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New matching, multiple choices exam questions from domain, process, business environment and agile which align with the new 2021 exam contain outline

197 New PMP Cost Questions & Answers with explanation

1.
A manufacturing project has a Schedule Performance Index (SPI) of 0.89 and a Cost Performance Index (CPI) of 0.91. Generally, what is the best explanation for why this occurred?
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2.
The planned announcement is a closely guarded secret, as the organization does not want the competition to attempt to steal secrets or deflect media attention the project is over budget to date. Which of the following is not a reason this could have occurred?
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3.

The following Gantt chart displays the schedule for a software upgrade project. The system analysis was completed on August 12th, but the system design and development activities are still in process as of October 3rd. Once the product is developed, the project team will need to test and deploy it, which must be completed by October 17th. What is the cost variance as of October 3rd?


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4.

A project manager is currently managing a manufacturing process improvement project which will be completed in five phases. The project manager has prepared the following chart to review the status of the project. Based on the information provided, what is the earned value of the project?


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5.
You are in the process of developing an approximation of the monetary resources needed to complete project work for a large-scale multinational project which will take at least seven years to complete. Your previous projects have all been domestic with short timeframes. As part of the process you are currently performing, what might you need to do differently compared with your past projects?
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6.
A project manager is developing a cost management plan and needs to determine the best source of funding for a project that is dictated by a legal requirement. The cost of capital is estimated at 9.7% for non-dividend paying equity, 6.7% for debt, and 5.1% for self-funding. The NPV of the project is $500,000 with an opportunity cost of $750,000. What is the project manager's best course of action?
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7.
The project has reached a stage where work is being done in seven countries. Project team members need to know in which currency they are to report their cost data. Which of the following should they reference?
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8.
A project team member runs an earned value analysis (EVA) report. There is an unexpected spike in actual costs over the last three weeks. The team member shows the report to the project manager and based on her analysis presents four possible reasons for the spike. Which reason is most probable?
Select one
9.
While working to determine the budget for an avionics project, the company decides to hire a highly reputable financial analyst that has worked in the aviation industry for three decades. Halfway through the project, a series of unanticipated risk events occur, and the project cannot pay its invoices. What is most likely to be the cause?
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10.
You are managing a hotel construction project, and you have asked your project team to calculate the current earned value metrics to determine the project performance. Your team reports back that the project's to-complete performance index (TCPI) is 0.9 based on the budget at completion (BAC). Which of the following is true regarding your project's current situation as reflected by this TCPI value?
Select one