Project Management Project Cost Management 5

Question 1

Which of the following is a tool and technique used in the Control Costs process?

Accepted Answer

Earned value analysis

Answer

Earned value analysis is a primary tool used in Control Costs to measure project performance and progress against the baseline.

Question 2

A project team is using value engineering during planning. The primary goal of value engineering is to:

Accepted Answer

Find a less costly way to accomplish the same scope

Answer

Value engineering seeks to optimize costs by finding alternative approaches that deliver equivalent or better results at lower cost.

Question 3

If a project's TCPI (based on BAC) is 1.25, what does this indicate?

Accepted Answer

The project must perform 25% more efficiently than originally planned to finish on budget

Answer

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.

Question 4

Which of the following best describes 'cost of quality' in project management?

Accepted Answer

All costs incurred to prevent defects plus the cost of failures

Answer

Cost of quality includes conformance costs (prevention and appraisal) plus non-conformance costs (internal and external failure costs).

Question 5

During project execution, the sponsor asks the project manager what the total project will cost if current efficiency continues. Which metric answers this question?

Accepted Answer

Estimate at Completion (EAC)

Answer

EAC (Estimate at Completion) is the expected total project cost when completed, factoring in current performance trends.

Project Management Practice Test

Project Management Practice Test

Project Management Project Cost Management 5