Project Management Project Scheduling and Costing — Questions and Answers

Question 1: A project manager calculates the Schedule Performance Index (SPI) as 0.85. What does this indicate?

The project is 15% under budget
The project is behind schedule (Correct answer)
The project is ahead of schedule
The project has a 15% cost overrun

Correct answer: The project is behind schedule

An SPI less than 1.0 means the project is behind schedule, as less work was accomplished than planned.

Question 2: Which scheduling technique accounts for uncertainty by using optimistic, pessimistic, and most likely duration estimates?

Critical Path Method (CPM)
Program Evaluation and Review Technique (PERT) (Correct answer)
Gantt chart
Resource leveling

Correct answer: Program Evaluation and Review Technique (PERT)

PERT uses three-point estimates (optimistic, pessimistic, most likely) to calculate expected durations and account for uncertainty.

Question 3: What is the purpose of a baseline in project cost management?

To set the minimum acceptable quality level
To define the approved version of the project budget used for comparison (Correct answer)
To identify the lowest-cost vendors
To establish the team's minimum performance standards

Correct answer: To define the approved version of the project budget used for comparison

The cost baseline is the approved time-phased budget against which actual project costs are compared and monitored.

Question 4: Fast-tracking a project schedule means:

Reducing project scope to meet the deadline
Adding more resources to critical path activities
Performing critical path activities in parallel that were originally planned sequentially (Correct answer)
Using automated tools to speed up scheduling calculations

Correct answer: Performing critical path activities in parallel that were originally planned sequentially

Fast-tracking overlaps activities that would normally be done sequentially, which compresses the schedule but may increase risk.

Question 5: A project has a Budget at Completion (BAC) of $200,000, Earned Value (EV) of $80,000, and Actual Cost (AC) of $100,000. What is the Cost Variance (CV)?

-$20,000 (Correct answer)
$20,000
-$120,000
$120,000

Correct answer: -$20,000

CV = EV – AC = $80,000 – $100,000 = –$20,000, indicating the project is over budget.

Question 6: Which type of dependency exists when one activity cannot start until another activity has started?

Finish-to-Start (FS)
Start-to-Start (SS) (Correct answer)
Finish-to-Finish (FF)
Start-to-Finish (SF)

Correct answer: Start-to-Start (SS)

A Start-to-Start dependency means the successor activity cannot begin until the predecessor activity has begun.

Question 7: What does the term 'float' (or slack) represent in project scheduling?

The total project budget reserve
The amount of time an activity can be delayed without delaying the project finish (Correct answer)
The buffer added to estimates to account for uncertainty
The difference between planned and actual costs

Correct answer: The amount of time an activity can be delayed without delaying the project finish

Float is the amount of time a schedule activity can be delayed without impacting the project's critical path or end date.

Question 8: A project manager is compressing the schedule by adding more team members to critical path tasks. This technique is called:

Fast-tracking
Crashing (Correct answer)
Resource smoothing
Schedule rebaselining

Correct answer: Crashing

Crashing involves adding resources to critical path activities to shorten duration, typically at increased cost.

Question 9: What is the Estimate at Completion (EAC) formula when future work is expected to be performed at the budgeted rate?

EAC = BAC / CPI
EAC = AC + (BAC – EV) (Correct answer)
EAC = AC + ETC
EAC = BAC × SPI

Correct answer: EAC = AC + (BAC – EV)

When future work will proceed at the planned rate, EAC = AC + (BAC – EV), which adds actual costs to the remaining budget.

Question 10: Which scheduling output shows the planned start and finish dates for each project activity in a bar chart format?

Network diagram
Gantt chart (Correct answer)
Resource histogram
Milestone list

Correct answer: Gantt chart

A Gantt chart is a bar chart displaying activities against a time scale with planned start and finish dates visually represented.

Question 11: A mandatory dependency between activities is also known as a:

Discretionary dependency
Hard logic (Correct answer)
Soft logic
External dependency

Correct answer: Hard logic

Hard logic (mandatory dependency) is inherent in the nature of the work and cannot be changed, such as testing software before deployment.

Question 12: When using three-point estimation for PERT, what is the expected duration if optimistic = 4 days, most likely = 7 days, and pessimistic = 16 days?

7 days
8 days (Correct answer)
9 days
10 days

Correct answer: 8 days

PERT expected duration = (O + 4M + P) / 6 = (4 + 28 + 16) / 6 = 48 / 6 = 8 days.

Question 13: What is the primary purpose of a Work Breakdown Structure (WBS) in cost estimation?

To assign team members to tasks
To decompose the project into manageable components for cost estimating (Correct answer)
To track actual costs against the budget
To define the project schedule network

Correct answer: To decompose the project into manageable components for cost estimating

The WBS decomposes the project scope into work packages, which become the basis for cost estimating and budgeting.

Question 14: Which cost estimation technique uses the actual cost of a similar past project as the basis for estimating?

Bottom-up estimating
Analogous estimating (Correct answer)
Parametric estimating
Three-point estimating

Correct answer: Analogous estimating

Analogous estimating uses historical data from similar past projects as the basis for estimates and is less accurate but faster.

Question 15: A project's To-Complete Performance Index (TCPI) is 1.15. What does this mean?

The project needs to spend $1.15 for every $1 of remaining work
The project must perform at $1.15 worth of work for every $1 remaining in the budget (Correct answer)
The project is 15% ahead of schedule
The project has 15% of its budget remaining

Correct answer: The project must perform at $1.15 worth of work for every $1 remaining in the budget

TCPI > 1.0 indicates the project must improve efficiency to complete within budget, spending remaining budget more productively than planned.

Question 16: What is a milestone in project scheduling?

A task with the longest duration on the critical path
A significant point or event in the project with zero duration (Correct answer)
A summary task that groups related activities
A buffer added between critical tasks

Correct answer: A significant point or event in the project with zero duration

A milestone marks a significant project event or decision point and has no duration — it is a moment in time, not a task.

Question 17: Resource leveling is used to:

Reduce project costs by cutting team size
Adjust the schedule to resolve resource over-allocation, often extending the project duration (Correct answer)
Standardize resource rates across the project
Balance the project budget across fiscal quarters

Correct answer: Adjust the schedule to resolve resource over-allocation, often extending the project duration

Resource leveling adjusts activity dates to address resource constraints or over-allocation, often resulting in a longer schedule.

Question 18: Which document formally authorizes expenditure of project funds and serves as the approved budget for cost control?

Project charter
Cost management plan
Cost performance baseline (Correct answer)
Budget at Completion

Correct answer: Cost performance baseline

The cost performance baseline is the approved, time-phased budget used to measure and monitor project cost performance.

Question 19: In schedule network analysis, what is the 'near-critical path'?

The second-longest path through the network with very little float (Correct answer)
The path with the most activities
The path identified by the critical chain method
Any path involving external dependencies

Correct answer: The second-longest path through the network with very little float

The near-critical path has very little total float and can become critical if any of its activities are delayed, making it important to monitor.

Question 20: What does 'parametric estimating' involve?

Estimating based on the most recent similar project
Using statistical relationships between historical data and project parameters to calculate estimates (Correct answer)
Summing detailed estimates from the bottom of the WBS
Asking expert team members for their best guesses

Correct answer: Using statistical relationships between historical data and project parameters to calculate estimates

Parametric estimating uses statistical or mathematical models (e.g., cost per square foot, hours per line of code) to calculate estimates.

Question 21: A Finish-to-Finish (FF) dependency with a lag of 2 days means:

The successor must start 2 days after the predecessor finishes
The successor cannot finish until 2 days after the predecessor finishes (Correct answer)
The successor must start 2 days before the predecessor finishes
The successor must finish 2 days before the predecessor finishes

Correct answer: The successor cannot finish until 2 days after the predecessor finishes

FF with a 2-day lag means the successor activity must wait until 2 days after the predecessor finishes before it can complete.

Project Management Project Scheduling and Costing

A project manager calculates the Schedule Performance Index (SPI) as 0.85.
What does this indicate?

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