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Proiect CosI Matagement

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L- Practice Questions

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INSTRUCTIONS: Note the most suitable answer for each multiple-choice
question in the appropriate space on the answer sheet.

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-- You are using earned value progress reporting for your curreni project in an
effort to teach your software developers the benefits of earned value. You plan

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l--- to display project results on lhe cafeteria bulletin board so that the leam knows
how the project is progressing. Use the cunent status, listed below/ to answer

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questions 1 through 4:

$2,200

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$2,000
---! AC $2,500
BAC : $10,000

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--L '1. Accordin8 to earned value analysis, the SV and status of the proiect
described above is-

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b.
c.
-$300; the project is ahead of schedule
+ $8,000; the project is on schedule

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-4 d.
+$200; the project is ahead of schedule
$200; the project is behind schedule

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2. What is the CPI for this proiect, and what does it tell us aboLrt cost
performance thus tar?

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b.
0.20; actual
O.Boi actual
costs
costs
are exactly as planned
have exceeded planned costs

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I--.L c. 0.80; actual costs are less than planned costs
d. 1.25; actual costs have exceeded planned costs

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I The CV

a.
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+ $300
b. $300
c. + $500
d. -$s00

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what is the EAC for this project, and what does it represent?

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b.
$12,500; the revised eslimate for total project cost (based on
performance thus far)
$10,000; the revised estimate for total project cost (based on

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c.
performance thus far)
$12,500; the original project budget

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d. $10,000;the original project budSet

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 J
Proiect Cost Management
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5. Your first task on your project is to pfepare a cost estimate You decided
to use analogous estimatinS. Which ofthe following is Dor characteristic
of analogous estimatinS?
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a.
b.
Suppods top-down estimating
ls a forn-r of expert judgn]eni
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c.
d.
Has an accuracy rate of 10% of actual costs
Involves using the cost of a previous, similar proiect as the basis for
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estimating current project cost

6. You are managing a three-year proje<1 with a $3 million budget. lf project

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requirements change, you expect additional funds to become available
toward theend ofeach fiscal year. You may use these funds for your
project. You decide to establish a cost change control system to- -l
a.
b.
Define when to add contingency funds to the proiect
Define the procedures by which the cost baseline may be chanEied
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c. Determine why a cost variance has occurred
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d. Detern]ine whether a budget update is required
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7. You rnust consider direct costs, indirect costs, overhead costs, and general
and administrative costs during cost estimating. Which of the following is
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rot an exanrple of a direct
a.
cost?

Salary of the project manager

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b. Subcontractor expenses
c. Materials used by the project
d. Electricity
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B, lfthe cost variance is the same as the schedule variance and both numbers I
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are grealer than zero, then -l

a. The cost variance is due to ihe schedule variance
b. The variance is favorable to the project
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c. The schedule variance can be easily corrected
d. Labor rates have escalated since the project began
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9. You are responsible for preparing a cost estimate for a large World Bank
a bottom-up eslimaie because your
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project. You decide io prepare
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estimate needs to be as accurate as possible. Your first step is to
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a. Locate a computerized tooL to assist in the process
b. Use the cost estimate from a previous project to help you prepare this -l
estirnate
c. Idenlify and estimate the cost for each individual work item
d. Consult with subject matter experts and use their suSSestions as the
basis for your estimate

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