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CAPM > Costs > Flashcards

Costs Flashcards

1
Q

Which of the following should be considered when tailoring processes for project cost management?
A. Estimating, governance, and continuous improvement
B. Budgeting, knowledge management, and risk mitigation
C. Estimating, budgeting, and governance
D. Budgeting, continuous improvement, and knowledge management.

A

Estimating, budgeting, and governance

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2
Q

Time or money allocated in the schedule or cost baseline for known risk with active response strategies is:
A. Contingency reserve
B. Risk allocation reserve
C. Top-down reserve
D. Management reserve

A

Contingency reserve

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3
Q

Project Cost Management includes all of the following processes EXCEPT:
A. Determine budget
B. Level resources
C. Control costs
D. Plan cost management

A

Level resources

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4
Q

Which of the following tasks are involved in project cost management?
A. Financing, Budgeting, and allocating
B. Financing, Allocating, and spending
C. Estimating, budgeting, and financing
D. Estimating, financing, and spending.

A

Estimating, budgeting, and financing

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5
Q

Determining the appropriate monetary resources required to complete project activities is the purpose of what project cost management process?
A. Control cost
B. Plan Cost Management
C. Estimate cost
D. Determine budget

A

Estimate cost

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6
Q

What describes the approved version of the time-phased project budget, excluding any management reserves, which can be changed only through formal change control procedures and is used as a basis for comparison to actual results?
A. Resource baseline
B. Cost baseline
C. Budget baseline
D. Schedule baseline

A

Cost baseline

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7
Q

Which of the following best defines the cost management plan?
A. The best way to manage the project budget constraints
B. What tools will be used to control the project budget
C. How costs will be planned, structured, and controlled
D. The cost of resource types and deliverables

A

How costs will be planned, structured, and controlled

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8
Q

The cost management plan has all of the following characteristics EXCEPT:
A. It may specify variance thresholds for monitoring cost performance to indicate an agreed-upon amount of variation allowed before some action needs to be taken
B. It describes how the project costs will be planned, structured, and controlled
C. It is based on project cost estimates and is separate from the project management plan
D. It may specify the level of precision, which is the degree to which activity cost estimates will be rounded up or down

A

It is based on project cost estimates and is separate from the project management plan

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9
Q

Which of the following is a tool and technique of the Plan Cost Management process?
A. Meetings
B. Virtual teams
C. Data gathering
D. Interpersonal and team skills

A

Meetings

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10
Q

Which of the following inputs is referenced in the plan cost management process?
A. Agreements
B. Project charter
C. Business documents
D. Project documents

A

Project charter

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11
Q

Which of the following outputs is generated as a result of conducting the Plan Cost Management process?
A. Cost Management Plan
B. Change requests
C. Deliverables
D. Organizational Process Assets updates

A

Cost Management Plan

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12
Q

Which of the following most accurately describes the quantitative assessments of the probable cause required to complete project work, as well as contingency amounts to account for identified risk and management reserve to cover unplanned work?
A. Duration estimates
B. Parametric estimates
C. Cost estimates
D. Budget estimates

A

Cost estimates

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13
Q

Which of the following are estimated for resources that are applied to the cost estimate?
A. Technology, materials, and exchange rates
B. Materials, exchange rates, and time shortages
C. Labor, time shortages, and equipment
D. Labor, materials, and equipment

A

Labor, materials, and equipment

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14
Q

What is an input to the Estimate Costs process?
A. Risk register
B. Data analysis
C. Project charter
D. Assumption Log

A

Risk register

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15
Q

What is an output of the Estimate Costs process?
A. Expert judgement
B. Scope baseline
C. Basis of estimates
D. Cost of quality

A

Basis of estimates

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16
Q

What is an input to the Estimate Costs process?
A. Project charter
B. Resource calendars
C. Agreements
D. Scope baseline

A

Scope baseline

17
Q

Parametric estimating involves:
A. Using a statistical relationship between relevant historical data and other variables to calculate a cost estimate for project work
B. Using the actual cost of a previous similar project to estimate the cost of the current project
C. Calculating individual cost estimates for each work package and integrating them to obtain the total cost of the project
D. Defining cost and duration parameters of the project lifecycle.

A

Using a statistical relationship between relevant historical data and other variables to calculate a cost estimate for project work

18
Q

Analogous cost estimating uses which of the following costs?
A. The budget cost of all project components
B. The forecasted cost of individual work packages
C. The actual cost of previous, similar projects
D. The total cost of all estimated resource types

A

The actual cost of previous, similar projects

19
Q

Which of the following is an output in the Determine Budget process?
A. Change requests
B. Cost forecasts
C. Project funding requirements
D. Financing

A

Project funding requirements

20
Q

Which of the following is an input to the Determine Budget process?
A. Quality management plan
B. Stakeholder engagement plan
C. Risk management plan
D. Resource management plan

A

Resource management plan

21
Q

Which of the following represents process concerned with establishing and controlling the cost baseline?
A. Determine Budget and Control Costs
B. Plan Resource Management, Cost Estimating, and Cost Control
C. Plan Resource Management and Control Costs
D. Estimate Costs, Develop Budget, and Adhere to Baseline

A

Determine Budget and Control Costs
or
Estimate Costs, Develop Budget, and Adhere to Baseline

22
Q

The cost performance baseline has all of the following characteristics EXCEPT:
A. It is the approved version of the time phase project budget, excluding any management reserves, and is used as the basis for comparison with actual results.
B. It shows the actual cost expenditures throughout the project lifecycle
C. It is developed as a summation of the approved budgets for the different schedule activities
D. It is typically displayed in the form of an S-curve.

A

It shows the actual cost expenditures throughout the project lifecycle

23
Q

How is the cost baseline developed?
A. By totaling the resource cost, technology cost and management costs
B. As a result of the management reserves minus the total budget
C. As a summation of the approved budgets for the different schedule activities
D. By creating an all-encompassing list of actual cost expenditures

A

As a summation of the approved budgets for the different schedule activities

24
Q

Which of the following is a tool or technique for the determined budget process?
A. Alternative analysis
B. Trend analysis
C. Variance analysis
D. Reserve analysis

A

Reserve analysis

25
Q

Your Earned Value Management analysis indicates that your project is falling behind its baseline schedule. You know this because the cumulative EV is much:
A. Lower than the cumulative CPI
B. Higher than the cumulative AC
C. Lower than the cumulative PV
D. Higher than the cumulative PV

A

Lower than the cumulative PV

26
Q

Project cost control includes all of the following EXCEPT:
A. Influencing the factors that create changes to the authorized cost baseline
B. Allocating the overall estimates to individual work packages to establish a cost baseline
C. Monitoring cost performance to isolate and understand variances from the approved cost baseline
D. Informing appropriate stakeholders of all approved changes and associated cost.

A

Allocating the overall estimates to individual work packages to establish a cost baseline

27
Q

When using Earned Value Management, the performance measurement baseline is compared to what result to determine if a change, corrective action, or preventative action is necessary?
A. Forecasted results
B. Budgeted results
C. Resource results
D. Actual results

A

Actual results

28
Q

Using the data below, which item is MOST over budget?
Item / PV / AC / EV
1 / 10,000 / 11,000 / 10,000
2 / 9,000 / 8,000 / 7,000
3 / 8,000 / 8,000 / 8,000
4 / 7,000 / 7,000 / 5,000
A. Item 3
B. Item 1
C. Item 2
D. Item 4

A

Item 4

29
Q

Your sponsor specifies that there is no additional money in the budget for your project and ask you to complete the project at the original budget at completion. To achieve that goal, you and your team must complete the remaining work at the two complete performance index of:
BAC = 200
PV = 100
AC = 120
EV = 80
A. 1
B. 1.5
C. .67
D. 2

A

1.5 BAC: (BAC – EV) / (BAC – AC)

30
Q

What is the best definition of the variance at completion (VAC)?
A. A calculation of the amount of time spent ahead or behind schedule, expressed as the difference between the project schedule and the completion date
B. The amount of the project is ahead or behind the planned delivery date, expressed as the difference between the earned value and the planned value
C. An estimate of the amount of total deliverables, expressed as the difference between the cost per deliverable at completion and the estimate at completion
D. The projection of the amount of budget deficit or surplus, expressed as the difference between the budget at completion and the estimate at completion

A

The projection of the amount of budget deficit or surplus, expressed as the difference between the budget at completion and the estimate at completion

31
Q

Using the data below, assuming that all future work will be performed at the budget rate, the estimate at completion (EAC) is:
BAC = 200
PV = 100
AC = 120
EV = 80
A. 220
B. 240
C. 260
D. 200

A

240 EAC = (BAC – EV) + AC

32
Q

In earned value management, the cost variance is equal to:
A. EV minus AC
B. EV minus PV
C. PV minus EV
D. AC minus EV

A

EV minus AC CV = EV - AC

33
Q

What input to the control cost process contains data on project status such as which cost have been authorized, incurred, invoiced, and paid?
A. Work breakdown structure (WBS)
B. Project management plan
C. Work performance data
D. Project funding requirements

A

Work performance data

34
Q

What is the definition of estimate at completion (EAC)?
A. The expected sum of all budgets established for the work to be performed
B. The expected cost to finish all remaining project work
C. The actual costs incurred for work completed plus an estimate to complete the remaining work
D. The expected cost incurred for the work performed on any activity completed

A

The actual costs incurred for work completed plus an estimate to complete the remaining work

35
Q

What is a project’s status if the variance at completion (VAC) is positive?
A. Behind schedule
B. Over budget
C. Under budget
D. Ahead of schedule

A

Under budget

CAPM (12 decks)

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