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Wideman Comparative Glossary of Common Project Management Terms v3.1 is copyright by R. Max Wideman, March 2002.

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Corporate Standards - to - Cost Effective

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Term
Definition     Editor's Choice
 
Source
Corporate Standards
The overall standards espoused at the corporate level. [D02572]

 RMW
Corporate Supervision
Supervision exercised from the corporate level. [D02573]

 RMW
Corporation
A group of individuals legally empowered to transact business as one body. [D02574]

 RMW
A company or business formed by law in which shares of stock are offered as an incentive for investment. [D02575]

 PMDT
Correction
The elimination of a defect. [D00372]

 FAR 46.701
QMPP
Corrective Action
Changes made to bring expected future performance of the project into line with the plan. [D00375]

 PMK96
Action for the purpose of adjusting for deviations from a project plan. In Quality Management, Corrective Actions are those measures taken to rectify conditions adverse to specified quality, and where necessary, to preclude repetition. [D00373]

 NPMT
PMK87
In Cost Management, the development of changes in plan and approach to improve the performance of the project [D00374]

 RMW
Reactive actions taken to:
  1. return the project to plan and
  2. ensure that identified variances will never recur.
[D04054]

 CSM
Correlation
The relationship between two or more variables. [D02576]

 PMDT
Cost
The cash value of project activity. [D00379]

 PMK87
Cost can be divided into internal and external expenses. External costs can be controlled by contracts and budgets for each phase of a project and for each deliverable or work product. Internal cost is the cost of project resources. [D00377]

 WST
See Project Cost. [D00378]

  
Cost Account
An accounting system identifier used by project participants to charge time and other allowable charges to a project. In Performance Measurement Systems, the Cost Account usually comprises work packages and is the lowest summation level in the Work Breakdown Structure. [D04055]

 CSM
The intersection of the program's work breakdown structure (WBS) and organizational breakdown structure (OBS). In effect, each cost account defines what work is to be performed and who will perform it. Cost accounts are the focal point for the integration of scope, cost, and schedule. Also called Control Account. [D00380]

 WST
A cost account defines what work is to be performed, who will perform it and who is to pay for it. Cost accounts are the focal point for the integration of scope, cost, and schedule. Another term for Cost Account is Control Account. [D04412]

 APM
Cost Account Breakdown
The segregation of the entries in a cost account into logical subgroups. [D02577]

 RMW
Cost Account Manager ("CAM")
A member of a functional organization responsible for cost account performance, and for the management of resources to accomplish such tasks. [D00381]

 WST
Cost Account Plan ("CAP")
The management control unit in which earned value performance measurement takes place. [D00382]

 WST
Cost Accumulation Methods
The various ways in which the entries in a set of cost accounts may be aggregated to provide different perspectives on the information. [D02578]

 RMW
Cost Analysis
The analysis of the cost elements of a proposal or on-going work. It includes verification of cost data, evaluation of all elements of costs, and projection of these data to determine the effect on price. [D04056]

 CSM
Cost Applications
The processes of applying cost data to other techniques that have not been described in the other processes. [D00383]

 PMK87
Cost Avoidance
An action taken in the present designed to decrease costs in the future. [D02294]

 RMW
Cost Baseline
A time-phased budget used to measure and monitor cost performance. It is developed by summing estimated costs by period and is usually displayed in the form of an S curve. [D04361]

 PMK96
Cost Benefit
The comparison of the cost versus the benefit expected (of a project) usually for purposes of evaluating alternative forms of investment. [D02579]

 RMW
Cost Benefit Analysis
An analysis of the relationship between the costs of undertaking a task or project, initial and recurrent, and the benefits likely to arise from the changed situation, initially and recurrently.
Note: The hard tangible, readily measurable benefits may sometimes be accompanied by soft benefits which may be real but difficult to isolate, measure and value. The analysis allows comparison of the returns from alternative forms of investment. [D04413]

 APM
BS
The analysis of the potential costs and benefits of a project which allows comparison of the returns from alternative forms of investment. [D03818]

 PNG
Cost Breakdown Structure
A system for dividing a project into
  1. Hardware elements and subelements
  2. Functions and subfunctions
  3. Cost categories
to provide for more effective management of the project. [D02296]

 DSMC
A hierarchical structure that rolls budgeted resources into elements of costs, typically labor, materials and other direct costs. [D00384]

 WST
Hierarchical breakdown of a project into cost elements. [D04414]

 APM
BS
Cost Budgeting
The allocation of cost estimates to individual project components. [D00385]

 WST
The process of establishing budgets, standards and a monitoring system by which the investment costs of the project can be measured and managed. that is, the establishment of the control estimate. It is vital to be aware of the problems "before the fact" so that timely corrective action can be taken. [D00386]

 PMK87
Cost Ceiling
The sum of the Project Cost Target plus the project's Contingencies cost allowances. [D03779]

 SU
Cost Ceiling Bracket
A projected Cost Ceiling within a considered range, applicable to those projects where there is particular risks involved or the scope definition is incomplete. [D03780]

 SU
Cost Center
The smallest unit of activity or area of responsibility against which costs are accumulated; defined sections in the corporate system, representing units of responsibility as well as accounting units.
Editor's Note: While popular as a means of exercising corporate control, competition between cost centers can work to the disadvantage of the organization as a whole. [D02580]

 RMW
Location, person, activity or project in respect of which costs may be ascertained and related to cost units. [D04415]

 APM
BS
Cost Check
A periodic estimate to give an up-to-date analysis of cost compared to progress on a design or construction work item. [D00387]

 CCCP
Cost Classes
Subdivision of the total scope of work in a project forming the project breakdown structure and to which costs are assigned. [D00388]

 CCCP
Cost Code
Unique identity for a specified element of work. Code assigned to activities that allow costs to be consolidated according to the elements of a code structure. [D04416]

 APM
BS
Cost Codes
Codes allocated to activities which allow costs to be consolidated according to the elements of the coding structure. [D03819]

 PNG
Cost Control
Any system of keeping costs within the bounds of budgets or standards based upon work actually performed.
Editor's Note: Not just for the work actually performed to date but the updated estimated cost at completion. [D04624]

 QWF
System for planning and following up disbursements in relation to budget. [D00389]

 NPMT
The processes of gathering, accumulating, analyzing, reporting and managing the costs on an on-going basis. Includes project procedures, project cost changes, monitoring actual versus budget, variance analysis, integrated cost/schedule reporting, progress analysis and corrective action. [D00390]

 PMK87
The discipline of reconciling planned and actual money figures to physical parts of the project. Cost control also involves careful treatment of changes (including claims), trend forecasting and authorization for payment. Cash flow forecasting is also a cost control function. [D03820]

 PNG
The work of ensuring that costs fall within budgeted estimates by monitoring actual costs against control estimates, flagging actual or potential deviation, preparing forecasts and recommending actions to be taken to keep costs in line with target. [D04953]

 SCL
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]

 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
Definitions for page C10: 50


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