Which of the following is not an output of the Determine Budget process?

Which of the following is not an output of the Determine Budget process?

A. Cost baseline
B. Project funding requirements
C. Basis of estimates
D. Project documents updates

Answer: C

The project sponsor wants to know the status of the project, and the amount of variance from plan, if any. The project manager has determined that the PV of the project is $800,000, the EV is $750,000, and the AC is $775,000. The project manager should tell the project sponsor that the project ________.

The project sponsor wants to know the status of the project, and the amount of variance from plan, if any. The project manager has determined that the PV of the project is $800,000, the EV is $750,000, and the AC is $775,000. The project manager should tell the project sponsor that the project ________. 

A. $25,000 ahead of schedule and $50,000 under budget
B. $50,000 ahead of schedule and $25,000 under budget
C. $25,000 behind schedule and $50,000 over budget
D. $50,000 behind schedule and $25,000 over budget

Answer: D

You are building a house. You need to estimate the costs for the foundation. You have the following data: 30 cubic yards (CY) of soil to be removed; 2,600 pounds of steel rebar to be installed; and 20 CY of concrete to be placed. Soil removal costs $100/CY; steel rebar cost $1.50/pound installed, and concrete costs $400/CY placed. Which of the following is the best estimate of the cost of building the foundation for the house?

You are building a house. You need to estimate the costs for the foundation. You have the following data: 30 cubic yards (CY) of soil to be removed; 2,600 pounds of steel rebar to be installed; and 20 CY of concrete to be placed. Soil removal costs $100/CY; steel rebar cost $1.50/pound installed, and concrete costs $400/CY placed. Which of the following is the best estimate of the cost of building the foundation for the house? 

A. $8,800
B. $14,900
C. $9,600
D. $12,400

Answer: B

Your project has a PV of $48,000, EV of $32,000, and AC of $44,000. What is the CV as a percentage of the work accomplished?

Your project has a PV of $48,000, EV of $32,000, and AC of $44,000. What is the CV as a percentage of the work accomplished? 

A. -37.50 percent
B. 37.50 percent
C. -75 percent
D. 75 percent

Answer: A

The project manager wants to know how efficiently the project is using resources. He knows that the work currently accomplished is worth $32,000, the project should have completed work worth $48,000 by now, and the current spending stands at $44,000. Based on this information, the project manager determines that the project is ______.

The project manager wants to know how efficiently the project is using resources. He knows that the work currently accomplished is worth $32,000, the project should have completed work worth $48,000 by now, and the current spending stands at $44,000. Based on this information, the project manager determines that the project is ______. 

A. Performing over budget; for every $1 spent, the project is getting nearly 73 cents of value.
B. Performing under budget; for every $1 spent, the project is getting nearly $1.38 of value.
C. Performing exactly on budget; for every $1 spent, the project is getting $1 of value.
D. Performing over budget; for every $1 spent, the project is getting nearly 92 cents of value.

Answer: A

A construction project has an SPI of 1.05 and a CPI of 0.96. Based on this information, which of the following statements is most likely to be true?

A construction project has an SPI of 1.05 and a CPI of 0.96. Based on this information, which of the following statements is most likely to be true?

A. The project manager misjudged the local labor market and was not able to hire enough workers, and some machinery broke down requiring expensive repairs.
B. The project manager was able to find a new vendor who supplied materials for less than the original estimates, and process improvements helped shorten the schedule.
C. The project manager failed to manager stakeholders effectively, and community protests delayed the project, causing the project to consume fewer resources.
D. A subcontractor finished some tasks more quickly than estimated, and the project had to pay more for materials than originally estimated.

Answer: D

The project manager leading an IT project has determined that the planned value of a certain activity is $15,000. She has also determined that quality control for that activity will be 10 percent of that activity. Therefore, the project manager determines that the planned value of quality control for that activity is $1,500. Which of the following approaches for determining earned value has the project manager used?

The project manager leading an IT project has determined that the planned value of a certain activity is $15,000. She has also determined that quality control for that activity will be 10 percent of that activity. Therefore, the project manager determines that the planned value of quality control for that activity is $1,500. Which of the following approaches for determining earned value has the project manager used? 

A. Fixed formula, 0/100 rule
B. Percent complete
C. Apportioned value
D. 10/90 rule

Answer: C

A construction project is scheduled to take six months and cost $1.2 million to complete. After three months, the project has spent $575,000, and 55 percent of the project work has been completed. Assuming that the team's efficiency remains the same for the remainder of the project, what is the expected cost to finish all remaining project work?

A construction project is scheduled to take six months and cost $1.2 million to complete. After three months, the project has spent $575,000, and 55 percent of the project work has been completed. Assuming that the team's efficiency remains the same for the remainder of the project, what is the expected cost to finish all remaining project work?

A. -$25,000
B. $703,125
C. $1,043,478
D. $468,478

Answer: D

The project manager is creating the cost management plan for the project. Which of the following tools and techniques would she not use to create the plan?

The project manager is creating the cost management plan for the project. Which of the following tools and techniques would she not use to create the plan? 

A. Bottom-up estimating
B. Expert judgment
C. Meetings
D. Analytical techniques

Answer: A

The project manager leading a factory renovation project internal to the organization has been asked to take life-cycle costs into account when making decisions that will affect the project. Which of the following statements should give the project manager the most cause for concern?

The project manager leading a factory renovation project internal to the organization has been asked to take life-cycle costs into account when making decisions that will affect the project. Which of the following statements should give the project manager the most cause for concern? 

A. The project team has consumed most of the project budget performing the work of the project.
B. The project team has made keeping short-term project costs low its highest priority.
C. The cost of operating and maintaining the factory exceeds the budget for the project.
D. The project team will be disbanded before maintenance on the factory will be required.

Answer: B

Which of the following are two methods of accelerated depreciation?

Which of the following are two methods of accelerated depreciation? 

A. First cost and life-cycle cost
B. Direct and fixed
C. Sum of the year's digits and double declining balance
D. Linear and nonlinear

Answer: C

Which of the following statements concerning the cost baseline is not true?

Which of the following statements concerning the cost baseline is not true?

A. It is normally shown as an S-curve.
B. It is an output of the Determine Budget process.
C. It includes management reservces.
D. It relates period expenditures and cumulative expenditures to time.

Answer: C

An organization has purchased a large crane for a construction project expected to take 10 years to complete. The crane cost $250,000 to purchase and install. At the end of its life (10 years), it will have a scrap value of $50,000. Using straight-line depreciation, how much would you depreciate the crane, each year, if the expected long-term interest rate was 5 percent and the company used an IRR of 15 percent?

An organization has purchased a large crane for a construction project expected to take 10 years to complete. The crane cost $250,000 to purchase and install. At the end of its life (10 years), it will have a scrap value of $50,000. Using straight-line depreciation, how much would you depreciate the crane, each year, if the expected long-term interest rate was 5 percent and the company used an IRR of 15 percent?

A. $25,000
B. $200,000
C. $27,500
D. $20,000

Answer: D

The project sponsor asks the project manager to determine the cost performance needed with the remaining project resources in order to meet the project goal. The project is scheduled to take two years to complete and cost $1 million. Eight months into the project, $300,000 has been spent and 35 percent of the work has been completed. The project manager believes that the $1 million figure will remain viable for the remainder of the project. Which of the following answers would best help the project manager answer the sponsor's question?

The project sponsor asks the project manager to determine the cost performance needed with the remaining project resources in order to meet the project goal. The project is scheduled to take two years to complete and cost $1 million. Eight months into the project, $300,000 has been spent and 35 percent of the work has been completed. The project manager believes that the $1 million figure will remain viable for the remainder of the project. Which of the following answers would best help the project manager answer the sponsor's question?

A. TCPI=0.93
B. CPI=1.17
C. TCPI= 1.08
D. CPI=0.86

Answer: A

A project has an initial budget of $5 million and is 50 percent complete. It is also 50 percent over budget. The money that has been spent on the project is known as a(n) _________.

A project has an initial budget of $5 million and is 50 percent complete. It is also 50 percent over budget. The money that has been spent on the project is known as a(n) _________. 

A. Fixed cost
B. Sunk cost
C. Indirect cost
D. Direct cost

Answer: B

Which of the following statements concerning management reserves is true?

Which of the following statements concerning management reserves is true? 

A. They are typically controlled by the project manager.
B. They are not part of the cost baseline.
C. They are always included in an EV calculation.
D. They are set aside for known unknowns.

Answer: B

The project manager and project team are beginning to estimate the costs of the project. Which of the following documents should they consult to learn about funding constraints?

The project manager and project team are beginning to estimate the costs of the project. Which of the following documents should they consult to learn about funding constraints?

A. Scope statement
B. WBS
C. Cost baseline
D. Life cycle cost

Answer: A

Senior management wants to know whether the project is currently over or under budget and by how much. The project manager has determined that the PV of the project is $875,000, the EV is $850,000, and the AC is $900,000. The project manager should tell senior management that the project is ___________.

Senior management wants to know whether the project is currently over or under budget and by how much. The project manager has determined that the PV of the project is $875,000, the EV is $850,000, and the AC is $900,000. The project manager should tell senior management that the project is ___________.

A. $25,000 over budget
B. $25,000 under budget
C. $50,000 under budget
D. $50,000 over budget

Answer: D

Which of the following is not an input to the Determine Budget process?

Which of the following is not an input to the Determine Budget process? 

A. Project charter
B. Project schedule
C. Resource calendars
D. Contracts

Answer: A

You are a foundation contractor. Over many projects of a certain size, you have developed a cost factor a $400 per linear foot of foundation. Which estimating technique are you using?

You are a foundation contractor. Over many projects of a certain size, you have developed a cost factor a $400 per linear foot of foundation. Which estimating technique are you using? 

A. Detailed
B. Bottom-up
C. Parametric
D. Sum of the squares

Answer: C