PMP Certification Training - Control Cost

The video tutorial covers the process of controlling costs in project management, focusing on monitoring project status, managing changes to the cost baseline, and using various tools and techniques. It explains inputs like the project management plan and funding requirements, and details tools such as expert judgment and data analysis. The tutorial also delves into earned value management, budget and variance analysis, and performance indexes like SPI and CPI, providing a comprehensive guide to managing project costs effectively.

What is the primary purpose of controlling costs in project management?

• To increase project scope

• To reduce project quality

• To monitor project status and manage cost changes

• To delay project timelines

Which of the following is NOT an input for controlling project costs?

• Project funding requirements

• Project management plan

• Organizational process assets

• Marketing strategy

Which technique is used to compare the performance measurement baseline to actual performance?

• Trend analysis

• Earned value analysis

• Reserve analysis

• Variance analysis

What does 'earned value' represent in project management?

• The actual cost incurred for the work performed

• The total project budget

• The measure of work performed in terms of the budget authorized

• The planned value of the project

How is 'budget at completion' defined?

• The estimated cost to complete the project

• The total amount of planned value for the project

• The cost of the last phase of the project

• The variance between planned and actual costs

What does a Schedule Performance Index (SPI) greater than one indicate?

• The project is behind schedule

• The project is ahead of schedule

• The project is over budget

• The project is under budget

Which index measures the cost efficiency of budgeted resources?

• Variance at Completion (VAC)

• Estimate at Completion (EAC)

• Schedule Performance Index (SPI)

• Cost Performance Index (CPI)

What is the formula for calculating the To-Complete Performance Index (TCPI)?

• Actual Cost / Planned Value

• Planned Value / Earned Value

• Remaining Work / Remaining Funds

• Earned Value / Actual Cost

Which forecasting formula assumes future performance will mirror past performance?

• EAC forecast for work performed at the budgeted rate

• EAC forecast for work performed at the present CPI

• EAC forecast considering both SPI and CPI

• EAC forecast for work performed at the planned value

What does the Estimate at Completion (EAC) represent?

• The variance between planned and actual costs

• The total amount of planned value

• The cost of the next project phase

• The total cost of the project at completion