FREE Project Cost Management Questions and Answers

Question 1

What do you call the money that is included in a cost estimate to cover potential future events that can only be partially planned for (also known as "known unknowns") and is included in the project cost baseline?

Accepted Answer

Contingency Reserves

Answer

Cost Budgeting

Answer

Estimate at Completion

Answer

Definitive Estimate

Question 2

An organization's budget is often allocated funds based on a cost estimate, or ________.

Accepted Answer

Budgetary Estimate

Answer

Definitive Estimate

Answer

Cost Budgeting

Answer

Cost Management Plan

Question 3

What does revenue less expense mean?

Accepted Answer

Profit

Answer

Indirect Costs

Answer

Profit Margin

Answer

Reserves

Question 4

What are the terms of the expenses or advantages that may be quickly calculated in dollars?

Accepted Answer

Tangible Costs

Answer

Management Reserves

Answer

Indirect Costs

Answer

Schedule Variance

Question 5

What is planned value less earned value?

Accepted Answer

Schedule Variance

Answer

Schedule Performance Index

Answer

Management Reserves

Answer

Project Cost Management

Question 6

What are the dollars included in a cost estimate to account for unforeseen future events, sometimes known as "unknown unknowns"?

Accepted Answer

Management Reserves

Answer

Parametric Modeling

Answer

Rough Order of Magnitude

Answer

Reserves

Question 7

Controlling budget fluctuations for projects is referred to as _________.

Accepted Answer

Cost Control

Answer

Cost Management Plan

Answer

Cost Baseline

Answer

Cost Estimating

Question 8

The proportion of earned value to real cost is ________ . It can be used to calculate the project's anticipated cost of completion.

Accepted Answer

Cost Performance Index

Answer

Cost Variance

Answer

Cost Estimating

Answer

Budget at Completion

Question 9

What is the term of the additional percent or sum by which actual costs surpass projections?

Accepted Answer

Overrun

Answer

Additional Cost

Answer

Baseline Cost

Answer

Cost Overhead

Question 10

What is the term for the sum of all direct and indirect expenditures involved in carrying out work on an activity during a specific time period?

Accepted Answer

Actual Cost (AC)

Answer

Earned value (EV)

Answer

Budget at Completion (BAC)

Answer

Schedule Variance (SV)