CPP Budgeting & Resource Management 2

Question 1

A project manager discovers mid-project that actual costs are running 15% above the budget baseline. Which response is MOST appropriate under CPP standards?

Accepted Answer

Perform variance analysis and update the cost forecast

Answer

CPP standards require variance analysis followed by an updated forecast (EAC) before any corrective action is decided.

Question 2

Which formula correctly calculates the Estimate at Completion (EAC) when future work is expected to be performed at the budgeted rate?

Accepted Answer

EAC = AC + (BAC - EV)

Answer

EAC = AC + (BAC - EV) assumes remaining work will be completed at the planned rate regardless of past performance.

Question 3

A resource histogram shows a team member is allocated at 140% capacity for three consecutive weeks. What is the FIRST action a project manager should take?

Accepted Answer

Level resources by adjusting task sequencing or assignments

Answer

Resource leveling—adjusting task timing or assignments—is the standard technique to resolve overallocation before resorting to overtime.

Question 4

The To-Complete Performance Index (TCPI) is calculated as (BAC − EV) / (BAC − AC). A TCPI of 1.25 indicates what?

Accepted Answer

Remaining work must be completed at a rate 25% more efficient than planned

Answer

A TCPI greater than 1.0 means the team must improve efficiency on remaining work to finish within the original budget.

Question 5

Which reserve type is used to address 'known-unknown' risks and is included in the project cost baseline?

Accepted Answer

Contingency reserve

Answer

Contingency reserves cover identified risks (known-unknowns) and are included in the project cost baseline.

(CPP) Certified Project Professional Practice Test

(CPP) Certified Project Professional Practice Test

CPP Budgeting & Resource Management 2