Management reserves Dollars included in a cost estimate to allow for future situations that are unpredictable (sometimes called unknown unknowns). Overrun The additional percentage or dollar amount by which actual costs exceed estimates. Parametric modeling A cost-estimating technique that uses project characteristics (parameters) in a mathematical model to estimate project costs. Planned value (PV) The portion of the approved total cost estimate planned to be spent on an activity during a given period; formerly called the budgeted cost of work scheduled (BCWS). Profit margin The ratio between reve
Management reservesDollars included in a cost estimate to allow
for future situations that are unpredictable (sometimes called
unknown unknowns).OverrunThe additional percentage or dollar amount
by which actual costs exceed estimates.Parametric modelingA
cost-estimating technique that uses project characteristics
(parameters) in a mathematical model to estimate project
costs.Planned value (PV)The portion of the approved total cost
estimate planned to be spent on an activity during a given period;
formerly called the budgeted cost of work scheduled (BCWS).Profit
marginThe ratio between reve
