Project Cost Management

79. Project Cost Management includes all of the following processes EXCEPT:
a) Estimating Cost
b) Resource Leveling..
c) Determine Budget
d) Control Cost

80. Which of the following is not true about estimates cost?

a) Are generally expressed in units of currency (dollars, euro, yen, etc.).
b) The costs for schedule activities are estimated for all resources that will be charged to
the project.
c) Do not generally consider information on risk responses..
d) Involve developing an approximation of the costs of the resources needed to complete
each schedule activity.

81. Project control cost includes all of the following EXCEPT:

a) Informing appropriate stakeholders of approved changes.
b) Monitoring cost performance to detect and understand variances from the cost
baseline.
c) Recording all appropriate changes accurately against the cost baseline.
d) Allocating the overall estimates to individual work packages, in order to establish a
cost baseline..

82. An activity cost estimate includes all of the following resource categories
EXCEPT:
a) Labor.
b) Materials.
c) Equipment.
d) Time shortages..

83. Parametric cost estimating involves:

a) Defining the parameters of the project life cycle.
b) Calculating individual cost estimates for each work package.
c) Using a statistical relationship between historical data and other variables to calculate
a cost estimate..
d) Using the actual cost of a similar project to estimate total project costs.

84. Analogous estimating:

a) Uses bottom-up estimating techniques.
b) Uses the actual cost of previous, similar projects as the basis for estimating the cost of
the current project..
c) Is used most frequently in the later stages of a project.
d) Summarizes estimates for individual work items.

85. Which of the following represents processes concerned with establishing and
controlling the cost baseline?
a) Resource Planning and Cost Containment.
b) Cost Estimating and Cost Budgeting.
c) Cost Budgeting and Cost Control..
d) Resource Planning, Cost Estimating, and Cost Control.

86. Given:
BAC =200
ACC =120
EVC =80
CPIC =0.666
Assuming that current variances are atypical, and that similar variances will not occur in the
future, the estimate at completion (EAC) is:
a) 120.
b) 160.
c) 200.
d) 240..

87. Given:
BAC =200
ACC =120
EVC =80
CPIC =0.666
Assuming that current variances are typical of future variances, the estimate at completion
(EAC) is:
a) 220.
b) 260.
c) 300..
d) 320.

88. The cost baseline has all of the following characteristics EXCEPT:
a) It is a time-phased budget that will be used to measure and monitor cost performance
on the project.
b) It shows the actual cost expenditures throughout the life of the project..
c) It is developed by summing estimated costs by period.
d) It is usually displayed in the form of an S-curve.

89. The estimate at completion (EAC) is the projected or anticipated total final value
for a schedule activity, WBS component, or project when the defined work of the
project is completed. To determine the EAC, assuming no management intervention,
which of the following information is needed?
a) The Earned Value (EV) and the Actual Cost to date (ACC).
b) The Cost Performance Index (CPI) and the Cost Variance (CV).
c) The Actual Cost to date (ACC) and the Cost Performance Index (CPI).
d) The Actual Cost to date (ACC) and the Estimate To Complete (ETC)..

90. The cost management plan has all of the following characteristics EXCEPT:
a) It is based on the project cost estimates, and is separate from the project plan..
b) Can establish variance thresholds for costs or other indicators.
c) May be formal or informal, highly detailed or broadly framed.
d) Documents the cost management processes and their associated tools and techniques.

91. Your schedule analysis has shown that your project has a high likelihood of
experiencing a schedule overrun. You know this because the cumulative EV is much:
a) Higher than the cumulative AC.
b) Higher than the cumulative PV.
c) Lower than the cumulative PV..
d) Lower than the cumulative CPI.

92. Which of the following choices indicates that your project is 9% under budget?
a) The cumulative AC was 100, and the cumulative EV was 110..
b) The cumulative PV was 100, and the cumulative AC was 110.
c) The cumulative AC was 110, and the cumulative EV was 100.
d) The cumulative EV was 100, and the cumulative PV was 110.

93. Earned value technique (EVT) can best be defined as:

a) Analysis of the value of the equipment that has been installed as of the data date.
b) Analysis of the sum of the labor costs, which have been incurred on the project to
date.
c) A method of project performance measurement..
 d) A method of measuring the amount of money that has been spent to date.

94. During the sixth monthly update on a ten-month, $30,000 project, the analysis
shows that the cumulative PV is $20,000, the cumulative AC is $10,000, and the
cumulative EV is $15,000. In planning its action, management can conclude all of the
following from these figures EXCEPT:
a) Less has been accomplished than was planned.
b) Less has been spent than planned.
c) Continuing performance at the same efficiency with no management intervention, the
project will probably be completed ahead of schedule and over budget..
d) Continuing performance at the same efficiency with no management intervention, the
project will probably be completed behind schedule and under budget.

95. In the earned value technique, cost variance is computed as:

a) EV minus PV.
b) EV minus AC..
c) AC minus EV.
d) PV minus EV.

96. Earned value (EV) involves all of the following EXCEPT:

a) The originally allocated budget amount.
b) Actual cost..
c) Value of the budgeted cost of work performed.
d) Budgeted amount for the work actually completed.

97. If cumulative PV = 100, cumulative EV = 98, and cumulative AC = 104, the

project is:
a) Ahead of schedule.
b) Headed for a cost overrun..
c) Operating at project cost projections.
d) Likely to come in under budget at completion.

Cumulative data or questions 98-99:

Item PV AC EV
1 10,000 11,000 10,000
2 9,000 8,000 7,000
3 8,000 8,000 8,000
4 7,000 7,000 5,000

98. Which item is MOST over budget?

a) Item 1
b) Item 2
c) Item 3
d) Item 4..

99. Which item has the LOWEST SPI?

a) Item 1
b) Item 2
c) Item 3
d) Item 4..