PRM chapter 7

Although information technology projects have a poor track record in meeting schedule goals, they have a great track record in meeting budget goals.

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Costs are often measured in monetary amounts, such as dollars, that must be paid to acquire goods and services.

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Many principles of cost management are unique to project management.

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Most executives are more concerned with profits than with other issues.

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Top management and project managers should never be concerned with the life cycle costs of projects when they make financial decisions.

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It is much more cost-effective to spend money doing early testing on information technology projects than to wait for problems to appear after implementation.

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Labor costs are usually a small percentage of total project costs.

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It is important to thoroughly brainstorm and evaluate alternatives related to resources, especially on projects that involve people from multiple disciplines and companies.

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A ROM estimate’s accuracy is typically -25 percent to +100 percent.

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Analogous estimates are also called top-down estimates.

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