A Flashcards
What is the primary purpose of project budget management?
To plan, estimate, and control the costs of a project.
True or False: A project budget includes only direct costs.
False
Fill in the blank: The ________ is a detailed breakdown of project costs.
budget baseline
What is the difference between fixed costs and variable costs?
Fixed costs remain constant regardless of project activity, while variable costs fluctuate with project activity.
What is the role of a budget manager?
To oversee budget creation, monitoring, and reporting throughout the project lifecycle.
Multiple Choice: Which of the following is NOT a component of project costs? A) Labor B) Materials C) Marketing D) Equipment
C) Marketing
What is an earned value management (EVM) technique?
A project management technique that integrates scope, schedule, and cost to assess project performance.
True or False: Contingency reserves are included in the project budget to address unforeseen expenses.
True
What does the term ‘cost variance’ refer to?
The difference between the budgeted cost of work performed and the actual cost of work performed.
Fill in the blank: The ________ is the planned value of a project at a specific point in time.
Budgeted Cost of Work Scheduled (BCWS)
What is the purpose of a cost management plan?
To outline how project costs will be planned, structured, and controlled.
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
D) All of the above
What are direct costs?
Costs that can be directly attributed to a specific project activity.
True or False: Indirect costs are always included in the project budget.
False
Fill in the blank: The ________ is the total budget allocated for a project.
project budget
What is a budget overrun?
A situation where actual project costs exceed the planned budget.
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
B) Budget variance
What is ‘scope creep’?
The uncontrolled expansion of project scope without adjustments to time, cost, and resources.
True or False: A project manager should only focus on costs once the project is underway.
False
What is the significance of a cash flow statement in project budgeting?
It provides insights into the timing of cash inflows and outflows during the project lifecycle.
Fill in the blank: A ________ is a graphical representation of the budgeted versus actual costs over time.
cost performance graph
What is a budget review?
A formal evaluation of the project budget to ensure alignment with project goals and objectives.
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
B) Improved resource allocation
What is the purpose of tracking project expenses?
To ensure that spending aligns with the budget and identify any discrepancies early.
True or False: Project budget management is only necessary for large projects.
False
