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Professional Development
Professional Development
Project Cost Management
20 questions
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- 1. Multiple Choice
Which of the following is a valid way of evaluating the financial feasibility of a project?
Return on Investment
Net Present Value
Internal Rate of Return
All of the above
- 2. Multiple Choice
The calculation of the total cost of a product, from R & D to operational support and disposal, is called
Birth-to-death costing
Life-cycle costing
Summary costing
Depreciation costing
- 3. Multiple Choice
If BCWS = 1000, BCWP = 1200, and ACWP = 1300, the project is
Ahead of Schedule and under budget
Behind Schedule and under budget
Ahead of Schedule and over budget
Behind Schedule and over budget
- 4. Multiple Choice
If BAC = Rs.20,000/- and the project is 40% complete, then the earned value is
Rs. 8,000/-
Rs. 5,000/-
Rs. 20,000/-
Cannot be determined
- 5. Multiple Choice
If BAC = Rs.12,000/- and CPI = 1.2, then the variance at completion is
Rs. -2,000/-
Rs. 2,000/-
Rs. 3,000/-
Rs. -3,000/-
- 6. Multiple Choice
If a project manager is looking for revenue for a value-added scope change, the project manager's first choice would be
Management reserve
Customer funded scope change
Undistributed budget
Retained profits
- 7. Multiple Choice
EAC, ETC, SPI and CPI most often appear in which type of report?
Performance
Status
Forecast
Exception
- 8. Multiple Choice
If CPI = 1,1 and SPI = 0.95, then the trend for the project is
Running over budget but ahead of schedule
Running over budget but behind schedule
Running under budget and ahead of schedule
Running under budget but behind schedule
- 9. Multiple Choice
The document that describes a work package, identifies the cost centers allowed to charge against this work package, and establishes the charge number for this work package is the
Code of accounts
Work Breakdown Structure
Work Authorization Form
None of the above
- 10. Multiple Choice
The cost of financial baseline of a project is composed of
Distributed budget only
Distributed and undistributed budget only
Distributed budget, undistributed budget, and the management reserve only
Distributed budget, undistributed budget, management reserve, and profit only
- 11. Multiple Choice
What are the three points considered in PERT cost estimating technique?
Planned, Actual, Approximate
Optimistic, Pessimistic, Most likely
Optimistic, Pessimistic, Actual
Estimate, Approximate, Actual
- 12. Multiple Choice
The EVM analysis of Project A has found that CPI is 1.3 and SPI is 0.95, then what is the status of the project A?
Project is under the budget and ahead of the schedule
Project will not meet projected deadline
Project will be over budget
Project is over budget and behind schedule
- 13. Multiple Choice
If earned value = 1,000, planned value = 1,400 and actual cost = 1,200, the cost performance index is
1.2
0.9
0.714
0.833
- 14. Multiple Choice
The authorized budget assigned for a schedule work is called as
Earned Value
Planned Value
Budget
Cost
- 15. Multiple Choice
Cost baseline consists of all the following except
Work package costs
Control account costs
Contingency reserves
Management reserves
- 16. Multiple Choice
The formula for calculating Cost Variance is
CV = EV - AC
CV = AC - EV
CV = EV / AC
CV = PV - PV
- 17. Multiple Choice
Which of the following is the formula for finding the estimate to complete the project from today
ETC = EAC - BAC
ETC = EAC - AC
ETC = EAC - EV
ETC = EAC - PV
- 18. Multiple Choice
While EVM analysis, it was found that CPI of Project T2 is 0.95. What can be deduced from this data regarding the status of project T2
Project T2 is running behind schedule
Project T2 is running ahead of schedule
Project T2 is progressing within the planned budget
Project T2 is exceeding the planned budget
- 19. Multiple Choice
During the Earned Value Analysis manager has found earned value is equal to actual cost. What does it mean?
CPI is infinity
Project is under budget and on schedule
There is no cost variance
CPI = 0
- 20. Multiple Choice
Painting of a square shaped compound was actually planned for 8 days with a planned budget of $1,000. At the end of 4th day, it was found that the work was only 35% completed and already $500 has been spend. Find the CPI of the painting project?
CPI = 1.428
CPI = 1
CPI = 0.7
CPI = 0.5
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