Cost-estimating relationship (CER)
A mathematical equation that predicts cost as a function of one or more drivers.
Work-breakdown structure (WBS)
A hierarchical list of everything necessary to bring a system to its full operational capability.
Cost-risk analysis
An estimating method that treats WBS item costs and total-system costs as random variables rather than deterministically derived numbers.
Earned-value management
A set of procedures used to track program expenditures and their relationship to the amount of work that has been accomplished.
Percentage standard error
Root-mean-square of all percentage errors made in estimating values of the database using the CER.
Net percentage bias
Algebraic sum of all percentage errors made in estimating values of the database using the CER.
Most likely cost
The mode, the most probable value.
Estimate at completion (EAC)
An estimate of what the final cost of a program will actually be.
Cost-performance index (CPI)
A measure of the efficiency at which dollars are being spent on a project.
Schedule-performance index (SPI)
A measure of the rate at which work is being completed on a project.
Schedule-cost index
The product of the cost-performance index and the schedule-performance index.