Cost Account

Test Your Knowledge

Quiz: Cost Accounts

Instructions: Choose the best answer for each question.

1. What is the primary purpose of a Cost Account?

a) To track the overall project budget. b) To monitor the performance of individual project team members. c) To manage and control specific elements of work within a project. d) To allocate resources based on project priorities.

2. Cost Accounts are defined by the intersection of which two organizational structures?

a) Project Charter and Risk Management Plan b) Work Breakdown Structure (WBS) and Organizational Breakdown Structure (OBS) c) Communication Plan and Stakeholder Register d) Scope Management Plan and Quality Management Plan

3. Which of the following is NOT a benefit of using Cost Accounts?

a) Enhanced control over project resources. b) Improved communication among project stakeholders. c) Increased risk of budget overruns. d) Accurate cost estimations.

4. What is the relationship between Cost Accounts and the project schedule?

a) Cost Accounts are created after the schedule is finalized. b) Each Cost Account is linked to a specific schedule timeframe. c) Cost Accounts have no direct impact on the project schedule. d) The project schedule is determined by the total number of Cost Accounts.

5. Which of the following is a synonym for "Cost Account"?

a) Budget Account b) Control Account c) Expense Account d) Project Account

Exercise: Creating a Cost Account

Scenario: You are the project manager for a new software development project. The project scope includes:

• Requirement Gathering & Analysis
• Design & Development
• Testing & Quality Assurance
• Deployment & Training

The project team is structured as follows:

• Development Team: Responsible for Design & Development.
• QA Team: Responsible for Testing & Quality Assurance.
• Deployment Team: Responsible for Deployment & Training.

Task:

1. Create a basic Work Breakdown Structure (WBS) for the project.
2. Define Cost Accounts for each work package in the WBS, using the information about the project team.
3. For each Cost Account, briefly describe the scope of work, the responsible team, and any anticipated costs (you can use estimates).

Example:

WBS:

• 1.0 Software Development
  • 1.1 Requirement Gathering & Analysis
  • 1.2 Design & Development
  • 1.3 Testing & Quality Assurance
  • 1.4 Deployment & Training

Cost Accounts:

• Cost Account 1.1:
  • Scope: Requirement Gathering & Analysis
  • Responsible Team: Project Management Team
  • Anticipated Cost: $5,000 (for resources and external consultants)

Continue this process for each work package in the WBS.

Techniques