PMP Questions ID 1996 project costs are estimated for all project activities and are aggregated to establish a cost bas

Project costs are estimated for all project activities and are aggregated to establish a cost baseline. Which of the following statements about the cost baseline is not true?

Select one

The cost baseline includes all authorized budgets, including management reserves.

The project cost performance is measured against the cost baseline.

The cost baseline is in the form of an ‘S’ curve.

The cost baseline is an output of the determine budget process.

Rodney is in the process of preparing the project performance report for the team meeting. He is expecting many questions from his stakeholders on the budget and schedule. He calculates the following values: Budget at Completion (BAC) = $22,000, Earned Value (EV) = $13,000, Planned Value (PV) = $14,000, Actual cost (AC) = $15,000. What is the Estimate at Completion (EAC) for the project, if the work is performed at the budgeted rate?

Select one

$24,000

$36,000

$22,500

$37,000

Which of the following statements about the planned value, the earned value, the schedule variance, and the cost variance of a project is false?

Select one

The cost variance is the difference between the earned value and the actual cost.

The schedule variance is the difference between the earned value and the planned value.

The earned value is the value of work to be completed in terms of the approved budget.

The planned value is the budget authorized for the work to be performed.

During the course of the project, the project management team developed a forecast for the estimate at completion (EAC) based on the project performance. Which of the following statements about EAC is correct?

Select one

The EAC forecast based on the Bottom-up estimate to complete (ETC) requires a new estimate.

The EAC forecast is best estimated using the estimate to complete (ETC) work performed considering both SPI and CPI factors.

The EAC forecast is best estimated using the estimate to complete (ETC) work performed at the present CPI.

The EAC forecast is best estimated using the estimate to complete (ETC) work performed at the budgeted rate.

Variance Analysis is an important tool used in the Control Costs process. Which of the following statements regarding variances is correct?

Select one

The percentage range of acceptable variances will tend to increase as more work is accomplished.

The percentage range of acceptable variances is high at the start of a project, tends to decrease in the middle of a project, and then tends to increase as the project nears completion.

The percentage range of acceptable variances is a constant all through the project.

The percentage range of acceptable variances will tend to decrease as more work is accomplished.

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