Read the cost baseline
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
Fictional North Room welcome-kit project: 100 kits. Approved plan: materials $3 per kit, assembly $4 per kit, one delivery $100. No tax or other fees in this exercise. Baseline version B1 is approved at $800. A separate $50 organizational reserve is not authorized for this project and must not be added to its baseline.
A baseline describes both the work and its planned cost.
Read the cost baseline — guided practice
Build a checked baseline for an approved quantity.
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. Fictional North Room welcome-kit project: 100 kits. Approved plan: materials $3 per kit, assembly $4 per kit, one delivery $100. No tax or other fees in this exercise. Baseline version B1 is approved at $800. A separate $50 organizational reserve is not authorized for this project and must not be added to its baseline.
1. Name scope
Record 100 kits and baseline B1.
You should see: Every planned unit cost refers to the same 100 kits.
Scope makes later comparisons meaningful.
2. Extend unit costs
Multiply materials and labor rates by quantity.
You should see: Materials $300; labor $400.
Rates alone are not project totals.
3. Add fixed cost
Add the one $100 delivery.
You should see: Total $800.
A fixed charge is counted once.
4. Keep reserve separate
Note that $50 is outside current authorization.
You should see: Approved baseline stays $800.
Available organizational money is not automatic project permission.
What to finish
An approved-scope baseline with checked quantities and costs.
Watch for this
Changing the comparison baseline merely because a forecast rises.
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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Pass the check. We’ll save the progress.
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
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
Tools and templates
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Sources and further reading
Explore the references behind this lesson.
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.
Source & access notes · checked 2026-09-12
Search located the exact watch URL; YouTube oEmbed verified title and Edspira channel. Accounting instructor introduction to comparing actual and expected costs. Metadata and source were checked on 2026-09-12; full playback was not tested.
Access: Public YouTube metadata verified; viewing may depend on region/network. Optional; every activity works from written material.
Reuse: Link or embed only. No video download, transcription, or rehosting.
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