Project Practice Test: Video 1 Answers (24 Questions)

Question 1

A project's EAC using the formula EAC = AC + (BAC - EV) / CPI assumes:

Accepted Answer

Future work will continue at the current CPI

Answer

EAC = AC + (BAC - EV) / CPI assumes the current cost efficiency (CPI) will persist for all remaining work.

Question 2

What does revenue less expense mean?

Accepted Answer

Profit

Answer

Profit is a fundamental financial concept calculated as the total revenue earned minus the total expenses incurred over a specific period. It represents the financial gain or loss of a business or project. This metric is crucial for assessing financial performance and viability.

Question 3

A project manager applies earned value analysis and finds Cost Variance (CV) = +$15,000. This means:

Accepted Answer

The project is $15,000 under budget

Answer

CV = EV - AC; a positive CV means earned value exceeds actual cost, so the project is under budget.

Question 4

Life cycle costing considers:

Accepted Answer

Total cost of ownership including operation and maintenance

Answer

Life cycle costing evaluates the total cost of ownership over the product's entire life, including acquisition, operations, and disposal.

Question 5

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

Accepted Answer

Tangible Costs

Answer

Tangible costs (or benefits) are those expenses or advantages that can be easily quantified and measured in monetary terms. These are direct, measurable financial values that have a clear impact on the project's budget or financial outcome. They are straightforward to include in cost estimates and financial analyses, providing concrete data for decision-making.

Project Management Practice Test

Project Management Practice Test

Project Practice Test: Video 1 Answers (24 Questions)