Project Cost Management

Which of the following is a valid way of evaluating the financial feasibility of a project?

• Return on Investment

• Net Present Value

• Internal Rate of Return

• All of the above

The calculation of the total cost of a product, from R & D to operational support and disposal, is called

• Birth-to-death costing

• Life-cycle costing

• Summary costing

• Depreciation costing

If BCWS = 1000, BCWP = 1200, and ACWP = 1300, the project is

• Ahead of Schedule and under budget

• Behind Schedule and under budget

• Ahead of Schedule and over budget

• Behind Schedule and over budget

If BAC = Rs.20,000/- and the project is 40% complete, then the earned value is

• Rs. 8,000/-

• Rs. 5,000/-

• Rs. 20,000/-

• Cannot be determined

If BAC = Rs.12,000/- and CPI = 1.2, then the variance at completion is

• Rs. -2,000/-

• Rs. 2,000/-

• Rs. 3,000/-

• Rs. -3,000/-

If a project manager is looking for revenue for a value-added scope change, the project manager's first choice would be

• Management reserve

• Customer funded scope change

• Undistributed budget

• Retained profits

EAC, ETC, SPI and CPI most often appear in which type of report?

• Performance

• Status

• Forecast

• Exception

If CPI = 1,1 and SPI = 0.95, then the trend for the project is

• Running over budget but ahead of schedule

• Running over budget but behind schedule

• Running under budget and ahead of schedule

• Running under budget but behind schedule

The document that describes a work package, identifies the cost centers allowed to charge against this work package, and establishes the charge number for this work package is the

• Code of accounts

• Work Breakdown Structure

• Work Authorization Form

• None of the above

The cost of financial baseline of a project is composed of

• Distributed budget only

• Distributed and undistributed budget only

• Distributed budget, undistributed budget, and the management reserve only

• Distributed budget, undistributed budget, management reserve, and profit only