PMBOK PMBOK Project Cost Management Questions and Answers 3

Question 1

What is a Control Account in PMBOK cost management?

Accepted Answer

A management control point where scope, budget, and schedule are integrated and measured

Answer

A bank account used to manage project disbursements

Answer

An account tracking only actual project expenditures

Answer

A reserve fund for handling cost overruns

Question 2

What is the variance at completion (VAC) and what does a negative VAC mean?

Accepted Answer

VAC = BAC - EAC; a negative value means the project is projected to exceed the original budget

Answer

VAC = EV - AC; a negative value means work is completed under budget

Answer

VAC = PV - AC; a negative value means the project is ahead of schedule

Answer

VAC = BAC - AC; a negative value means costs are under control

Question 3

Which cost estimation technique uses a statistical relationship between historical data and project variables (e.g., cost per square foot)?

Accepted Answer

Parametric estimating

Answer

Analogous estimating

Answer

Bottom-up estimating

Answer

Expert judgment

Question 4

What is the purpose of a Funding Limit Reconciliation in PMBOK?

Accepted Answer

To align the project expenditure profile with organizational funding constraints

Answer

To compare actual spending against the cost baseline

Answer

To calculate the contingency reserve needed for risk events

Answer

To request additional budget when a cost overrun occurs

Question 5

In project cost management, what is a 'cost baseline' used for?

Accepted Answer

Serving as the time-phased budget against which actual cost performance is measured

Answer

Setting the maximum allowable project budget approved by the sponsor

Answer

Documenting all actual costs incurred during the project

Answer

Allocating funds to individual team members for procurement

Question 6

Which Estimate at Completion (EAC) formula is used when the current CPI is expected to continue for the remainder of the project?

Accepted Answer

EAC = BAC / CPI

Answer

EAC = AC + (BAC - EV)

Answer

EAC = AC + ETC

Answer

EAC = AC + (BAC - EV) / (CPI × SPI)