1.

Contingency Reserves are estimated costs to be used at the discretion of the project manager to
deal with:
a. None of the above
b. Scope creep
c. Anticipated and certain events
d. Unanticipated events
e. Anticipated events.
2. Analogous Cost Estimating is which of the following?
a. Uses statistical relationship between historical data and other variables
b. Generally accurate
c. Bottom-up estimating
d. All of the above
e. Generally less accurate
3. Funding requirements for a project are usually in incremental amounts that are not continuous,
and these appear as a step function in the graph depicting Cash flow, Cost baseline and Funding.
Any gap at the end of the project, between the funds allocated and the cost baseline represents:
a. Cost variance
b. All of the above
c. Management reserves
d. Charting error
e. Contingency reserves
4. A project manager is trying to plan for a contingency reserve as part of the cost estimates for the
project. Which of these would be an incorrect way to plan for contingency reserves?
a. None of the above
b. Start the project with a zero value for contingency reserve.
5. A project manager is performing Reserve Analysis as a technique in one of the project
management process that he is currently working on. Which of these is likely to be that process?
a. Estimate Costs
b. Plan Costs
c. None of above
d. Report Costs
e. Estimate Reserves
6. As part of the Estimate Costs process, a project manager obtained access to certain
commercially available databases to get resource cost rate information. What type of input is
such published commercial information considered as?
a. Historical information
b. HR Input
c. Organizational process asset
d. None of the above
7. What is the primary risk with including reserves or contingency allowances in your cost
estimate?
a. Tracking the funds
b. Cancelling your project
c. All of the above
d. Understating the cost estimate
e. Overstating the cost estimate
8. You are a fresh graduate and the company XYZ hired you as the project team member for their
upcoming project. Since you are a new project team member who has never managed a project
before. Right now, you are planning to develop a cost management plan of your project. For
that, you have been provided with some documents/plans. Which of the following plans you will
be most probably using to develop cost management plan.
a. Risk management plan
b. Scope management plan
c. Quality management plan
d. Communication management plan
e. None of the above
9. You are the project manager for Baby Toys, a nationwide toy store chain. Your new project
involves creating a prototype display at several stores across the country. Currently, you are
doing with the process of plan cost management. All of the following are the organizational
process assets that can influence the Plan Cost Management process EXCEPT:
a. Financial databases
b. Risk management data from previously completed projects
c. Historical information and lessons teamed repository no
d. Financial controls procedures
e. Existing formal and informal cost
f. estimating and budgeting-related policies, procedures, and guidelines no
10. Martin is the project manager of a project that is in an early phase. He needs to estimate costs
but finds that he has a limited amount of detailed information about the project. Which of the
following estimation techniques would be least suited to his requirements?
a. Bottom-up Estimating
b. Budgetary Estimating
c. Analogous Estimating
d. None of the above
e. Top-down Estimating