PMP Questions cost knowledge

PMP Question No 2081 - Cost

Your manager is worried about the project schedule. There is a critical deliverable due to the federal government in two weeks. If you miss the deliverable, you could lose the entire contract. To help reduce the manager's stress, you show him the earned value calculations you just completed. They show your cost performance index (CPI) is 1.25, your actual cost (AC) is us $400 million, and your planned value (pv) is us $490 million. Should you manager be comfortable?

Select one

He needs more data

Yes, your SPI is 1.05

Yes, your SV is $10 million

No, your CPI is too high

Answer

PMP Question No 2442 - Cost

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?

Select one

-$650

$3,750

$3,100

$650

Answer

PMP Question No 2441 - Cost

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?

Select one

$7,750

$9,000

$20,000

$8,000

Answer

PMP Question No 2323 - Cost

While looking at the project cost baseline graph shown below, a project manager sees that the stair-step line’s last point is higher than the estimate at completion (EAC). What does this relationship mean for the project?

Select one

The project is running over budget

The management reserve is too large

Total funding for the project exceeds the project's anticipated needs

The project is behind schedule

Answer

PMP Question No 2301 - Cost

With reference to the diagram below, it can be inferred that the project is currently:

Select one

Behind schedule and under budget

Behind schedule and over budget

Ahead of schedule and under budget

Ahead of schedule and over budget

Answer

PMP Question No 2054 - Cost

While visiting the country where a new branch office is being built, you are told you must pay a us $5,000 fee to the government permit officer to obtain the facility permit required by law to start construction. The construction company tells you this is standard practice and is required by law. If you don't pay the fee, the project could be delayed, which would cost your company money. You have not worked in the country before. You do not speak the official language of the country and are communicating in a shared third language. What should you do?

Select one

Refuse to pay the fee

Pay the fee

Have the customer pay the fee

Have the construction company pay the fee

Answer

PMP Question No 2084 - Cost

You are managing a new oil purification project in a foreign country. A person informs you that you will have to pay him a "transfer fee" for the permit to move heavy equipment through the city. What is the first thing you should do?

Select one

Make sure the person is really a government official

Negotiate openly with the city officials

Do not pay the fee

Pay the fee, but only to the city

Answer

PMP Question No 2059 - Cost

A large, complex construction project in a foreign country requires the movement of heavy equipment through crowded city streets. The officials in the city know that you have a large, complicated project and that staying on schedule and within budget is important to your company. You have coordinated moving equipment in other countries for other projects without problems. To ensure the equipment is transported successfully, your contact in the country informs you that you will have to pay the local police a fee for coordinating traffic. What should you do?

Select one

Do not pay the fee if it is not part of the project estimate

Do not pay the fee because it is a bribe

Eliminate the work

Pay the fee

Answer

PMP Question No 2090 - Cost

Early in the life of your project, you are having a discussion with the sponsor about what estimating techniques should be used. You want a form of expert judgment, but the sponsor argues for analogous estimating. It would be best to:

Select one

Try to convince the sponsor to allow expert judgment because it is typically more accurate.

Suggest life cycle costing as a compromise.

Determine why the sponsor wants such an accurate estimate.

Agree to analogous estimating, as it is a form of expert judgment.

Answer

PMP Question No 2101 - Cost

10.

You have always been asked by your management to cut your project cost estimates by 10 percent after you submitted them. The scope of your new project is unclear, and there are over 30 stakeholders. Management expects a 25 percent reduction in downtime as a result of the project. Which of the following is the best course of action in this situation?

Select one

Provide an accurate estimate of the actual costs and be able to support your estimate

Meet with the team to identify where you can find 10 percent savings

Reduce the estimate and note the change in the risk response plan

Replan to achieve a 35 percent improvement in downtime

Answer

196 New PMP Cost Questions & Answers with explanation