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  • Project Cost Management: Determine Budget

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    Erman Cevikkalp
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    This document contains 10 multiple choice questions about project cost management processes and concepts including: 1) Establishing an authorized cost baseline by aggregating estimated activity costs 2) Parametric estimating, which uses historical data and variables to estimate activity resource costs 3) Including contingency reserve (or management reserve) in cost estimates to account for uncertainty 4) Earned value management measurements like schedule variance, cost variance, and cost performance index (CPI) 5) Using earned value, actual costs, CPI, and schedule performance index (SPI) to calculate estimate at completion

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    7-Cost-6th

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    This document contains 10 multiple choice questions about project cost management processes and concepts including: 1) Establishing an authorized cost baseline by aggregating estimated activity costs 2) Parametric estimating, which uses historical data and variables to estimate activity resource costs 3) Including contingency reserve (or management reserve) in cost estimates to account for uncertainty 4) Earned value management measurements like schedule variance, cost variance, and cost performance index (CPI) 5) Using earned value, actual costs, CPI, and schedule performance index (SPI) to calculate estimate at completion

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    23 views2 pages

    Project Cost Management: Determine Budget

    Uploaded by

    Erman Cevikkalp
    This document contains 10 multiple choice questions about project cost management processes and concepts including: 1) Establishing an authorized cost baseline by aggregating estimated activity costs 2) Parametric estimating, which uses historical data and variables to estimate activity resource costs 3) Including contingency reserve (or management reserve) in cost estimates to account for uncertainty 4) Earned value management measurements like schedule variance, cost variance, and cost performance index (CPI) 5) Using earned value, actual costs, CPI, and schedule performance index (SPI) to calculate estimate at completion

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Chapter 7

    Project Cost Management

    7.1. You are completing the process of aggregating the estimated costs of individual activities
    or work packages to establish an authorized cost baseline. What process are you
    completing?

    A. Determine Budget
    B. Estimate Costs
    C. Control Costs
    D. Cost Performance Baseline

    7.2. What is the name of the technique that uses a statistical relationship between historical
    data and other variables to calculate a cost estimate for a schedule activity resource?

    A. Statistical Estimating
    B. Bottom-up Estimating
    C. Parametric Estimating
    D. Top-down Estimating

    7.3. During your cost estimating you include a figure for cost uncertainty on your project.
    What is this figure generally known as?

    A. Contingency Reserve
    B. Reserve Analysis
    C. Management Reserve
    D. Slush Fund

    7.4. All of the following are key elements used in earned value management EXCEPT

    A. Work performance information


    B. Earned value
    C. Planned value
    D. Actual cost

    7.5. The earned value on your project is $15,000, the planned value is $20,000 and the actual
    cost is $18,000. What is your schedule variance?

    A. 3000
    B. 5000
    C. -5000
    D. -3000
    Mentor Project Management
    Kiziltoprak, Kordere Sokak No:6/3 Kadikoy, 34724 İstanbul
    t +90 (216) 449 16 33 f +90(216) 449 28 48 www.mentor.com.tr
    1/2
    7.6. You are working on a large project and have determined that your cost variance (CV) is
    $50,000 and that your earned value (EV) is $125,000. What is your actual cost (AC)?

    A. 50000
    B. 75000
    C. 175000
    D. 125000

    7.7. Your project control measurements show a CPI of 0.89. What does this show about your
    project?

    A. That your project is experiencing a cost overrun for the work completed
    B. That your project is only spending 89% of the money need to get 100% of the job done
    C. That your project is experiencing a cost underrun for the work completed
    D. That your project is running behind schedule and over budget

    7.8. Your actual cost on the project is $10,000, the budget at completion is $20,000, the
    earned value is $8,000, the cumulative CPI is 0.8 and the cumulative SPI is 0.9. Using both
    your CPI and SPI factors what is your estimate at completion forecast?

    A. $18750
    B. $25000
    C. $22666
    D. $26666

    7.9. Your project has a CPI of 1.1 and a SPI of 0.9 What does this mean?

    A. You are experiencing a cost underrun and are ahead of schedule


    B. You are experiencing a cost overrun and are behind schedule
    C. You are experiencing a cost underrun and are behind schedule
    D. You are experiencing a cost overrun and are ahead of schedule

    7.10. The planned value on your project is $9,000, the earned value is $9,000, the actual
    cost is $8,000 and your cost variance is $1,000. What is your cost performance index?

    A. 1.125
    B. 1
    C. 0.88
    D. 8

    Mentor Project Management


    Kiziltoprak, Kordere Sokak No:6/3 Kadikoy, 34724 İstanbul
    t +90 (216) 449 16 33 f +90(216) 449 28 48 www.mentor.com.tr
    2/2

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