A

Question 1

What is the primary purpose of project budget management?

Answer 1

To plan, estimate, and control the costs of a project.

Question 2

True or False: A project budget includes only direct costs.

Answer 2

False

Question 3

Fill in the blank: The ________ is a detailed breakdown of project costs.

Answer 3

budget baseline

Question 4

What is the difference between fixed costs and variable costs?

Answer 4

Fixed costs remain constant regardless of project activity, while variable costs fluctuate with project activity.

Question 5

What is the role of a budget manager?

Answer 5

To oversee budget creation, monitoring, and reporting throughout the project lifecycle.

Question 6

Multiple Choice: Which of the following is NOT a component of project costs? A) Labor B) Materials C) Marketing D) Equipment

Answer 6

C) Marketing

Question 7

What is an earned value management (EVM) technique?

Answer 7

A project management technique that integrates scope, schedule, and cost to assess project performance.

Question 8

True or False: Contingency reserves are included in the project budget to address unforeseen expenses.

Answer 8

True

Question 9

What does the term ‘cost variance’ refer to?

Answer 9

The difference between the budgeted cost of work performed and the actual cost of work performed.

Question 10

Fill in the blank: The ________ is the planned value of a project at a specific point in time.

Answer 10

Budgeted Cost of Work Scheduled (BCWS)

Question 11

What is the purpose of a cost management plan?

Answer 11

To outline how project costs will be planned, structured, and controlled.

Question 12

Multiple Choice: Which of the following is a method for estimating project costs? A) Bottom-up estimating B) Top-down estimating C) Analogous estimating D) All of the above

Answer 12

D) All of the above

Question 13

What are direct costs?

Answer 13

Costs that can be directly attributed to a specific project activity.

Question 14

True or False: Indirect costs are always included in the project budget.

Answer 14

False

Question 15

Fill in the blank: The ________ is the total budget allocated for a project.

Answer 15

project budget

Question 16

What is a budget overrun?

Answer 16

A situation where actual project costs exceed the planned budget.

Question 17

Multiple Choice: Which term describes the difference between the planned budget and the actual expenditure? A) Cost performance index B) Budget variance C) Cost baseline D) Cash flow

Answer 17

B) Budget variance

Question 18

What is ‘scope creep’?

Answer 18

The uncontrolled expansion of project scope without adjustments to time, cost, and resources.

Question 19

True or False: A project manager should only focus on costs once the project is underway.

Answer 19

False

Question 20

What is the significance of a cash flow statement in project budgeting?

Answer 20

It provides insights into the timing of cash inflows and outflows during the project lifecycle.

Question 21

Fill in the blank: A ________ is a graphical representation of the budgeted versus actual costs over time.

Answer 21

cost performance graph

Question 22

What is a budget review?

Answer 22

A formal evaluation of the project budget to ensure alignment with project goals and objectives.

Question 23

Multiple Choice: Which of the following is a key benefit of effective project budget management? A) Increased project duration B) Improved resource allocation C) Higher project costs D) Less stakeholder involvement

Answer 23

B) Improved resource allocation

Question 24

What is the purpose of tracking project expenses?

Answer 24

To ensure that spending aligns with the budget and identify any discrepancies early.

Question 25

True or False: Project budget management is only necessary for large projects.

Answer 25

False