Lesson 6

Question 1

There are 4 cost management processes. Which are they ?

Answer 1

Plan cost management

Estimate Costs

Determine budget

Control Costs

Question 2

What costs will you need to consider on your project ??

Answer 2

Resource & Materials Cost
Equipment Cost

Question 3

Direct cost vs Indirect costs

Answer 3

Direct: cost are those that are specific to a single project

Indirect: cost are shared across multiple projects. Ex: administrative costs, such as percentage of the department’s administrative assistant

Question 4

Part of ______involve establishing the guidelines and procedures for how cost will be estimated and tracked

Answer 4

Cost planning

Question 5

Which are example of cost factors that can influence your estimate ??

Answer 5

Market conditions
Schedule pressures
Lead times

Question 6

What is time-scaled budget ??

Answer 6

When funds will be needed for which work effort.

Question 7

Cumulative Cost

Answer 7

Are all cost up that point in time.

Question 8

Performance measurement baseline

Answer 8

Project scope, cost and schedule baseline are integrated into a single baseline. The end point is called budget at completion (BAC)

Question 9

Statusing

Answer 9

Taking a snapshot of project performance at a specific point in time.

Question 10

Planned value (PV)

Answer 10

Represents all work that was scheduled to be done, so any work to the right of the status date doesn’t have a planned value bc it wasn’t scheduled yet.

Question 11

Earned Value (EV)

Answer 11

Measure of all work that was completed as of the status date.

When EV is LESS that PV means project in behind schedule

When EV is GREATER than PV the project is ahead of schedule

Question 12

Schedule variance (SV) formula.

Answer 12

SV=Earned Value-Planned Value

Question 13

Schedule performance index (SPI)
Measures of productivity

Answer 13

SPI=EV/PV

SPI>1 better than planned performance
SPI<1 actual performance is worse’s than planned

Question 14

Measuring Cost Performance

Cost Variance (CV) formula

Answer 14

CV=EV-AC

CV: compares the work completed to the amount of money used. It will show whether the project is over or under budget

CV=0 we are on budget

Question 15

Measuring Cost Performance

Cost performance index (CPI) formula

Answer 15

CPI=EV/AC

Question 16

Forecasting Completion

Answer 16

If a project isn’t experiencing any variance, it’ll finish as planned.
If there’s cost or schedule variance, we need to determine the new target.

Question 17

2 forecasting term

Answer 17

Estimate at completion (EAC):

Estimate to complete (ETC)

Question 18

EAC calculation optimistic

Answer 18

EAC=AC+(BAC-EV)

Question 19

EAC calculation conservative

Answer 19

EAC=BAC/CIP

Question 20

https://quizlet.com/ca/557760176/project-cost-management-questions-flash-cards/

https://quizlet.com/728691211/8-project-cost-management-practice-questions-flash-cards/

https://www.scribd.com/document/474458734/Practice-questions-Project-Cost-Management

Question 21

The cost baseline is an output of which cost management process??

-Plan Cost Management
-Determine Budget
-Control Cost
-Estimate cost

Answer 21

Determine budget

Question 22

What is the purpose of project reserve ?
A-it is the difference bt what the project cost and what we bill the customers
B-it compensates for poor estimating competencies
C-it covers the indirect project cost
D-it is mechanism to deal with known risks that may occur.

Answer 22

D

Question 23

Which formula is used to forecast completion when you assume that what’s happened in the past will continue to occur on any remaining work
-BAC/CPI
-AC+(BAC-EV)
-EV-AC
-(BAC-EV)/(EAC-AC)

Answer 23

BAC/CPI

Question 24

The _____describes how the project cost will be planned, structure and controlled.
-cost baseline
-control account
-budget
-cost management plan

Answer 24

Cost management plan

Question 25

Which of the following is an example of direct project cost ?? Overhead Resource hours PMO support Taxes

Answer 25

Resource hours

Question 26

What is the schedule variance formula? A-EV divided by PV B-EV minus PV C-EV minus AC D-BAC divided by CPI

Answer 26

B

Question 27

What is the cost performance index CPI formula? A- EV divided by AC B-EV minus PV C-EV divided by PV D-BAC minus EV

Answer 27

A

Question 28

Given the following project status information EV=$6800, PV=$7150 and AC=$6950 what is the cost variance for your project ?

Answer 28

$-150

Question 29

If you calculated a cost variance of -200 is your project on target, over budget or under budget?

Answer 29

Over budget

Question 30

Given the following project status information EV=$6800,PV=$7150 and AC=$6950 what is the current schedule performance index for this project ?

Answer 30

95%