PMP Questions ID 2107 the cost contingency reserve should be

All Domains

Agile & Scrum

People

Process

Business Environment

CLOUD COMPUTING

Communications

Cost

DECISION SUPPORT SYSTEM (DSS)

FIREWALL TYPES & IMPLEMENTATION

Integration

IT STRATEGY COMMITTEE & IT STEERING COMMITTEE

Procurement

Quality

Resource

Risk

Schedule

Scope

Stakeholder

New PMP Question & Answers with explanation

The cost contingency reserve should be:

Select one

Added to the base costs of the project to account for risks.

Hidden to prevent management from disallowing the reserve.

Maintained by management to cover cost overruns.

Added to each activity to provide the customer with a shorter critical path.

PMP Question No 2106 - Cost

Your project has a AC = $800million, PV = $890millions, and a CPI = 1.1. How is the project going?

Select one

The project is behind schedule

There is enough money to support an offsite team outing

Both the schedule and the budget are better than planned

You have no real concerns about either schedule or budget

Answer

PMP Question No 2105 - Cost

Cost performance measurement is best done through which of the following?

Select one

Using the 50/50 rule and making sure the life cycle cost is less than the project cost

Focusing on the amount expended last month and what will be expended the following month

Asking for a percent complete from each team member and reporting that in the monthly progress report

Calculating earned value and using the indexes and other calculations to report past performance and forecast future performance

Answer

PMP Question No 2104 - Cost

Although the stakeholders thought there was enough money in the budget, halfway through the project the cost performance index (CPI) is 0.7. To determine the root cause, several stakeholders audit the project and discover the project cost budget was estimated analogously. Although the activity estimates add up to the project estimate, the stakeholders think something was missing in how the estimate was completed. Which of the following describes what was missing?

Select one

Bottom-up estimating should have been used.

Estimated costs should be used to measure CPI.

Past history was not taken into account.

SPI should be used, not CPI.

Answer

PMP Question No 2103 - Cost

Your cost forecast shows that you will have a cost overrun at the end of the project. Which of the following should you do?

Select one

Cut quality.

Decrease scope.

Eliminate risks in estimates and reestimate.

Meet with the sponsor to find out what work can be done sooner.

Answer