CPP Budgeting & Resource Management 3

Question 1

A project has BAC = $500,000, EV = $300,000, and AC = $350,000. What is the Cost Performance Index (CPI)?

Accepted Answer

0.86

Answer

CPI = EV / AC = $300,000 / $350,000 ≈ 0.86, indicating the project is getting $0.86 of value for every dollar spent.

Question 2

Which cost estimating technique uses statistical relationships between historical data and project variables to produce a single-point cost estimate?

Accepted Answer

Parametric estimating

Answer

Parametric estimating uses statistical/mathematical models based on historical parameters (e.g., cost per square foot) to derive the estimate.

Question 3

When a project manager applies the 'fast-tracking' schedule compression technique, what is the MOST likely impact on the project budget?

Accepted Answer

Budget may increase due to rework from parallel activities

Answer

Fast-tracking runs sequential activities in parallel, which increases the risk of rework and therefore can increase overall project costs.

Question 4

A resource calendar defines which of the following for project planning purposes?

Accepted Answer

When and for how long each resource is available to work on the project

Answer

A resource calendar documents the availability, working hours, vacations, and other constraints for each project resource.

Question 5

Life cycle costing differs from project budgeting primarily because it:

Accepted Answer

Includes all costs from inception through disposal of the deliverable

Answer

Life cycle costing accounts for the total cost of ownership across all phases—design, implementation, operations, and disposal—not just the project execution phase.

(CPP) Certified Project Professional Practice Test

(CPP) Certified Project Professional Practice Test

CPP Budgeting & Resource Management 3