PMP Questions cost knowledge page 8

PMP Question No 2111 - Cost

71.

The difference between the cost baseline and the cost budget can be best described as:

Select one

The contingency reserves.

The management reserves.

The cost account.

The project cost estimate.

Answer

PMP Question No 2110 - Cost

72.

Estimate at completion (EAC) is a periodic evaluation of:

Select one

The cost of work completed.

What it will cost to finish the project

The value of work performed.

The anticipated total cost at project completion.

Answer

PMP Question No 2109 - Cost

73.

Monitoring cost expended to date in order to detect variances from the plan occurs during:

Select one

The creation of the cost change management plan.

Project performance reviews.

Updating the cost baseline.

Recommending corrective actions.

Answer

PMP Question No 2108 - Cost

74.

You have estimated the project cost to be us $850k within -25/+75 percent of actual. This is a

Select one

Budget estimate

Definitive estimate

Parametric estimate

Rough order of magnitude estimate

Answer

PMP Question No 2107 - Cost

75.

The cost contingency reserve should be:

Select one

Added to each activity to provide the customer with a shorter critical path.

Maintained by management to cover cost overruns.

Hidden to prevent management from disallowing the reserve.

Added to the base costs of the project to account for risks.

Answer

PMP Question No 2106 - Cost

76.

Your project has a AC = $800million, PV = $890millions, and a CPI = 1.1. How is the project going?

Select one

The project is behind schedule

There is enough money to support an offsite team outing

Both the schedule and the budget are better than planned

You have no real concerns about either schedule or budget

Answer

PMP Question No 2105 - Cost

77.

Cost performance measurement is best done through which of the following?

Select one

Using the 50/50 rule and making sure the life cycle cost is less than the project cost

Focusing on the amount expended last month and what will be expended the following month

Asking for a percent complete from each team member and reporting that in the monthly progress report

Calculating earned value and using the indexes and other calculations to report past performance and forecast future performance

Answer

PMP Question No 2103 - Cost

78.

Your cost forecast shows that you will have a cost overrun at the end of the project. Which of the following should you do?

Select one

Cut quality.

Decrease scope.

Eliminate risks in estimates and reestimate.

Meet with the sponsor to find out what work can be done sooner.

Answer

PMP Question No 2102 - Cost

79.

What would be the best explanation for the following: both the cost variance and schedule variance are negative, but the cost variance is lower than the schedule variance

Select one

The project underspent, because costs were lower than planned and activities were easier to complete than planned

The project overspent due to increased costs and yet completed some activities faster

The project activities took longer then excepted, but cost were lower

The project underspent because all work was not completed, but overspent work that was completed

Answer

PMP Question No 2100 - Cost

80.

Your organization is hoping to meet its strategic objective to grow the business by expanding to foreign markets. Since working with international sellers is new to you as a project manager you are researching potential issues others have encountered on international projects. You have learned of situations where issues have arisen due to illegal payments. Which e following payments on an international project is unacceptable?

Select one

Offering to pay the country officials for not awarding the project to a particular company

Payment for mail service

Payment for police protection

Payment for a foreign workers application license required in the country

Answer

196 New PMP Cost Questions & Answers with explanation