Chapter 07 Cost Management

Which of the following deprecistion methods depreciates the same amount (or percent) each year by dividing the assets cost by the number of years it is expected to be in service?

• Straight line
• Declining Balance
• Sum-of-Years Digits
• Units of Time

Diana is the project manager for a complex project. Diana suspects that some of her project team members are filling false claims and having false invoices reimbursed. The invoice charges are being charged to the project budget. During which of the following processes can Diana confirm her suspicious regarding her project teams actions?

• Validate Scope
• Control Scope
• Control Costs
• Control Schedule

Which of the following is not part of Project Cost Management?

• Estimating
• Budgeting
• Controlling
• Sequencing

Which of the following statements regarding the Budget at Completion (BAC) and the Estimate at Completin (EAC) is correct for any project?

• The BAC is always greater than the EAC
• The EAC is always greater than the BAC
• he BAC is always equal to the EAC
• The BAC is not dependent on the EAC

What is the total approved plan for the project work to which the project execution is compared known as?

• Earned Value (EV)
• Cost Variance
• Management Reserves
• Performance Measurement Baseline

According to the approved plan, Flora should have completed the site inspection, site excavation, lay foundation, and assemble tower tasks. What is the projects current Cost Variance (CV)[Gambar Chapter 7 No 6]

• -1200
• 1200
• -7500
• 7500

Crystal is making a presentation on her projects during a board meeting. Although Crystal knows that the project is behind schedule and will be at least a month late, she announces that by the end of her project, her projects total schedule variance will be zero. As the board members do not understand Earned Value Management (EVM) Crystal explains that the schedule variance is calculated by subtracting the projects total planned values from the projects total earned value. What can be concluded from this information?

• Crystal is an ethical project manager
• Crystal is stating the facts
• Crystal is lying
• Crystal is trying to deceive the board members

In Kims current project, some of the activity costs deviated from the baseline by $150. This seems to be low but she wants to verify the project documents to see if the deviation is within the threshold. Where should she look for control threshold information?

• Cost Management Plan
• Performance Measurment Baseline
• Coast Performance Baseline
• Organizational Process Assets

Which of the following components of the Project Management Plan is/are specifically considered during the Contol Costs process?

• Cost Performance Baseline
• Cost Management Plan
• oth Cost Performance Baseline and Cost Management Plan
• Cost Perfoemance Baseline, Cost Management Plan and Activity Cost Estimates

Which of the following statements regarding Earned Vale (EV) is correct?

• The EV being measured is always greater than 1
• The EV is not used to measure the Cost Performance Index (CPI)
• The EV measure is always greater than the authorized Planned Value Budget for a component
• The term EV is often used to describe the percentage completion of project