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 Control Account is a management control point in the WBS where scope, schedule, and budget are integrated to measure performance using Earned Value.

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 = BAC - EAC; a negative value means the Estimate at Completion exceeds the Budget at Completion, projecting a cost overrun.

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

Parametric estimating applies statistical relationships between historical data and project parameters (e.g., cost per unit, cost per hour) to calculate cost estimates.

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

Funding Limit Reconciliation ensures that the project's cash expenditure schedule aligns with any funding constraints set by the sponsoring organization.

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

The cost baseline is the approved, time-phased version of the project budget used as a reference to monitor and measure cost performance throughout the project.

PMBOK - Project Management Body of Knowledge Practice Test

PMBOK - Project Management Body of Knowledge Practice Test

PMBOK PMBOK Project Cost Management Questions and Answers 3