FREE Project Management Cost Estimating Questions and Answers

Question 1

Which cost estimating technique involves estimating the cost of individual work packages or activities and then rolling them up to get a total project cost?

Accepted Answer

Bottom-up estimating

Answer

Analogous estimating

Answer

Parametric estimating

Answer

Three-point estimating

Question 2

A project manager is asked to provide a quick cost estimate for a new project that is similar in size and complexity to a previously completed project. Which estimating technique would be MOST appropriate for this initial, high-level estimate?

Accepted Answer

Analogous estimating

Answer

Parametric estimating

Answer

Bottom-up estimating

Answer

Three-point estimating

Question 3

Which of the following is an input to the 'Estimate Costs' process according to the PMBOK Guide?

Accepted Answer

Cost management plan

Answer

Cost baseline

Answer

Project funding requirements

Answer

Work performance reports

Question 4

A project manager is using a statistical relationship between historical data and other variables (e.g., square footage in construction, lines of code in software development) to calculate an estimate. What cost estimating technique is being used?

Accepted Answer

Parametric estimating

Answer

Analogous estimating

Answer

Expert judgment

Answer

Bottom-up estimating

Question 5

When developing a cost estimate, what is the primary purpose of applying reserves (contingency and management reserves)?

Accepted Answer

To account for known-unknowns and unknown-unknowns

Answer

To inflate the budget for potential profit

Answer

To cover scope creep initiated by the client

Answer

To hide cost overruns from stakeholders

Question 6

Which document is an output of the 'Estimate Costs' process and details the quantitative assessment of the likely costs of resources required to complete project activities?

Accepted Answer

Activity cost estimates

Answer

Cost baseline

Answer

Project budget

Answer

Cost management plan