Question 1: Explain some of the basic principles of cost management, such as profits, life cycle costs, tangible and intangible costs and benefits, direct and indirect costs, reserves, etc… Also what concept do you find the most confusing and why?
Question 2: Explain how Earned Value Management (EVM) can be used to control costs and measure project performance and speculate as to why it is not used more often. What are some general rules of thumb for deciding if cost variance, schedule variance, cost performance index, and schedule index numbers are good or bad?
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