Part 5 - Developing cost estimates and Budgets

Question 1

1. Identify the sources from where you can obtain cost estimate information.

A. Trade organizations, vendors, and suppliers.

B. Past project experience and current project team members.

C. Project schedule.

D. Commercial databases.

Answer 1

1.

Correct Answer(s):   
 A

B

D

Question 2

2. What should be included in a project cost baseline?

A. Estimates of the most likely project costs.

B. Management contingency reserves.

C. Unforeseen expenditures for the project.

D. Assumptions for the estimates.

Answer 2

2.

Correct Answer(s):   
 A

D

Question 3

3. What step will a project manager take to help prevent cash flow problems?

A. Use the contingency reserves of other projects.

B. Make efforts to engage the finance department to put in place a cash flow forecast.

C. Make sure customers are financially stable.

D. Request additional funding from project sponsors.

Answer 3

3.

Correct Answer: B

Question 4

4. Which cost estimating method requires managers to use their experience, historical information from similar projects, and expert judgment to determine a total project cost or time estimate?

A. Analogous or top-down estimating

B. Parametric estimating

C. Bottom-up estimating

D. Revenue estimating

Answer 4

4.

Correct Answer: A

Question 5

5. Which are inputs to the determine budgets process?

A. Activity cost estimates, Resource calendars, Funding limit reconciliation, and cost aggregation.

B. Basis of estimates, scope baseline, resource calendars, and reserve analysis.

C. Activity cost estimates, scope baseline, project schedule, and contracts.

D. Activity cost estimates, scope baseline, project schedule, and cost performance baseline.

Answer 5

5.

Correct Answer: C

Question 6

6. Which is a method of adjusting, spending, scheduling, and resource allocation in order to bring expenditures into alignment with budgetary constraints?

A. Cost aggregation

B. Funding limit reconciliation

C. Reserve analysis

D. Activity cost estimation

Answer 6

6.

Correct Answer: B

Question 7

7. Which guidelines allow you as the project manager to reconcile the costs with the funding that has been approved by the sponsor?

A. Map the project budget, scope statement, and schedule to the funding available.

B. Involve the project sponsor.

C. Consider adding in a contingency amount to accommodate the risk of incurring extra expenses.

D. Partner formally with the company’s financial decision makers.

Answer 7

7.

Correct Answer(s):   
 A

B

D

Question 7

ACWP

Answer 7

Actual cost of work performed

Question 8

BACK

Answer 8

Budget at Completion
Sum of all budgets
Total planned value for the project

Question 9

BCWP

Answer 9

Budgeted cost of work performed

Also called Earned Value (EV)

Question 10

BCWS

Answer 10

Budgeted cost of work scheduled

Also called Planned Value (PV)