Mauro Sotille – Respostas Custos

PROJECT COST MANAGEMENT

1. If variable costs equal $200 per unit and all fixed costs equal $1,600, what will be the
cost of producing ten extra units?

a. $3,600.
b. $ 400.
c. $16,000.
d. $ 2,000.

2. The life cycle cost of a system is the  expense of acquiring, owning, and
operating a system for its life.

a. average
b. total
c. fixed
d. variable

3. Management reserve funds are intended to be used to:

a. cover bad cost estimates

b. fund work not yet authorized
c. fund unforeseen problems (PMBOK p.120, 11.3.3)
d. increase the fee on a fixed price contract

4. Rearranging resources so that constant resource levels are maintained, rather fluctuating
resource levels, is called :

a. Leveling (PMBOK p.68 & 70, 6.4.2 & 6.4.3)

b. crashing
c. compromising
d. floating

1
 Mauro Sotille – Respostas Custos

5. If a project manager can either rent or lease a piece of equipment under the following
conditions, how many days a year would it have to be used so that the choices are
equal?

Renting Leasing
Maintenance costs $0 $3,200 per year
Operations costs $0 $ 80 per day
Rental costs $160 per day $ 0

a. 35 days
b. 40 days
c. 45 days
d. 50 days

6. Double declining balance is a form of …………… depreciation.

a. uniform
b. accelerated
c. decelerated
d. straight line

7. The project cost estimates are of greatest interest to the contractor’s project manager
when performing ……………….. contracts.

a. cost plus fixed fee

b. fixed price (PMBOK p.126)
c. cost plus percentage fee
d. cost plus incentive fee

8. In the eighth month of a twelve-month project, Project Z was budgeted to expend

$80,000. It actually expended $84,000. What is Project Z’s status?

a. it is in trouble, since more was spent than was budgeted

b. there is insufficient information to determine status
c. budget slippage is reflecting schedule slippage
d. the project is on target

9. The — of a project provides a basis for the time-phased plan for using funds, a
plan against which expenditures will subsequently be measured.

a. work breakdown structure

b. master schedule
c. project summary
d. budget

2
 Mauro Sotille – Respostas Custos

10. To transfer most of the cost risk to the contractor, the client may use a  contract.

a. cost plus incentive fee

b. cost plus fixed fee
c. fixed price
d. time and materials

11. Experience shows that each time you double the production of widgets, unit cost
decrease by ten percent. Based on this information, Projectmatic Inc. Determines that a
production of 3,000 widgets should cost them $21,000. This case illustrates :

a. learning curve effects

b. the law of diminishing returns
c. the eighty-twenty rule
d. parametric cost estimating (PMBOK p.77 7.2.2)

12. Present value is :

a. the total value of assets an organization possesses at given moment

b. today’s budget
c. the value today of future cash flows
d. today’s budget, less contingency allowances

13. Sunk cost are :

a. funds lost in a high risk venture

b. actual costs that exceed target costs
c. target costs that exceed actual costs
d. expended costs.

14. If EV = 350, AC = 400, and PV = 325 , what is the cost performance index?

a. 0.875
b. 1.078
c. 1.143
d. 1.125

15. A benefit-cost ratio of 3.22 indicates a :

a. unit profit of $3.22

b. gross profit of $3.22
c. project that should be selected
d. gross payback of $3.22 for each dollar expended

3
 Mauro Sotille – Respostas Custos

16. Bottom-up estimating entails:

a. modeling the project with cost equations

b. entering cost estimates into WBS work packages and then aggregating them
(PMBOK p.77 7.2.2.)
c. looking at the after-tax consequences of costs
d. assigning profit and loss responsibilities to functional managers

17. A cost account is :

a. the dollar value assigned to an item

b. an accountant
c. the lowest level of the WBS at which organizational responsibilities are
assigned
d. a summary of project costs at the phase level.

18. Payback period analysis identifies :

a. that point in time when monthly revenue exceeds monthly costs

b. that point in time when cumulative revenue exceeds cumulative costs
c. the current value of future cash flows
d. the ratios of discounted benefits

19. The ETC represents—

a. Project costs to date
b. Project costs remaining
c. Actual costs for remaining work
d. Estimated costs for time completed

20. Which of the following is an input to cost control?

a. Lessons learned
b. The WBS
c. Computerized tools
d. Change requests