PMP Questions cost knowledge page 18

Select one

Schedule Variance Index is 1

Project is on budget and on schedule

There is no cost variance

There is no schedule variance

172.

Megawatt is estimating the expected cost of a new ERP system deployment project using the actual costs of an earlier similar ERP system deployment project as the basis for the cost. This is what type of estimating?

Select one

Analogous

Bottom-up

Expert Judgment

Parametric

173.

Costs incurred in one area of a project can offset costs in another area of the same project. However, it is not enough to consider only the costs of project execution when making project decisions. What other costs external to the project must also be considered?

Select one

Operating costs

Costs of conformance

Planning costs

Initiating costs

Select one

C. Initial phase

A. Closing phase

D. Intermediate phase

B. Preliminary phase

175.

Jackie is the project manager of a large project. During the Determine Budget process, she identifies that contingency reserves need to be set up for unplanned but potentially necessary changes that could result from realized risks identified in the risk register. Which of the following is true about reserves?

Select one

Management Reserves are not a part of project cost baseline, but will be included in the total budget for the project

Contingency Reserves are not a part of project cost baseline, but will be included in the total budget for the project

Both the Management Reserves and the Contingency Reserves are part of project cost baseline, and they are also not included in the total budget for the project

Both the Management Reserves and the Contingency Reserves are not part of project cost baseline, but they are included in the total budget for the project

176.

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.

177.

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.

178.

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

179.

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 project cost performance is measured against the cost baseline.

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

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

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

180.

You just completed the first phase of a multi-phase project. You have calculated earned value measurements and found that the current CPI is 0.79 and the current SPI is 0.98. Your next phase plan should focus first on which element of the project:

196 New PMP Cost Questions & Answers with explanation