Exam 7: Project Cost Management

 A cost management plan can include organizational procedures links, control thresholds, and process descriptions.

 Which statement best defines schedule variance?

 Overrun is the additional percentage amount by which estimates exceed actual costs.

 A schedule performance index of one means that the project is on schedule.

 Variances are calculated by subtracting the actual cost from which value?

 What are the three basic types of cost estimating? Describe each type.

 Which reserves allow for future situations that are unpredictable?

 _____ are revenues minus expenditures.

 The additional percentage or dollar amount by which actual costs exceed estimates is known as a(n) _____.

 Which process involves developing an approximation of the costs of resources needed to complete a project?

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

 Budgetary estimates are made even before a project is officially started.

 Which statement is true of analogous estimates?

 In an earned value chart, when the actual cost line is right on or above the earned value line, it indicates that costs are less than planned.

 The project management plan and project funding requirements are inputs of the process of controlling costs.

 What does the process of controlling costs primarily involve?

 One of the reasons why project cost estimates are inaccurate is because human beings are biased toward underestimation.

 Which is an input of the process of controlling costs?

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

 In practice, many people find that using a combination or hybrid approach involving analogous, bottom up, and/or parametric modeling provides the best _____.