PMP Questions ID 2116 the customer responsible for overseeing your project asks you to provide a written cost estimate

The customer responsible for overseeing your project asks you to provide a written cost estimate that is 30% higher than your estimate of the project's cost. He explained that the budgeting process requires managers to estimate pessimistically to ensure enough money is allocated for projects. What is the best way to handle it

Select one

Ask for information on risks that would cause your estimate to be too low

Add the 30% as a lump sum conginency fund to handle project risks

Create one cost baseline for budget allocation and a second one for the actual project management plan

Add the 30% to your cost estimate by spreading it evenly across all project activites

PMP Question No 2115 - Cost

A definitive estimate is

Select one

Within a range of -10per to +25per of actual

The most expensive to create

Created during the initiating process group

A level of estimating that can be achieved without the team's help

Answer

PMP Question No 2114 - Cost

Which of the following does not assess the value project management brings to an organization?

Select one

Cost benefit analysis.

Needs assessment

Net present value.

Value analysis.

Answer

PMP Question No 2113 - Cost

The project manager is working on a high-profile project where completing the project within budget is critical. The project manager is new, but well-trained, and is excited to see that the project is spending less than budgeted. As a result, the project manager was planning to take a holiday when a more senior project manager warned him that he has some important work to do on the project. Why would the senior project manager give such a warning on this project

Select one

Team meetings should be scheduled every week and a holiday would mean that one team meeting would have to be cancelled

The project manager neeeds to create a project control system to make sure there are no problems in the future

The project manager should look at how the cost performance compares to the schedule performance

A project that is under budget may also have contracts that need to be managed

Answer

PMP Question No 2112 - Cost

A trend report was given to the project manager, who reacted to the report by investigating what activity or activities had not been done, but should have been done, to date. What did the report show

Select one

The schedule performance index (SPI) was 1.3 and the estimate at completion (EAC) was greater than planned.

The cost performance index (CPI) was 0.8 and the schedule performance index (SPI) was 1.2

The budget at completion (BAC) was higher than planned

Actual cost was below planned and schedule progress was less than planned

Answer

New PMP Question & Answers with explanation