Assess your knowledge level on Project Cost Management by attempting the following online test from PM Expert -20 Randomly Selected Questions
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Process Names - Project schedule management
- Plan Cost management
- estimate cost
- determine Budget
- control cost
Below are some additional questions for Practice
1. Which of the following provides the least accuracy in estimating?
a. Rough order of magnitude
b. Budget estimate
c. Definitive estimate
d. WBS estimate
2. Of the following, which one is the most reliable source of information for estimating project costs?
a. Historical information from a recently completed project
b. An SME’s opinion
c. Recollections of team members that have worked on similar projects
d. Vendor’s white paper
3. Which one of the following best describes analogous estimating
a. Regression analysis
b. Bottom-up estimating
c. Less accurate
d. More accurate
4. Which of the following steps would be considered the least desirable corrective action for a project that has an unfavorable SPI?
a. Revise activities on the critical path
b. Re-baseline to eliminate schedule variance
c. Crash the schedule
d. Review activities with positive float
5. The Performance Measurement Baseline includes the following:
a. Summary level planning packages, control account budgets, and undistributed budget
b. Indirect costs, control account budgets and management reserve
c. Direct costs, control account budgets and management reserve
d. Direct costs, indirect costs and management reserve
6. The _______is the point at which work is planned, progress is measured, and earned value is computed
a. Work package
b. Control account
d. WBS element
7. Activity cost estimates are used as an input into which process?
a. Estimate Costs
b. Determine Budget
c. Analyze Costs
d. Control Costs
8. One of your members makes a change to the budget with your approval. In what process is he engaged?
a. Plan Costs
b. Estimate Costs
c. Cost Management
d. Control Costs
9. If earned value =$10,000, planned value= $8,000 and actual cost = $3,000, what is the schedule variance?
10. As a project manager, your BEST use of the project cost baseline would be to:
a. Measure and monitor cost performance on the project
b. Track approved changes
c. Calculate team performance bonuses
d. Measure and report on variable project costs
11. If you have a schedule variance of $500, this would indicate:
a. Planned value is less than earned value
b. Earned value is less than the estimate to complete
c. Actual cost is less than earned value
d. The ratio of earned value to planned value is 5:1
12. If budget at completion = $ 500, estimate to complete = $400, earned value= $100, and actual cost = $100, what is the estimate at complete?
13. Project A would yield $100,000 in benefit. Project B would yield $250,000 in benefit. Due to limited resources your company can perform only one of these. They elect to perform Project B because of the higher benefit. What is the opportunity cost of performing B?
a. -$ 150,000
b. $ 150,000
c. -$ 100,000
14. The difference between present value and net present value is
a. Present value is expressed as an interest rate, while net present value is expressed as a dollar figure
b. Present value is measure of the actual present value while net present value measures expected present value
c. Present value does not factor in costs
d. Present value is more accurate
15. Your schedule projected that you would reach 50% completion today on a road construction project that is paving 32 miles of new highway. Every 4 miles is scheduled to cost $5,000,000.Today, in your status meeting, you announced that you had completed 20 miles of the highway at a cost of $18,000,000. What is your planned value?
16. A task was scheduled to use two persons, full time, and take two weeks to
complete. Instead, the project manager was only able to assign one person to this
task. At the end of two weeks, the person assigned to the task completed 75% of the
work. What is the cost performance index?
17. Which of the following may not be contained in the Cost Management Plan?
A. Management Reserve
B. Control Thresholds
C. Cost Reporting requirement
D. Rules of Performance Measurement
18. If the SPI of a Project is above 1 and the CPI is below 1, then the Project
Management may like to look into:
A. Project risks
B. Modification of some activities to do fast tracking
C. Mix of the resources deployed in the Project
D. Addition of resources to do crashing
19 A Project was scheduled to be performed by four resources for three weeks, working throughout the Project duration. During first week, only two resources were assigned, whereas during second week, two more resources joined in. At the end of second week, 40% of the value of the work had been completed. What is the CPI for this Project at the end of second week?
20 Budget at completion of a 12 months project is 800000 USD. It is currently month five. The CPI values under best case scenario, most likely scenario and the worst case scenarios are 1, .8, .6 ; Based on the data available what is the forecasted cost at completion?
B. 1 million USD
C. 1.3 million USD
D. None of the above
1. a - Rough order magnitude is the correct answer
2. a – Historical information from a recently completed project
3. c – less accurate
4. b - Re-baseline to eliminate schedule variance
6. a – Work Package
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