CPM CPM Budget & Cost Management

Question 1

In Earned Value Management, what does the Cost Performance Index (CPI) measure?

Accepted Answer

The cost efficiency of budgeted resources

Answer

The rate of schedule progress against the plan

Answer

The total amount of budget spent to date

Answer

The variance between planned and actual scope

Question 2

Which cost estimating technique uses actual costs from similar past projects as a basis for estimating the current project?

Accepted Answer

Analogous estimating

Answer

Bottom-up estimating

Answer

Parametric estimating

Answer

Three-point estimating

Question 3

What is the Budget at Completion (BAC) in Earned Value Management?

Accepted Answer

The total authorized budget for the project

Answer

The actual total cost spent on the project

Answer

The cost variance at project end

Answer

The estimated cost needed to finish remaining work

Question 4

A project has a CPI of 0.85. What does this indicate?

Accepted Answer

The project is over budget

Answer

The project is ahead of schedule

Answer

The project is under budget

Answer

The project is on time and on budget

Question 5

Which process involves aggregating the estimated costs of individual work packages to establish the cost baseline?

Accepted Answer

Determine Budget

Answer

Estimate Costs

Answer

Control Costs

Answer

Plan Cost Management

Question 6

Management reserve in project budgeting differs from contingency reserve in that it is used for:

Accepted Answer

Unknown unknowns or unforeseen work

Answer

Identified risks in the risk register

Answer

Team overtime and bonuses

Answer

Vendor contract overruns