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    Questions on Project Cost Management

    An Introduction To Our Online PMP Training Course

    PMP Training - What you receive


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    Questions on Project Cost Management

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    Questions

    1. Reserve Analysis a technique NOT used in:
      1. Estimate Costs
      2. Determine Budget
      3. Control Costs
      4. Estimate Activity Duration
      CORRECT: C
    2. A Project with a total funding of $100,000 finished with a BAC value of $95,000. What term can BEST describe the difference of $5,000?
      1. Cost Variance
      2. Management Overhead
      3. Management Contingency Reserve
      4. Schedule Variance
      CORRECT: C. At completion the BAC represents the revised Cost baseline for the project. Management reserves are not part of the cost baselines but they are part of the Project Funding requirements. Therefore the difference between the Cost Baseline and Funding
    3. Project Cost Management Plan is created as a part of:
      1. Develop Project Management Plan process
      2. Estimate Costs process
      3. Determine Budget process
      4. Control Costs process
      CORRECT: A
    4. A particular project in the domain of civil construction requires that every on-site worker be insured. Which of the following inputs BEST conveys this requirement to the Estimate Costs process so that the insurance cost is estimated and subsequently budgeted:
      1. Enterprise Environmental Factor
      2. Organizational Process Assets
      3. Project Scope Statement
      4. Project Management Plan
      CORRECT: C
    5. _____________ is not a part of the project cost baseline but is included in the project budget:
      1. Activity Cost Contingency Reserve
      2. Management Contingency Reserve
      3. Management Overheads
      4. Project Management Planing
      CORRECT: B
    6. _____________ is not part of the Earned Value calculations.
      1. Known Unknowns
      2. Unknown Unknowns
      3. Project Budget
      4. Amount of work completed
      CORRECT: B
    7. What is the BEST way to make an accurate forecasting of ETC?
      1. Manual Forecasting of cost of remaining work.
      2. BAC – EV
      3. (BAC – EV)/CPI
      4. EAC - AC
      CORRECT: A
    8. If the Earned Value is equal to Actual Cost, it means:
      1. Project is on budget and on schedule
      2. Schedule Variance Index is 1
      3. There is no schedule variance
      4. There is no cost variance
      CORRECT: D. EV – AC = Cost Variance. Therefore if EV = AC, the Cost Variance is zero (i.e. Project is on budget (but not necessarily on schedule, as there is not enough information on schedule variance)
    9. Trend Analysis is BEST described as:
      1. Analyzing performance of similar projects over time
      2. Examining project performance over time
      3. Calculating Earned Value
      4. Calculating Cost Variance
      CORRECT: B
    10. Which of the following is not done as part of Performance Measurements?
      1. Calculating Planned Value
      2. Calculating Earned Value
      3. Calculating ETC
      4. Calculating Cost Variance
      CORRECT: B
    11. Management Contingency Reserve is identified in which process:
      1. Estimate Activity Duration
      2. Estimate Costs
      3. Determine Budget
      4. Estimate Activity Resources
      CORRECT: C
    12. Project Cost Management Plan is created as a part of:
      1. Develop Project Management Plan process
      2. Estimate Cost process
      3. Determine Budget process
      4. Control Cost process
      CORRECT: A. Note that there is no separate process in the Project Cost Estimation knowledge area to develop a cost management plan.
    13. A particular project in the domain of civil construction requires that every on-site worker be insured. Which of the following inputs BEST conveys this requirement to the Cost Estimation process so that the insurance cost is estimated and subsequently budgeted?
      1. Enterprise Environmental Factor
      2. Organizational Process Assets
      3. Project Scope Statement
      4. Project Management Plan
      CORRECT: C. Project Scope Statement usually contains assumptions and constraints.
    14. Analogous Cost Estimating is
      1. Generally Accurate
      2. Generally less accurate
      3. Uses statistical relationship between historical data and other variables
      4. Bottom-up estimating
      CORRECT: B
    15. Which is NOT true about Analogous Cost Estimating
      1. Uses Expert Judgment
      2. Used when reference projects are similar
      3. Does not require high expertise on part of estimators as estimates are based on previous projects
      4. Useful in early phases of the project
      CORRECT: C
    You have answered  of 15 questions correctly.

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