You are the project manager for a system upgrade project. The practice at your company is to estimate project cost based on historical data and statistical analysis. This cost estimation technique is called?
a. Analogous estimating.
b. Button-up estimating.
c. Parametric estimating.
d. Risk based estimating.
Which of the following represents processes concerned with establishing and controlling the cost baseline??
a. Plan Resource and Contain cost.
b. Estimate Costs, Develop Budget and Adhere to Baseline.
c. Determine Budget and Control Costs.
d. Resource Planning, Cost Estimating, and Cost Control
The Cost Performance Baseline is a time phased budget and is used as a basis to measure, monitor and control overall cost performance of the project. It is usually displayed in the form of:?
a. A Z curve
b. An inverted S curve
d. An S-curve
Which of the following process sequences is correct?:?
a. Create WBS, then Determine Budget, then Estimate Costs
b. Create WBS, then Estimate Costs, then Determine Budget
c. Determine Budget, then Estimate Costs, then Create WBS.
d. Estimate Costs, then Determine Budget, then Create WBS.
The project planning is progressing. The team is using historical data and expert opinion to attempt to get a total price for the project. This process is known as what?
a. Analogous estimating
b. Determine Budget
c. Estimate Costs
d. Control Cost
The value of all work that has been completed so far is:?
a. Earned value.
b. Estimate at complete.
c. Actual cost.
d. Planned value.
Which of the following metrics would tell the Project Manager the status of the schedule on a project??
a. Cost Variance (CV)
b. Budget at Completion (BAC)
c. Schedule Performance Index (SPI)
d. Cost Performance Index (CPI)
You are managing a project that is part of a large construction program. During the execution of your project you are alerted that the construction of a foundation is expected to experience a serious cost overrun. What would be your FIRST course of action?
a. Evaluate the cause and size of the overrun.
b. Stop execution until the problem is solved.
c. Contact the program manager to see if additional funds may be released.
d. Determine if you have sufficient budget reserves to cover the cost overrun.
Your schedule analysis has shown that your project has a high likelihood of experiencing a schedule overrun. You know this because the cumulative EV is much:?
a. Higher than the cumulative AC.
b. Higher than the cumulative PV.
c. Lower than the cumulative PV.
d. Lower than the cumulative CPI.
The warehouse expansion project is in the middle of planning when the Project Manager presents a status reporting method to the team. It’s called Earned Value Technique. To attain buy-in from the team, the Project Manager begins to explain what Earned Value status reporting can do for the project, explaining that it will measure which of the following:
a. Time and Cost
b. Scope, Time, and Cost
c. Scope and Cost
d. Scope and Time
Your best cost estimate for an activity is $200,000, but the estimate you document has a range of $ 150,000 to $350,000. This ranged estimate represents a:
a. Cost estimate.
b. Budgeted estimate.
c. Rough Order of Magnitude estimate.
d. Definitive estimate.
The Project Manager has just received the charter. He is preparing an initial estimate called a rough order of magnitude (ROM) estimate. What is the range of an order of magnitude (OOM) estimate?
a. -5% to +10%
b. -10% to +5%
c. -300% to +75%
d. -25% to +75%
Which of the following measurements would a Project Manager use to track the efficiency of the progress of the schedule??
a. Schedule Variance
b. Gantt chart
c. Variance Report
d. Schedule Performance Index
The project planning is progressing. But the team has become frustrated working with the accounting department to set up a system of codes that the accounting department will use to track work on the project. This is known as what?
a. Accounting codes
b. WBS numbering
c. Cost budgeting
d. Code of accounts
Which of the following cumulative measures indicates that your project is 9% under budget??
a. The cumulative AC was l00, and the cumulative EV was 110.
b. The cumulative PV was 100, and the cumulative AC was 110.
c. The cumulative AC was 110, and the cumulative EV was 100.
d. The cumulative EV was 100, and the cumulative PV was 110.
The cost performance baseline has all of the following characteristics EXCEPT:?
a. It is an authorized time-phased budget, use to measure, monitor, and control overall cost performance on the project.
b. It shows the actual cost expenditures throughout the life of the project.
c. It is developed by summing estimated costs by period.
d. It is usually displayed in the form of an S-curve.
The Project Manager and team are aggregating cost amounts of the pieces of the work packages and tasks. Which of the following processes are they performing??
a. Estimate Costs
b. Control Costs
c. Earned Value Management
d. Determine Budget
The project management team has performed earned value analysis on its project and discovered that the project is behind schedule and over budget. The SPI is 0.91 and the CPI is 0.62. The team is trying to determine how efficient it will need to be with the remaining resources on the project to complete the project on budget. Which of the following is the team trying to calculate?
a. Cost Variance
b. Cost Performance Index
c. Estimate to Complete
d. To Complete Performance Index
The project team is planning an upgrade to an electrical capacity for the manufacturing facility. During planning, the team members are confronted with the cost options for a new circuit that helps minimize the usage on the machinery. They consider the cost of purchasing the circuit for the time they need to develop the project. After that, the customer would take over the costs of the circuit. They are also considering a long-term commitment that the customer can make with the utility provider, which would provide a less costly solution over the use of the system. What type of analysis is the team considering?
a. Make-or-Buy analysis
b. Life Cycle Costing
c. Procurement Planning
d. Fixed Cost
Which of the following measurements would the Project Manager use to show the remaining amount to be spent on the project based on current spending efficiency??