Chapt 6

If earned value (EV) = 350, actual cost (AC) = 400, and planned value (PV) = 325, what is cost

variance (CV)?

• A. 350

• B. -75

• C. 400

• D. -50

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

• A. The cost of work completed.

• B. The value of work performed

• C. The anticipated total cost at project completion

• D. What it will cost to finish the project.

Which of the following is NOT needed in order to come up with a project estimate?

• A. A WBS

• B. A network diagram

• C. Risks

• D. Change requests

A rough order of magnitude estimate is made during which project management process group?

• Planning

• Closing

• Executing

• Initiating

Cost performance measurement is BEST done through which of the following?

• A. Asking for a percent complete from each team member and reporting that in the monthly progress report

• B. Calculating earned value and using the indexes and other calculations to report past

  performance and forecast future performance

• C. Using the 50/50 rule and making sure the life cycle cost is less than the project cost

• D. Focusing on the amount expended last month and what will be expended the following month

Project setup costs are an example of:

• A. Variable costs.

• B. Fixed costs.

• C. Overhead costs

• D. Opportunity costs

Your cost forecast shows that you will have a cost overrun at the end of the project. Which of the following should you do?

• Eliminate risks in estimates and re-estimate

• Meet with the sponsor to find out what work can be done sooner

• Cut quality

• Decrease scope

You are having difficulty estimating the cost of a project. Which of the following BEST describes the most probable cause of your difficulty?

• A. Inadequate scope definition

• B. Unavailability of desired resources

• C. Lack of historical records from previous projects

• D. Lack of company processes

A cost management plan contains a description of:

• The project costs.

• How resources are allocated

• The budgets and how they were calculated.

• The WBS level at which earned value will be calculated

The difference between the cost baseline and the cost budget can be BEST described as

• The management reserves

• The contingency reserves

• The project cost estimate

• The cost account