COST and SCHEDULE

One common way to compute estimate at completion (EAC) is to take the budget at completion (BAC) and:

• Divide by SPI.
• Multiply by SPI.
• Multiply by CPI.
• Divide by CPI.

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

• The cost of work completed.
• The value of work performed.
• The anticipated total cost at project completion.
• What it will cost to finish the project.

During the conceptual phase of a pipeline project, the project engineer estimates the following: the cost of the materials is most likely $100,000; optimistically $90,000; and pessimistically $120,000. The cost for labor is most likely $80,000; optimistically $70,000 and pessimistically $100,000. The cost for equipment is most likely $60,000; optimistically $50,000 and pessimistically $70,000. The cost for construction management fees is most likely $30,000; optimistically $20,000 and pessimistically $40,000. What is the probability of the project coming in under $270,000?

• Less than 50%

• Exactly 50%

• Over 50%

• Zero

A manufacturing project has a schedule performance index (SPI) of 0.89 and a cost performance index (CPI) of 0.91. Generally, what is the BEST explanation for why this occurred?

• The scope was changed
• Additional equipment needed to be purchased
• A supplier went out of business and new one needed to be found
• A critical path activity took longer and needed more labor hours to complete

A project manager is working with management to create the project estimate. During the initiating process group, what level of accuracy should the estimate have?

• -10% to +10%
• -25% to +75%
• -35% to +75%
• -10% to +25%

You are a project manager for a small construction project. Your project was budgeted for $72,000 over a six-week period. As of today, you’ve spent $22,000 of your budget to complete work that you originally expected would cost $24,000. According to your schedule, you should have spent $30,000 by this point. Based on these circumstances, your project could be BEST describe as:

• Under budget
• Over budget
• On Budget
• Not having enough information provided

You are about to take over a project from another project manager and find out the following information about the project: activity Z has an early start of day 15 and late start of day 20. Activity Z is difficult activity. Cost performance index is 1.1; schedule performance index is 0.8. There are 11 stakeholders on the project. Based on the information, which of the following would you be the MOST concerned about?

• Schedule
• Float
• Cost
• The number of available resources

You are a project manager working on a project that requires 100 items to be tested, spaced evenly over five weeks. You have just begun week three, with an overall budget of $10,000. To date, you have spent $2,000 with 40 items tested successfully. What does the cost variance (CV) tell you in this circumstance?

• The project is proceeding at 100 % of the expected rate
• The project is $2,000 under budget
• The project is on budget
• The project is getting $2 of work for every dollar spent

A schedule performance index of 0,76 means:

• You are ahead of schedule
• You are over budget
• You are progressing at 76% of the rate originally planned
• You are progressing at 24% of the rate originally planned

A parking lot fencing project was bid at $11 per foot and one company is doing all the work. The parking lot has four equal sides of 125 feet and requires the installation of a six-foot diameter culvert on one side. Fencing should be installed at a rate of 100 feet per day. The culvert installation will cost $500 and take one day to complete. The culvert must be installed before work can begin on that side of the fence. After three days of work, one side is complete, another has 75 feet installed and the culvert is completely installed. So far $2,700 of the total project budget has been used. What is the current status of the project?

• The budget is neutral with a cost variance of $0
• It is over budget with a cost variance of -$1,100
• It is under budget with a cost variance of +$500 due to the completion of the culvert installation
• It is over budget with cost variance of +$125