparisons, analysis and forecasting future costs. [D00412]
|
PMK87 |
- Cost Performance Ratio ("CPR")
- See Cost Performance Indicator. [D02246]
|
|
- Cost Performance Report ("CPR")
- A monthly cost report generated by the performing contractor to reflect cost and schedule status information for management. [D00413]
|
WST |
- Cost Plan
- Sub divides the total project budget into meaningful cost classes each with its own related outline specification or scope. It provides the first principal frame of reference required for a valid cost control system. [D00414]
|
CCCP |
- A budget which shows the amounts and expected dates of incurring costs on the project or on a contract.
[D04417]
|
APM |
- Cost Plus
- A form of contract for construction work in which the construction contractor is reimbursed for the costs it incurs in performing the work plus a lump sum or percentage fee; hence, cost-plus. This type of contract is favored where the scope of the work is indeterminate or highly uncertain and the kinds of labor, material and equipment needed are also uncertain. Under this arrangement complete records of all time and materials spent by the contractor on the work must be maintained. [D00433]
|
CCCP |
- See also Cost Plus Fixed Fee and Cost Plus Incentive Fee Contracts. [D02584]
|
|
- Cost Plus Fee Contract
- See Cost Plus Percentage of Cost Contract. [D05627]
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Definitions for page C13: 50
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