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In software development, effort estimation is the process of predicting the most realistic amount of effort (expressed in terms of person-hours or money) required to develop or maintain software based on incomplete, uncertain and noisy input.
The Constructive Systems Engineering Cost Model (COSYSMO) was created by Ricardo Valerdi while at the University of Southern California Center for Software Engineering. It gives an estimate of the number of person-months it will take to staff systems engineering resources on hardware and software projects.
According to the PMBOK (7th edition) by the Project Management Institute (PMI), Cost variance (CV) is a "The amount of budget deficit or surplus at a given point in time, expressed as the difference between the earned value and the actual cost." [19] Cost variance compares the estimated cost of a deliverable with the actual cost. [20]
Variance analysis can be carried out for both costs and revenues. Variance analysis is usually associated with explaining the difference (or variance) between actual costs and the standard costs allowed for the good output. For example, the difference in materials costs can be divided into a materials price variance and a materials usage variance.
In variance analysis (accounting) direct material total variance is the difference between the actual cost of actual number of units produced and its budgeted cost in terms of material. Direct material total variance can be divided into two components: the direct material price variance, the direct material usage variance.
Price variance (Vmp) is a term used in cost accounting which denotes the difference between the expected cost of an item (standard cost) and the actual cost at the time of purchase. [1] The price of an item is often affected by the quantity of items ordered, and this is taken into consideration.
The variance of randomly generated points within a unit square can be reduced through a stratification process. In mathematics , more specifically in the theory of Monte Carlo methods , variance reduction is a procedure used to increase the precision of the estimates obtained for a given simulation or computational effort. [ 1 ]
It is widely used in industrial engineering to calculate the capital and operating costs of a plant. [1] [2] [3] The factors were introduced by H. J. Lang and Dr Micheal Bird in Chemical Engineering magazine in 1947 as a method for estimating the total installation cost for plants and equipment.