Question 1

The budget for each work package is

Accepted Answer

A) charged completely on the first day of the work package. 
B) charged at the end of the project. 
C) distributed over the duration of the work package. 
D) charged completely on the last day of the work package. 
A) charged completely on the first day of the work package. 
B) charged at the end of the project. 
C) distributed over the duration of the work package. 
D) charged completely on the last day of the work package. C

Question 2

The is the amount that was budgeted to accomplish the work that was scheduled to be performed up to that point in time.

Accepted Answer

A) total budgeted cost TB
C)  
B) cumulative actual cost CA
C)  
C) cumulative budgeted cost CB
C)  
D) cumulative earned value CEV) 
A) total budgeted cost TB
C)  
B) cumulative actual cost CA
C)  
C) cumulative budgeted cost CB
C)  
D) cumulative earned value CEV) C

Question 3

At the beginning of the project, it may not be possible to estimate the costs for all activities with a level of confidence regarding their accuracy.This is especially true for

Accepted Answer

A) projects with a short term. 
B) longer-term projects. 
C) projects that are similar to ones completed by the organization before. 
D) projects with activities that are serially related. 
A) projects with a short term. 
B) longer-term projects. 
C) projects that are similar to ones completed by the organization before. 
D) projects with activities that are serially related. B

Question 4

Facilities costs in the project costs estimate are for

Accepted Answer

A) general facilities for the project organization. 
B) special facilities or additional space for the project team. 
C) special facilities or additional space for the organization where other projects will be in progress. 
D) storage of materials even if not for the project. 
A) general facilities for the project organization. 
B) special facilities or additional space for the project team. 
C) special facilities or additional space for the organization where other projects will be in progress. 
D) storage of materials even if not for the project.

Question 5

A cost is determined for each period, based on when the activities that make up the work package are scheduled to be performed, to create

Accepted Answer

A) the time-phased budget. 
B) the actual costs of the project. 
C) an example budget. 
D) an adjusted budget. 
A) the time-phased budget. 
B) the actual costs of the project. 
C) an example budget. 
D) an adjusted budget.

Question 6

Travel costs in the project costs estimate are for

Accepted Answer

A) travel other than local travel) required during the project. 
B) all travel by the organization. 
C) travel costs for local meetings. 
D) travel for conferences that may not be related to the project. 
A) travel other than local travel) required during the project. 
B) all travel by the organization. 
C) travel costs for local meetings. 
D) travel for conferences that may not be related to the project.

Question 7

It's crucial that cost variances and inefficiencies be identified early so that

Accepted Answer

A) corrective action can be taken before the situation gets worse. 
B) negotiations can take place for the contract. 
C) the project can be monitored for self-correction. 
D) time is not applied to the project. 
A) corrective action can be taken before the situation gets worse. 
B) negotiations can take place for the contract. 
C) the project can be monitored for self-correction. 
D) time is not applied to the project.

Question 8

Another indicator of cost performance is cost variance CV).If the cumulative earned value is greater than the cumulative actual costs, then

Accepted Answer

A) the CV is positive. 
B) the CV is equal to the TBC. 
C) CV cannot be determined with CEV and CAC. 
D) the CV is negative. 
A) the CV is positive. 
B) the CV is equal to the TBC. 
C) CV cannot be determined with CEV and CAC. 
D) the CV is negative.

Question 9

Committed costs are also known as discharged or postponed costs.

Accepted Answer

A) True 
 B)False

Question 10

Cumulative actual cost CAC) should be calculated to compare to the cumulative budgeted cost CBC).

Accepted Answer

A) True 
 B)False

Question 11

Contingency costs in the project costs estimate, also referred to as , are to cover unexpected situations that may come up during the project, such as items that may have been overlooked when the initial project scope was defined, activities that may have to be redone because they may not work the first time redesigns), or a high probability or high impact risk that may occur.

Accepted Answer

A) auxiliary funds 
B) withholding 
C) reserves 
D) capital funds 
A) auxiliary funds 
B) withholding 
C) reserves 
D) capital funds

Question 12

The is the amount that was actually spent to accomplish the work that was scheduled to be performed up to that point in time.

Accepted Answer

A) total budgeted cost TB
C)  
B) cumulative budgeted cost CB
C)  
C) cumulative actual cost CA
C)  
D) cumulative earned value CEV) 
A) total budgeted cost TB
C)  
B) cumulative budgeted cost CB
C)  
C) cumulative actual cost CA
C)  
D) cumulative earned value CEV)

Question 13

Calculate the forecasted cost at completion if the total budgeted cost is $15,000, the cumulative actual cost is $10,000, and the cumulative earned value is $12,000.

Accepted Answer

A) FCAC = $7,000 
B) FCAC = $17,000 
C) FCAC = $13,000 
D) FCAC = $37,000 
A) FCAC = $7,000 
B) FCAC = $17,000 
C) FCAC = $13,000 
D) FCAC = $37,000

Question 14

Which of the following is not a way to reduce the costs of activities:

Accepted Answer

A) reduce the scope or requirements. 
B) substitute less expensive materials. 
C) assign a person with less expertise or less experience to perform or help with the activity. 
D) increase productivity through improved methods or technology. 
A) reduce the scope or requirements. 
B) substitute less expensive materials. 
C) assign a person with less expertise or less experience to perform or help with the activity. 
D) increase productivity through improved methods or technology.

Question 15

It is important to manage the cash flow on a project.

Accepted Answer

A) True 
 B)False

Question 16

Materials costs in the project costs estimate are the estimated costs of materials that the project team or contractor

Accepted Answer

A) want to have in supply in the office. 
B) needs even if not for this particular project. 
C) needs to purchase for the project. 
D) might want to use on the project. 
A) want to have in supply in the office. 
B) needs even if not for this particular project. 
C) needs to purchase for the project. 
D) might want to use on the project.

Question 17

Large projects would have charge codes for the work package numbers to

Accepted Answer

A) have a place for other projects to charge expenses. 
B) determine how the actual costs compare to the planned costs. 
C) have resources be able to determine what tasks they should complete. 
D) allow for cutting of the budget for the activities if need to cut the budget. 
A) have a place for other projects to charge expenses. 
B) determine how the actual costs compare to the planned costs. 
C) have resources be able to determine what tasks they should complete. 
D) allow for cutting of the budget for the activities if need to cut the budget.

Question 18

The is the product of the percent complete and the sum of the estimated costs of all the specific activities that make up a work package or the project.

Accepted Answer

A) total budgeted cost TB
C)  
B) cumulative budgeted cost CB
C)  
C) cumulative actual cost CA
C)  
D) cumulative earned value CEV) 
A) total budgeted cost TB
C)  
B) cumulative budgeted cost CB
C)  
C) cumulative actual cost CA
C)  
D) cumulative earned value CEV)

Question 19

Calculate the forecasted cost at completion if the total budgeted cost = $10,000, the CEV is $8,000, and the CAC is $4,000.

Accepted Answer

A) FCAC = $5,000 
B) FCAC = $20,000 
C) FCAC = $6,000 
D) FCAC = $4,000 
A) FCAC = $5,000 
B) FCAC = $20,000 
C) FCAC = $6,000 
D) FCAC = $4,000

Question 20

There are two approaches to establishing the total budgeted cost for each work package:

Accepted Answer

A) top-down and bottom-up. 
B) horizontal and vertical. 
C) committed and actual. 
D) aggregated and disaggregated. 
A) top-down and bottom-up. 
B) horizontal and vertical. 
C) committed and actual. 
D) aggregated and disaggregated.

The budget for each work package is

The is the amount that was budgeted to accomplish the work that was scheduled to be performed up to that point in time.

At the beginning of the project, it may not be possible to estimate the costs for all activities with a level of confidence regarding their accuracy.This is especially true for

Facilities costs in the project costs estimate are for

A cost is determined for each period, based on when the activities that make up the work package are scheduled to be performed, to create

Travel costs in the project costs estimate are for

It's crucial that cost variances and inefficiencies be identified early so that

Another indicator of cost performance is cost variance CV).If the cumulative earned value is greater than the cumulative actual costs, then

Committed costs are also known as discharged or postponed costs.

Cumulative actual cost CAC) should be calculated to compare to the cumulative budgeted cost CBC).

The is the amount that was actually spent to accomplish the work that was scheduled to be performed up to that point in time.

Calculate the forecasted cost at completion if the total budgeted cost is $15,000, the cumulative actual cost is $10,000, and the cumulative earned value is $12,000.

Which of the following is not a way to reduce the costs of activities:

It is important to manage the cash flow on a project.

Materials costs in the project costs estimate are the estimated costs of materials that the project team or contractor

Large projects would have charge codes for the work package numbers to

The is the product of the percent complete and the sum of the estimated costs of all the specific activities that make up a work package or the project.

Calculate the forecasted cost at completion if the total budgeted cost = $10,000, the CEV is $8,000, and the CAC is $4,000.

There are two approaches to establishing the total budgeted cost for each work package:

Project Management Concepts

Identifying and Selecting Projects

Developing Project Proposals

Defining Scope, Quality, Responsibility, and Activity Sequence

Developing the Schedule

Resource Utilization

Managing Risk

Closing the Project

The Project Manager

The Project Team

Project Communication and Documentation

Project Management Organizational Structures

Filters

Exam 7: Determining Costs, Budget, and Earned Value

The budget for each work package is

The is the amount that was budgeted to accomplish the work that was scheduled to be performed up to that point in time.

At the beginning of the project, it may not be possible to estimate the costs for all activities with a level of confidence regarding their accuracy.This is especially true for

Facilities costs in the project costs estimate are for

A cost is determined for each period, based on when the activities that make up the work package are scheduled to be performed, to create

Travel costs in the project costs estimate are for

It's crucial that cost variances and inefficiencies be identified early so that

Another indicator of cost performance is cost variance CV).If the cumulative earned value is greater than the cumulative actual costs, then

Committed costs are also known as discharged or postponed costs.

Cumulative actual cost CAC) should be calculated to compare to the cumulative budgeted cost CBC).

The is the amount that was actually spent to accomplish the work that was scheduled to be performed up to that point in time.

Calculate the forecasted cost at completion if the total budgeted cost is $15,000, the cumulative actual cost is $10,000, and the cumulative earned value is $12,000.

Which of the following is not a way to reduce the costs of activities:

It is important to manage the cash flow on a project.

Materials costs in the project costs estimate are the estimated costs of materials that the project team or contractor

Large projects would have charge codes for the work package numbers to

The is the product of the percent complete and the sum of the estimated costs of all the specific activities that make up a work package or the project.

Calculate the forecasted cost at completion if the total budgeted cost = $10,000, the CEV is $8,000, and the CAC is $4,000.

There are two approaches to establishing the total budgeted cost for each work package:

Project Management Concepts

Identifying and Selecting Projects

Developing Project Proposals

Defining Scope, Quality, Responsibility, and Activity Sequence

Developing the Schedule

Resource Utilization

Managing Risk

Closing the Project

The Project Manager

The Project Team

Project Communication and Documentation

Project Management Organizational Structures

Filters