Question 1

Committed costs in a project are

Accepted Answer

A)  those costs budgeted for the scheduled activities. 
B)  planned value of the project. 
C)  budgeted costs of the work scheduled. 
D)  the amounts that have been obligated or encumbered for materials, equipment, or services. 
A)  those costs budgeted for the scheduled activities. 
B)  planned value of the project. 
C)  budgeted costs of the work scheduled. 
D)  the amounts that have been obligated or encumbered for materials, equipment, or services.

Question 2

If the cumulative earned value is $10 and the cumulative actual costs are $20, then the CPI is

Accepted Answer

A)  $10. 
B)  -$10. 
C)  0.5. 
D)  2.0. 
A)  $10. 
B)  -$10. 
C)  0.5. 
D)  2.0.

Question 3

Cost estimates should be unreasonable and excessive.

Accepted Answer

A) True 
 B)False

Question 4

In many projects, large dollar amounts are expended for materials or services (subcontractors, consultants)that are used over a period of time longer than one cost reporting period.

Accepted Answer

A) True 
 B)False

Question 5

Often, the sum of the initial estimated costs is greater than the amount of funds budgeted by the sponsor.What should be done to arrive at an acceptable budget amount?

Accepted Answer

A)  Cut the cost of the highest priced activity in half until the budget is reached. 
B)  Trade experienced and efficient resources for less experienced and less efficient resources. 
C)  Revise the budget expecting that several iterations may need to be made to reduce the costs. 
D)  Extend the scope of the project. 
A)  Cut the cost of the highest priced activity in half until the budget is reached. 
B)  Trade experienced and efficient resources for less experienced and less efficient resources. 
C)  Revise the budget expecting that several iterations may need to be made to reduce the costs. 
D)  Extend the scope of the project.

Question 6

The to-complete performance index is

Accepted Answer

A)  the amount of funds remaining for the project. 
B)  the rate of performance required for the remaining work to finish the project within budget. 
C)  the ratio of committed costs remaining to planned costs. 
D)  the ratio of planned costs for the work remaining to the budgeted costs of the project. 
A)  the amount of funds remaining for the project. 
B)  the rate of performance required for the remaining work to finish the project within budget. 
C)  the ratio of committed costs remaining to planned costs. 
D)  the ratio of planned costs for the work remaining to the budgeted costs of the project.

Question 7

The actual cost on a project is

Accepted Answer

A)  the planned amount to be spent on the project plus unexpected costs 
B)  the sum of the budgeted costs. 
C)  the amount of funds expended on the project. 
D)  the total of the unexpected costs. 
A)  the planned amount to be spent on the project plus unexpected costs 
B)  the sum of the budgeted costs. 
C)  the amount of funds expended on the project. 
D)  the total of the unexpected costs.

Question 8

A second method for determining the forecasted cost at completion assumes that, regardless of the efficiency rate the project or work package has experienced in the past, the work to be performed on the remaining portion of the project or work package will be done according to budget.If the cumulative actual cost is greater than the cumulative earned value, then

Accepted Answer

A)  the FCAC is greater than the TBC. 
B)  the FCAC is less than the TBC. 
C)  the FCAC cannot be calculated with the values given. 
D)  additional information is needed to predict the FCAC. 
A)  the FCAC is greater than the TBC. 
B)  the FCAC is less than the TBC. 
C)  the FCAC cannot be calculated with the values given. 
D)  additional information is needed to predict the FCAC.

Question 9

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)

Question 10

To keep track of ____, it's necessary to set up a system to collect, on a regular and timely basis, data on funds actually expended.

Accepted Answer

A)  budgeted cost of work scheduled 
B)  planned cost of the project 
C)  actual cost on a project 
D)  budgeted cost of work performed 
A)  budgeted cost of work scheduled 
B)  planned cost of the project 
C)  actual cost on a project 
D)  budgeted cost of work performed

Question 11

Costs are ____ when an item is ordered even though actual payment may take place at some later time.

Accepted Answer

A)  discharged 
B)  committed 
C)  postponed 
D)  restrained 
A)  discharged 
B)  committed 
C)  postponed 
D)  restrained

Question 12

Allocating total project costs for the various elements to the appropriate work packages will establish

Accepted Answer

A)  the committed costs for the work package. 
B)  the anticipated expense for the work package. 
C)  how to apply resources to the work package. 
D)  a total budgeted cost (TB
C) for each work package. 
A)  the committed costs for the work package. 
B)  the anticipated expense for the work package. 
C)  how to apply resources to the work package. 
D)  a total budgeted cost (TB
C) for each work package.

Question 13

The percent complete estimate for a work package is subjective and requires an underestimated guess compared to the scope of the work package.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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.

Question 16

The cumulative earned value of the project is

Accepted Answer

A)  the sum of the planned costs of the project 
B)  the sum of the budgeted costs of the work actually performed. 
C)  the sum of the budgeted cost of the work scheduled. 
D)  the sum of the differences between what was planned and the actual costs. 
A)  the sum of the planned costs of the project 
B)  the sum of the budgeted costs of the work actually performed. 
C)  the sum of the budgeted cost of the work scheduled. 
D)  the sum of the differences between what was planned and the actual costs.

Question 17

Once a total budgeted cost has been established for each work package, the second step in the project budgeting process is to

Accepted Answer

A)  assign each TBC at the start of its work package. 
B)  assign each TBC at the end of its work package. 
C)  distribute each TBC over the project by dividing the total by the number of work packages and assigning that amount to each. 
D)  distribute each TBC over the duration of its work package. 
A)  assign each TBC at the start of its work package. 
B)  assign each TBC at the end of its work package. 
C)  distribute each TBC over the project by dividing the total by the number of work packages and assigning that amount to each. 
D)  distribute each TBC over the duration of its work package.

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

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 20

What is the cost performance index for a project that has a TBC = $50,000, a CEV = $25,000, a CAC = $20,000, and CBC = $22,000.

Accepted Answer

A)  CPI = 1.25 
B)  CPI = 0.8 
C)  CPI = 1.1 
D)  CPI = 0.91 
A)  CPI = 1.25 
B)  CPI = 0.8 
C)  CPI = 1.1 
D)  CPI = 0.91

Committed costs in a project are

If the cumulative earned value is $10 and the cumulative actual costs are $20, then the CPI is

Cost estimates should be unreasonable and excessive.

In many projects, large dollar amounts are expended for materials or services (subcontractors, consultants)that are used over a period of time longer than one cost reporting period.

Often, the sum of the initial estimated costs is greater than the amount of funds budgeted by the sponsor.What should be done to arrive at an acceptable budget amount?

The to-complete performance index is

The actual cost on a project is

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

To keep track of ____, it's necessary to set up a system to collect, on a regular and timely basis, data on funds actually expended.

Costs are ____ when an item is ordered even though actual payment may take place at some later time.

Allocating total project costs for the various elements to the appropriate work packages will establish

The percent complete estimate for a work package is subjective and requires an underestimated guess compared to the scope of the work package.

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

The budget for each work package is

The cumulative earned value of the project is

Once a total budgeted cost has been established for each work package, the second step in the project budgeting process is 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.

Facilities costs in the project costs estimate are for

What is the cost performance index for a project that has a TBC = $50,000, a CEV = $25,000, a CAC = $20,000, and CBC = $22,000.

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

Committed costs in a project are

If the cumulative earned value is $10 and the cumulative actual costs are $20, then the CPI is

Cost estimates should be unreasonable and excessive.

In many projects, large dollar amounts are expended for materials or services (subcontractors, consultants)that are used over a period of time longer than one cost reporting period.

Often, the sum of the initial estimated costs is greater than the amount of funds budgeted by the sponsor.What should be done to arrive at an acceptable budget amount?

The to-complete performance index is

The actual cost on a project is

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

To keep track of ____, it's necessary to set up a system to collect, on a regular and timely basis, data on funds actually expended.

Costs are ____ when an item is ordered even though actual payment may take place at some later time.

Allocating total project costs for the various elements to the appropriate work packages will establish

The percent complete estimate for a work package is subjective and requires an underestimated guess compared to the scope of the work package.

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

The budget for each work package is

The cumulative earned value of the project is

Once a total budgeted cost has been established for each work package, the second step in the project budgeting process is 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.

Facilities costs in the project costs estimate are for

What is the cost performance index for a project that has a TBC = $50,000, a CEV = $25,000, a CAC = $20,000, and CBC = $22,000.

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