Exam 7: Project Cost Management

The _____ index is the ratio of earned value to planned value.

Good Earth, a company manufacturing packaged food products, sets up its stores in Baltonia. However, a year later, the company closes the store down due to high operating costs. In such a scenario, the money spent in paying for the rent of the store in Baltonia would be an example of _____ costs.

The cost performance index (CPI):

Spreadsheets are a common tool for cost estimating, cost budgeting, and cost control.

If the cost performance index (CPI) is less than 100 percent, the project is under budget.

Analogous estimates are called activity-based costing.

Newtech Inc. hires John for the position of a software programmer to work on their new project. Salary paid to John by Newtech Inc. would be an example of _____ costs.

Definitive estimates are made one year or less prior to project completion.

Which of the following is an output of the process of controlling costs?

Which of the following is true of earned value?

If an important supplier goes out of business, management reserves can be set aside to cover the resulting costs.

The process of controlling costs primarily involves:

_____ uses project characteristics in a mathematical model to estimate project costs.

It is important for project managers to focus on indirect costs because they can be easily controlled.

The first step in project cost management is:

_____ are those costs that are difficult to measure in monetary terms.

A(n) _____ is a time-phased budget that project managers use to measure and monitor cost performance.

IT project managers must be able to present and discuss project information both in financial and technical terms.

_____ includes the processes required to ensure that a project team completes a project within an approved budget.

The main goal of the _____ process is to produce a cost baseline for measuring project performance and project funding requirements.