- Describe why it is necessary to develop a baseline budget for a project. 2. List and describe items that should be included when estimating activity costs. 3. What does the term reserve mean? Should a reserve amount be included in a project proposal? Explain your answer. 5. Describe the project budgeting process. 6. Define the following: TBC, CBC, CAC, CEV, CPI, CV, FCAC, and TCPI. How is each calculated? 7. Why is it necessary to track actual and committed costs once a project starts? 9. Give an example of calculating a cost performance index. What does it mean when the CPI is below 1.0? What does it mean when the CPI is above 1.0? CHAPTER 8 CASE QUESTIONS 1. What would you recommend for the next possible steps? 2. Identify three potential projects to raise funds for the hospital pediatric intensive care unit. 3. Select one of the three projects and identify four risks that could jeopardize the success of the project. 4. Develop a response plan for how each of the four risks can be either avoided or mitigated.
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