PMBOK PMBOK Project Cost Management Questions and Answers

Question 1

What is the primary purpose of the Plan Cost Management process in PMBOK?

Accepted Answer

To define how project costs will be estimated, budgeted, managed, and controlled

Answer

Plan Cost Management establishes the policies, procedures, and documentation for planning, managing, expending, and controlling project costs.

Question 2

Which cost estimating technique breaks down deliverables into smaller components and estimates cost at the work package level?

Accepted Answer

Bottom-up estimating

Answer

Bottom-up estimating decomposes work into individual components, estimates cost for each, then aggregates them upward to the total project cost.

Question 3

What is the Budget at Completion (BAC) in cost management?

Accepted Answer

The approved total budget for all project work

Answer

Budget at Completion (BAC) is the total approved budget for all the work in the project, representing what the project was expected to cost.

Question 4

A cost estimate expressed as a range such as -25% to +75% is known as a:

Accepted Answer

Rough order of magnitude (ROM) estimate

Answer

A Rough Order of Magnitude (ROM) estimate, used in early project phases, typically has an accuracy range of -25% to +75% due to limited information.

Question 5

Which PMBOK process produces the Cost Baseline?

Accepted Answer

Determine Budget

Answer

The Determine Budget process aggregates estimated costs of individual activities to establish the authorized cost performance baseline (Cost Baseline).

PMBOK - Project Management Body of Knowledge Practice Test

PMBOK - Project Management Body of Knowledge Practice Test

PMBOK PMBOK Project Cost Management Questions and Answers