WorksheetsProject Management Quiz Cost
Total questions: 23
Worksheet time: 35mins
What does the SPI tell you if 40% of the project is completed after four months and the actual cost is $25,000?
What does the CPI tell you if 40% of the project is completed and the actual cost is $30,000?
What would you call an estimate with a range of $75,000 to $200,000 and the actual cost around $150,000?
What is the SPI if the first five components of a project are completed at a cost of $8,000 out of fifteen components?
What will you do FIRST upon discovering significant cost overruns due to damages in the foundation of a project?
Steve, a project manager, is trying to figure out the performance that must be achieved in order to meet the financial and schedule goals in his project. He is using a measurement that will give him the status on the remaining work with respect to the funds remaining. Which of the following measures is Steve using?
Cost aggregation
Variance analysis
Trend analysis
To-Complete Performance Index (TCPI)
A project manager working on a construction project planned to install new carpets in all four rooms of the house. She measured the square footage of all the rooms and then multiplied that figure by a set cost factor to estimate the cost for installing the carpet. This is an example of:
Bottom-up estimating
Analogous estimating
Parametric estimating
Three-point estimating
What is the best course of action for Lori in a situation where the sponsor asks to reduce the cost estimate by at least ten percent?
Replace a couple of expensive resources with lower-cost resources.
Continue with the project and constantly find an opportunity to save money for a total savings of 10 percent.
Have an urgent meeting with the team members and ask them to be innovative and squeeze their estimate.
Inform the sponsor of the activities to be cut.
You are in the Determine Budget process of developing a budget or cost baseline and project funding requirements. All of the following are inputs in this process EXCEPT:
Work performance data
Cost management plan
Activity cost estimates
Project schedule
To develop an online accounting application for your software development project, you are working on figuring out the total funding requirements including all reserves of the project. Which of the following will help you the MOST in this case?
Project budget and contingency reserves
Funding limit reconciliation
Cost baseline and management reserves
Management reserves and contingency reserves
When will the Earned Value Management (EVM) not be very beneficial?
To measure a project’s progress against the project scope, cost, and schedule baselines.
To forecast future performance and the project’s completion date and final cost.
To provide schedule and budget variances during the project.
To develop the project cost baseline.
Which of the following is true regarding the cost management plan for the data center project?
Activity cost estimates will be rounded to a prescribed precision; for example, $100, $1,000, and so on.
Units of measurements such as hours, days, weeks, or a lump sum amount will be used to estimate resources.
The primary concern is determining the amount of resources needed to complete the project activities.
The WBS provides a framework for the cost management plan, and a control account (CA) in the WBS is used to monitor and control the project cost.
For an IT project, your EV=$130,500, PV=$125,500, and AC=$129,000. Which one of the following statements is TRUE?
The project is behind schedule and over budget.
The project is ahead of schedule and under budget.
The project is behind schedule and under budget.
The project is ahead of schedule and over budget.
What is the contingency reserve used for?
To compensate inadequacies in your original cost planning.
To address the cost impact of the risks remaining during the Plan Risk Responses process.
To handle anticipated and certain events in your project.
To handle unanticipated events or surprises in your project.
You recently took over a project from another project manager who left the organization. You find out that the project has a BAC=$45,000, PV=$30,000, cumulative AC=$25,000, and cumulative EV=$24,000. You decided to perform a forecasting analysis and calculated the values for EAC, ETC, TCPI, and VAC. Which of the following is NOT true?
You will need $21,875 more to complete this project.
The project will cost $46,875.
The project performance is not good as TCPI is 1.05.
The project will be under budget by $1,875.
What are the SPI and CPI given the EV, AC, and PV values?
0.925 and 1.59
1.59 and 0.925
0.919 and 1.77
1.77 and 0.919
You are overseeing a mobile application development project. While reviewing an earned value report, you observe that the SPI is 1.2 and the CPI is 0.9. Which statement can you make about the project?
On track according to schedule and budget baselines.
Behind the schedule and over budget.
Ahead of the schedule and over budget.
On schedule and under budget.
With the help of your team members, you just finished the development of an approximation of the costs of all resources, such as labor, materials, equipment, services, facilities, and other special items associated with each schedule activity. What should you do NEXT?
Control costs
Resource leveling
Bottom-up estimating
Determine budget
You are in the Determine Budget process of developing a budget or cost baseline and project funding requirements. All of the following are tools & techniques in this process EXCEPT:
Cost aggregation
Data analysis
Funding limit reconciliation
Performance review
Which of the following statements is FALSE about cost baseline?
It is a time-phased budget used to monitor, measure, and control cost performance during the project.
It is usually displayed in the form of an S-curve.
It assigns cost estimates for expected future period operating costs.
It aggregates the estimated costs of project activities to work packages, then to control accounts, and finally to the project.
Can the project be completed within the approved budget?
Earned value management
Cost baseline
Cost management plan
Funding limit reconciliation
Which one of the following is FALSE about TCPI?
TCPI calculates the performance that must be achieved in order to meet financial or schedule goals.
TCPI usually determines the status on the remaining work with respect to the funds remaining.
If the cumulative CPI falls below the baseline plan, all future work must be performed at the TCPI to achieve the planned BAC.
If the cumulative CPI falls below the baseline plan, all future work must be performed below the TCPI to achieve the planned BAC.
You are the project manager of a construction project that will take six months to complete and will cost $75,000/month. At the end of the third month, you were asked to find out the cumulative SPI for the project and report it to management. While reviewing the project status, you found that you have spent $80,000 in the first month, $72,000 in the second month, and $75,000 in the third month. You also found that the project was 15 percent complete at the end of the first month, 35 percent complete at the end of the second month, and 45 percent complete at the end of the third month. If you planned to complete 50 percent of the work by this time, what is the cumulative SPI at the end of month three?
0.5
0.9
0.34
1.1
