Archive for December 2017

You have just completed the initiating processes of a small project and are moving into project planning when a project stakeholder asks you for the project's budget and cost baseline. What should you tell her?

You have just completed the initiating processes of a small project and are moving into project planning when a project stakeholder asks you for the project's budget and cost baseline. What should you tell her? 



A. The project budget can be found in the project charter, which has just been completed.
B. The project budget and baseline will not be finalized and accepted until the planning processes are completed.
C. The project management plan will not contain the project's budget and baseline; this is a small project.
D. It is impossible to complete an estimate before the project management plan is created.





Answer: B

Early in the life of your project, you are having a discussion with the sponsor about what estimating techniques should be used. You want a form of expert judgment, but the sponsor argues for analogous estimating. It would be BEST to:

Early in the life of your project, you are having a discussion with the sponsor about what estimating techniques should be used. You want a form of expert judgment, but the sponsor argues for analogous estimating. It would be BEST to:




A. Agree to analogous estimating, as it is a form of expert judgment.
B. Suggest life cycle costing as a compromise.
C. Determine why the sponsor wants such an accurate estimate.
D. Try to convince the sponsor to allow expert judgment because it is typically more accurate.




Answer: A

The cost contingency reserve should be:

The cost contingency reserve should be: 



A. Hidden to prevent management from disallowing the reserve.
B. Added to each activity to provide the customer with a shorter critical path.
C. Maintained by management to cover cost overruns.
D. Added to the costs of the project to account for risks.




Answer: D

Your project has a medium amount of risk and is not very well defined. The sponsor hands you a project charter and asks you to confirm that the project can be completed within the project cost budget. What is the BEST method to handle this?

Your project has a medium amount of risk and is not very well defined. The sponsor hands you a project charter and asks you to confirm that the project can be completed within the project cost budget. What is the BEST method to handle this? 



A. Build an estimate in the form of a range of possible results.
B. Ask the team members to help estimate the cost based on the project charter.
C. Based on the information you have, calculate a parametric estimate.
D. Provide an analogous estimate based on past history.



Answer: A

Which of the following are ALL items included in the cost management plan?

Which of the following are ALL items included in the cost management plan? 




A. The level of accuracy needed for estimates, rules for measuring cost performance, specifications for how duration estimates should be stated.
B. Specifications for how estimates should be stated, rules for measuring cost performance, the level of accuracy needed for estimates.
C. Rules for measuring team performance, the level of accuracy needed for estimates, specifications for how estimates should be stated.
D. Specifications for how estimates should be stated, the level of risk needed for estimates, rules for measuring cost performance.



Answer: B

Value analysis is performed to get:

Value analysis is performed to get:




A. More value from the cost analysis.
B. Management to buy into the project.
C. The team to buy into the project.
D. A less costly way of doing the same work.



Answer: D

Project setup costs are an example of:

Project setup costs are an example of:



A. Variable costs.
B. Fixed costs.
C. Overhead costs.
D. Opportunity costs.




Answer: B

A schedule performance index (SPI) of 0.76 means:

A schedule performance index (SPI) of 0.76 means:



A. You are over budget.
B. You are ahead of schedule.
C. You are progressing at 76 percent of the rate originally planned.
D. You are progressing at 24 percent of the rate originally planned.



Answer: C

A cost performance index (CPI) of 0.89 means:

A cost performance index (CPI) of 0.89 means:



A. At this time, we expect the total project to cost 89 percent more than planned.
B. When the project is completed, we will have spent 89 percent more than planned.
C. The project is progressing at 89 percent of the rate planned.
D. The project is getting 89 cents out of every dollar invested.




Answer: D

Cost performance measurement is BEST done through which of the following?

Cost performance measurement is BEST done through which of the following?



A. Asking for a percent complete from each team member and reporting that in the monthly progress report.
B. Calculating earned value and using the indexes and other calculations to report past performance and forecast future performance.
C. Using the 50/50 rule and making sure the life cycle cost is less than the project cost.
D. Focusing on the amount expended last month and what will be expended the following month.



Answer: B

The main focus of life cycle costing is to:

The main focus of life cycle costing is to:




A. Estimate installation costs.
B. Estimate the cost of operations and maintenance.
C. Consider installation costs when planning the project costs.
D. Consider operations and maintenance costs in making project decisions.




Answer: D

All of the following are outputs of the Estimate Costs process EXCEPT:

All of the following are outputs of the Estimate Costs process EXCEPT:


A. An understanding of the cost risk in the work that has been estimated.
B. The prevention of inappropriate changes from being included in the cost baseline.
C. An indication of the range of possible costs for the project.
D. Documentation of any assumptions made during the Estimate Costs process.




Answer: B

Analogous estimating:

Analogous estimating:



A. Uses bottom-up estimating techniques.
B. Is used most frequently during project executing.
C. Uses top-down estimating techniques.
D. Calculates estimates using actual detailed historical costs.




Answer: C

The customer responsible for overseeing your project asks you to provide a written cost estimate that is 30 percent higher than your estimate of the project's cost. He explains that the budgeting process requires managers to estimate pessimistically to ensure enough money is allocated for projects. What is the BEST way to handle this?

The customer responsible for overseeing your project asks you to provide a written cost estimate that is 30 percent higher than your estimate of the project's cost. He explains that the budgeting process requires managers to estimate pessimistically to ensure enough money is allocated for projects. What is the BEST way to handle this? 



A. Add to 30 percent as a lump sum contingency fund to handle project risks.
B. Add the 30 percent to your cost estimate by spreading it evenly across all project activities.
C. Create one cost baseline for budget allocations and a second one for the actual project.
D. Ask for information on risks that would cause your estimate to be too low.




Answer: D

Estimate at completion (EAC) is a periodic evaluation of:

Estimate at completion (EAC) is a periodic evaluation of: 




A. The cost of work completed.
B. The value of work performed.
C. The anticipated total cost at project completion.
D. What is will cost to finish the project.




Answer: C
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