CPC Project Budget & Cost Control

Question 1

What is the cost baseline in project management?

Accepted Answer

The approved time-phased budget used to measure and monitor project cost performance

Answer

The initial rough estimate made before planning begins

Answer

The total funds allocated by the sponsor

Answer

The sum of all contingency reserves

Question 2

Analogous estimating uses:

Accepted Answer

Historical data from similar past projects to estimate cost or duration

Answer

Expert opinion from subject matter experts

Answer

Mathematical models to calculate estimates

Answer

Bottom-up summation of all work package estimates

Question 3

Which cost estimate type has the widest accuracy range and is produced earliest in the project?

Accepted Answer

Rough order of magnitude (ROM)

Answer

Definitive estimate

Answer

Bottom-up estimate

Answer

Parametric estimate

Question 4

Management reserve differs from contingency reserve in that:

Accepted Answer

Management reserve covers unknown unknowns, while contingency reserve covers known risks

Answer

Management reserve is controlled by the team; contingency reserve by the sponsor

Answer

They are the same thing with different names

Answer

Contingency reserve covers unknown unknowns

Question 5

A project has spent $50,000 but was supposed to spend $40,000 by this point. This means the project is:

Accepted Answer

Over budget (cost overrun)

Answer

Under budget (cost saving)

Answer

On schedule

Answer

Ahead of schedule

Question 6

Parametric estimating calculates cost or duration by:

Accepted Answer

Multiplying a unit cost or rate by a measurable quantity

Answer

Averaging historical project costs

Answer

Summing individual work package estimates

Answer

Using expert judgment from the team