Cost Management Flashcards
7 cards from real CAPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Cost Management flashcards as text
A project manager is reviewing a project with a BAC of $100,000, EV of $60,000, and AC of $70,000. What is the Cost Performance Index (CPI)?
Answer: 0.86
CPI = EV / AC = $60,000 / $70,000 = 0.857, rounded to 0.86, indicating the project is over budget.
Which cost estimating technique relies on historical data from similar past projects to predict current project costs?
Answer: Analogous estimating
Analogous estimating uses historical data from similar projects as a basis for estimating current project costs.
A project has SPI of 1.2 and CPI of 0.9. What does this indicate?
Answer: Ahead of schedule and over budget
SPI > 1 means ahead of schedule, while CPI < 1 means over budget.
What is the Estimate to Complete (ETC) when using the formula ETC = (BAC - EV) / CPI?
Answer: Remaining work priced at the current efficiency rate
ETC = (BAC - EV) / CPI calculates the cost of remaining work based on current cost performance efficiency.
During project execution, the team discovers a $5,000 cost overrun on a $50,000 budget. Which document should be updated first?
Answer: Issue log
Cost variances should be logged in the issue log first for tracking and analysis before initiating a change request.
What is the primary purpose of a cost baseline in project management?
Answer: To measure and monitor cost performance over time
The cost baseline is the approved version of the project budget used to measure and monitor cost performance.
Which type of cost is directly attributable to the project and would not be incurred without it?
Answer: Direct cost
Direct costs are those that can be directly linked to and attributed to a specific project or deliverable.