Project Cost Management Flashcards
7 cards from real Project Management practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Project Cost Management flashcards as text
Which of the following is a tool and technique used in the Control Costs process?
Answer: Earned value analysis
Earned value analysis is a primary tool used in Control Costs to measure project performance and progress against the baseline.
A project team is using value engineering during planning. The primary goal of value engineering is to:
Answer: Find a less costly way to accomplish the same scope
Value engineering seeks to optimize costs by finding alternative approaches that deliver equivalent or better results at lower cost.
If a project's TCPI (based on BAC) is 1.25, what does this indicate?
Answer: The project must perform 25% more efficiently than originally planned to finish on budget
TCPI of 1.25 means remaining work must be done at 1.25 times the planned efficiency to stay within the original BAC — very challenging.
Which of the following best describes 'cost of quality' in project management?
Answer: All costs incurred to prevent defects plus the cost of failures
Cost of quality includes conformance costs (prevention and appraisal) plus non-conformance costs (internal and external failure costs).
During project execution, the sponsor asks the project manager what the total project will cost if current efficiency continues. Which metric answers this question?
Answer: Estimate at Completion (EAC)
EAC (Estimate at Completion) is the expected total project cost when completed, factoring in current performance trends.
A project manager discovers that resource costs were not properly allocated to the WBS during planning, causing cost overruns. Which planning output was likely inadequate?
Answer: Activity cost estimates
Activity cost estimates map resource costs to specific activities; inadequate estimates result in a flawed cost baseline and eventual overruns.
Variance at Completion (VAC) is calculated as:
Answer: BAC - EAC
VAC = BAC - EAC; a negative VAC indicates the project is projected to finish over budget.