CAPM Cost Management 4

Question 1

Which output of the Determine Budget process is used as the basis for measuring project cost performance?

Accepted Answer

Cost baseline

Answer

The cost baseline is the key output of Determine Budget and serves as the reference for measuring cost performance.

Question 2

A project has a TCPI of 1.15. What does this mean for the project team?

Accepted Answer

The team must be 15% more efficient than planned to meet the BAC

Answer

TCPI > 1.0 means the team must work more efficiently than originally planned to finish within the authorized budget.

Question 3

When should a project manager escalate a cost variance issue through the formal change control process?

Accepted Answer

When the variance exceeds established thresholds in the cost management plan

Answer

The cost management plan defines thresholds for when variances require escalation through formal change control.

Question 4

Which cost estimating approach requires the most time and detail but typically provides the most accurate estimates?

Accepted Answer

Bottom-up estimating

Answer

Bottom-up estimating aggregates estimates for individual work packages, requiring more effort but yielding the highest accuracy.

Question 5

A project's Planned Value at month 6 is $120,000, but the Earned Value is $90,000. What is the Schedule Variance?

Accepted Answer

-$30,000

Answer

SV = EV - PV = $90,000 - $120,000 = -$30,000, indicating the project is behind schedule.

CAPM Practice Test