Project Cost Management

Which type of project cost estimate is the most accurate?

• Preliminary
• Order of magnitude
• Conceptual
• Definitive

To assist in budget control, it is suggested that an estimate be created at the ______ level of the WBS.

• Highest
• Major work effort
• Lowest
• Third

The Project Cost Management Process comprises the following activities:
a. Determine Budget
b. Plan Cost Management
c. Estimate Costs
d. Control Costs
What is the correct sequence?

• a-b-c-d
• c-a-b-d
• b-c-a-d
• a-c-b-d

The tools and techniques used in the process of Determine Budget includes all but

• Cost of Quality
• Cost Aggregation
• Expert Judgement
• Historical Relationships

The Cost Performance Baseline is a time-phased budget and is used as a basis to measure, monitor, and control overall cost performance of the project. It is usually displayed in the form of:

• Pie-chart
• An S-curve
• A Z curve
• An inverted S-curve

Funding requirements for a project are usually in incremental amounts that are not continuous, and these appear as a step function in the graph depicting Cash flow, Cost baseline and Funding. Any gap at the end of the project, between the funds allocated and the cost baseline represents:

• Charting error
• Management reserves
• Contingency reserves
• Cost variance

An estimating technique that uses a statistical relationship between historical data and other variables (for example, square footage in construction, lines of code in software development) is known as:

• Analogous estimating
• Bottom-up estimating
• Historical analysis
• Parametric estimating

A project is estimated to cost $ 50,000 with a timeline of 50 days. After 25 days, the project manager finds that 50% of the project is complete and Actual costs are $ 50,000. What is the Cost Performance Index (CPI) ?

• The CPI is 1
• The CPI is 1.5
• The CPI is 0.5
• The CPI is 2

To protect your project from cost overruns, which of the following can you do in the planning phase of the project?

• Pad high risk activities with extra cost buffer
• Provide extra time for each activity in the schedule
• Monitor each activity closely
• Apply Earned Value Forecasting Formula, such EAC and ETC

Your earned value management analysis indicates that your project is falling behind its baseline schedule. You know this because the cumulative EV is much:

• Lower than the cumulative PV.
• Higher than the cumulative AC.
• Higher than the cumulative PV.
• Lower than the cumulative CPI.