PMP Questions cost knowledge page 7

61.

Company abc is evaluating three consulting companies to find a consultant to perform professional services. They request information on how the three consulting companies allocate fringe benefits to their clients. What type of cost is company abc asking about

Select one

Indirect

Variable

Direct

Fixed

Answer

PMP Question No 2121 - Cost

62.

Your company is in competition to win a major project for the government of a country. Your contacts in that country inform you that you must make a large payment to the foreign minister to be considered for the project. What should you do

Select one

Have the local contact make the payment

Do not make the payment

Infrom your company's management, and ask for direction

Make the payment

Answer

PMP Question No 2120 - Cost

63.

You and everyone involved are inexperienced with the methodology, techniques, and tools. In light of this new approach, what is the best thing to do

Select one

Revise the project estimate to account for the cost of training team members

Revise the schedule to account forr the decreased effectiveness of inexperienced resources

Request proper training be provided and paid for by the functional manager

Hire resources from the outside with experience in the methodology, tools and techniques to meet the schedule baseline

Answer

PMP Question No 2119 - Cost

64.

The approximate resource costs necessary for completing project activities are compiled during which project management process

Select one

Estimate costs

Cost aggregation

Forecasting

Funding limit reconciliation

Answer

PMP Question No 2118 - Cost

65.

You just completed a cost estimate on the project, and you're assuming there is a 15 per chance you will exceed this estimate. You are

Select one

Below the mean

Above the mean

Below the median

Above the median

Answer

PMP Question No 2116 - Cost

66.

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

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

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

Answer

PMP Question No 2115 - Cost

67.

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

68.

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

69.

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

70.

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

196 New PMP Cost Questions & Answers with explanation