FREE Cost Management Questions and Answers

Question 1

A project manager is directing her team in the development of the s-curve, cost baseline, and requirements for project funding. Which process is being led by the project manager's team?

Accepted Answer

Determine budget

Answer

Plan cost management

Answer

Control costs

Answer

Estimate costs

Question 2

If a project has an earned value (EV) of $1,000, an actual cost (AC) of $950, and a planned value (PV) of $1,000, what is the cost variance (CV)?

Accepted Answer

50

Answer

0

Answer

-50

Answer

1.05

Question 3

A minor scope change was requested by a customer, who expects it to be finished quickly and cheaply. The project manager thinks they have enough authority to decide for themselves, but they are unsure. The project manager should now decide what to do.

Accepted Answer

Use the perform Integrated Change Control process and submit this to the change control board (CCB) for approval.

Answer

Exploit this change opportunity and calculate the cost ,risk and time then add a reasonable margin and submit to the customer.

Answer

Keep the change pending and decide to take this up as part of final settlement at the end of the project

Answer

Use the project contingency and implement the change without charging the customer, since the customers satisfaction is top priority.

Question 4

A project uses staff hours as the unit of measure for resources, rounds activity estimate data to the nearest $100, and has a variance threshold of 10% deviation from the initial plan. Usually, these would be recorded in the

Accepted Answer

Cost management plan

Answer

Project charter

Answer

WBS

Answer

Scope Statement

Question 5

The cost performance index (CPI) is 1.1 and the schedule performance index (SPI) is 0.95, according to a project manager who is preparing a project status update. What is the progress of the project?

Accepted Answer

under budget and behind schedule

Answer

Over budget and ahead of schedule

Answer

under budget and ahead of schedule

Answer

Over budget and behind schedule

Question 6

The project manager made the choice to include indirect costs in his cost estimate while overseeing a big project. Which of the following statements is accurate if indirect costs are factored into estimates?

Accepted Answer

Indirect costs should be included at the activity level and/or higher levels

Answer

Indirect costs should only be included in earned value measurements and not in cost estimates.

Answer

Indirect costs must be included at the activity level only

Answer

Indirect costs should not be included in cost estimates

Question 7

For Motor Cars, Corp., you oversee projects. For the Human Resources division, you are working on a project that will take a year to complete. The EV and PV are calculated at $35,000 and $45,000, respectively, three months into the project. Which of the options below best encapsulates the SV value?

Accepted Answer

-$10,000

Answer

1.29

Answer

$10,000

Answer

0.78

Question 8

What kind of expense is an example of a cost for the particular project the cost of operating a project management office?

Accepted Answer

Indirect

Answer

Direct

Answer

Reimbursable

Answer

Fixed

Question 9

Project manager Peter is providing an update on the state of his endeavor. He anticipates that the project will be completed a month earlier than expected based on the performance indices. He does anticipate that the project will cost more than anticipated. What can you tell us about the project's schedule performance index (SPI)?

Accepted Answer

The SPI is greater than 1. 0

Answer

The SPI equals the CPI

Answer

The SPI is less than 1. 0

Answer

The SPI is equal to 1. 0

Question 10

What will your schedule variance be at the conclusion of a project?

Accepted Answer

Zero

Answer

Equal to the total PV

Answer

Equal to the total EV

Answer

One