Explain a unit-price change
See this course’s project requirements
A reconciled project cost sheet showing baseline, incurred costs, open commitments, forecast to finish, and a supported change recommendation.
Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.
What to include
- An approved-scope baseline with checked quantities and costs.
- A cost register with three non-overlapping categories.
- A price-variance note with invoice and full-project effects.
- A forecast-to-finish sheet and two-cause variance explanation.
- A scope-change request separating incremental work and existing variance.
- A final reconciled cost-control packet with versions, causes and next decision.
Review and revise
Use these criteria to check your work and choose what to improve.
- Every required section is present and traceable to the supplied case facts.
- Decisions separate known facts, assumptions, and unresolved questions.
- Records, calculations, and instructions agree with each other and the stated rules.
- The final revision addresses a changed case and explains what someone should do next.
Want more background?
The idea in everyday life
Materials price is now $3.30 for the same 100 kits, replacing the planned $3. Sixty kits’ materials are received: $198 instead of planned $180. The remaining 40 kits cost $132. Assembly still totals $400 and delivery $100. No extra kit quantity is approved.
Separate the price per unit from the number of units.
Explain a unit-price change — guided practice
Trace a cost variance to a changed assumption.
Use a text editor, a free document editor, or paper. Start from the following fictional records; they reset this lesson even if your earlier answer differed. Materials price is now $3.30 for the same 100 kits, replacing the planned $3. Sixty kits’ materials are received: $198 instead of planned $180. The remaining 40 kits cost $132. Assembly still totals $400 and delivery $100. No extra kit quantity is approved.
1. Check received materials
Multiply 60 by actual $3.30.
You should see: $198 received materials.
The invoice can be checked against quantity and rate.
2. Check remaining materials
Multiply 40 by $3.30.
You should see: $132 remaining materials.
Forecast must use the changed rate for future units too.
3. Compare full materials cost
Compare $330 forecast with $300 baseline.
You should see: $30 over plan from price change.
A partial invoice variance is not the whole-project effect.
4. Rebuild project forecast
Add materials $330, assembly $400 and delivery $100.
You should see: $830 forecast, $30 above baseline.
The explanation links the assumption change to the project total.
What to finish
A price-variance note with invoice and full-project effects.
Watch for this
Calling a price increase a quantity overrun when the kit count is unchanged.
How can I tell I understand it?
Check your result against the worked example, then explain the changed case without using an unstated assumption.
Quick knowledge check
Answer all 3 questions. Get at least 2 right and the lesson completes automatically.
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Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.
Go to the knowledge checkOptional course overview video · same video as Lesson 1
Standard Costs and Variance Analysis
From Edspira. Watch here or open it on YouTube .
Optional course overview. Follow the written steps below at your own pace.Tools, templates, and lesson sources
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Sources and further reading
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Source & access notes · checked 2026-09-12
Inspected March 2020 guide overview: scope, assumptions, documentation and updating estimates with actual costs. Public federal guidance; original small-project case is not an agency procedure.
Access: Public page inspected without an account.
Reuse: Reference link only. Course prose and practice data are original; no third-party text, figures, or templates are reproduced.
Source & access notes · checked 2026-09-12
Inspected February 2015 Appendix H, especially basis of estimate, input assumptions, traceability and presentation of cost drivers.
Access: Public six-page agency PDF; no account.
Reuse: Reference link only. No text, charts, templates or third-party material reproduced.
Source & access notes · checked 2026-09-12
Inspected February 2015 Appendix I on using performance information to update estimates.
Access: Public agency PDF; no account.
Reuse: Reference link only. Course records and arithmetic are independently authored.
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