Question 1

The contractor's outflow of cash can be controlled by

Accepted Answer

A)  paying a bill as soon as it is received. 
B)  delaying payment until cash is received to pay the bill. 
C)  delaying payment until it is due. 
D)  never paying bills. 
A)  paying a bill as soon as it is received. 
B)  delaying payment until cash is received to pay the bill. 
C)  delaying payment until it is due. 
D)  never paying bills.

Question 2

The key to managing cash flow is to ensure that cash comes in faster than it goes out.

Accepted Answer

A) True 
 B)False

Question 3

Based on analysis of actual cost it is possible to forecast what the total costs will be at the completion of the project or work package.

Accepted Answer

A) True 
 B)False

Question 4

Calculate the cost variance if the cumulative earned value is $10 and the cumulative actual costs are $20.

Accepted Answer

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

Question 5

The estimated cost of an activity should be

Accepted Answer

A)  padded to include contingency funds for all conceivable issue 
B)  reasonable and realistic 
C)  conservative to cover costs 
D)  optimistic and without contingency 
A)  padded to include contingency funds for all conceivable issue 
B)  reasonable and realistic 
C)  conservative to cover costs 
D)  optimistic and without contingency

Question 6

The total project cost is often estimated during the ____ phase of the project or when the project charter or a proposal is prepared

Accepted Answer

A)  initiating 
B)  planning 
C)  performing 
D)  closing 
A)  initiating 
B)  planning 
C)  performing 
D)  closing

Question 7

It is good practice to have the person who will be responsible for the costs associated with the work make the cost estimates.

Accepted Answer

A) True 
 B)False

Question 8

It may be easier to estimate the costs for ____, but as the project progresses, the project team can progressively elaborate the estimated costs as more information is known or becomes clear to allow for more accurate estimated costs.

Accepted Answer

A)  near-term activities 
B)  activities near the end of the project 
C)  new activities with new procedures 
D)  activities with long durations 
A)  near-term activities 
B)  activities near the end of the project 
C)  new activities with new procedures 
D)  activities with long durations

Question 9

Committed costs need to be treated in a special way so that the system

Accepted Answer

A)  audits the amounts assigned. 
B)  periodically assigns a portion of their total cost to actual cost. 
C)  enters the amount of the cost one time at the end of the project. 
D)  enters the amount of the cost one time at the beginning of the project. 
A)  audits the amounts assigned. 
B)  periodically assigns a portion of their total cost to actual cost. 
C)  enters the amount of the cost one time at the end of the project. 
D)  enters the amount of the cost one time at the beginning of the project.

Question 10

Determining the earned value involves collecting data on the percent complete for each work package and then converting this percentage to a dollar amount by multiplying the ____ of the work package by the percent complete.

Accepted Answer

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

Question 11

As data are collected on ____, including portions of any committed cost, they need to be totaled by work package so that they can be compared to the ____

Accepted Answer

A)  planned cost, total budgeted cost. 
B)  budgeted cost of work scheduled, actual cost of work performed. 
C)  actual cost, cumulative budgeted cost. 
D)  cumulative earned value, total budgeted cost. 
A)  planned cost, total budgeted cost. 
B)  budgeted cost of work scheduled, actual cost of work performed. 
C)  actual cost, cumulative budgeted cost. 
D)  cumulative earned value, total budgeted cost.

Question 12

The cost performance index (CPI)is a measure of the cost efficiency with which the project is being performed.If the cumulative earned value is greater than the cumulative actual costs, then

Accepted Answer

A)  the CPI is greater than 1.0. 
B)  the CPI is less than 1.0. 
C)  CPI cannot be determined with CEV and CAC. 
D)  the CPI is negative. 
A)  the CPI is greater than 1.0. 
B)  the CPI is less than 1.0. 
C)  CPI cannot be determined with CEV and CAC. 
D)  the CPI is negative.

Question 13

In many cases, there will be a tradeoff, reducing cost variances will involve a reduction in project scope or a delay in the project schedule.

Accepted Answer

A) True 
 B)False

Question 14

The first method for determining ____ assumes that the work to be performed on the remaining portion of the project or work package will be done at the same rate of efficiency as the work performed so far.

Accepted Answer

A)  forecasted cost at completion 
B)  cumulative actual cost 
C)  cumulative earned value 
D)  cost performance index 
A)  forecasted cost at completion 
B)  cumulative actual cost 
C)  cumulative earned value 
D)  cost performance index

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 17

It is important to use the ____ as the standard against which actual cost is compared.

Accepted Answer

A)  cumulative budget 
B)  total budget 
C)  budget at completion 
D)  phased budget 
A)  cumulative budget 
B)  total budget 
C)  budget at completion 
D)  phased budget

Question 18

Consider a project that involves painting five similar houses over ten weeks (one house every two weeks)for a total budgeted cost of $20,000.The budget is $4,000 per house.At of the end of week 5, you determine that $10,000 has actually been spent and three houses have been painted completely. What is the earned value of the project?

Accepted Answer

A)  $10,000 
B)  $12,000 
C)  $4,000 
D)  $20,000 
A)  $10,000 
B)  $12,000 
C)  $4,000 
D)  $20,000

Question 19

The cumulative actual costs of a project include

Accepted Answer

A)  the percentage of work expected to be completed for the time period measured. 
B)  the sum of the planned costs for the project. 
C)  the actual costs of the work performed plus the assigned portion of committed costs. 
D)  the total of all invoices paid for the time period measured. 
A)  the percentage of work expected to be completed for the time period measured. 
B)  the sum of the planned costs for the project. 
C)  the actual costs of the work performed plus the assigned portion of committed costs. 
D)  the total of all invoices paid for the time period measured.

Question 20

Equipment costs in the project costs estimate are for equipment

Accepted Answer

A)  that the organization wants to have. 
B)  that is the latest upgrade, even if not needed for the project. 
C)  that must be purchased as part of the project. 
D)  needed by others in the organization that may not be assigned to the project. 
A)  that the organization wants to have. 
B)  that is the latest upgrade, even if not needed for the project. 
C)  that must be purchased as part of the project. 
D)  needed by others in the organization that may not be assigned to the project.

The contractor's outflow of cash can be controlled by

The key to managing cash flow is to ensure that cash comes in faster than it goes out.

Based on analysis of actual cost it is possible to forecast what the total costs will be at the completion of the project or work package.

Calculate the cost variance if the cumulative earned value is $10 and the cumulative actual costs are $20.

The estimated cost of an activity should be

The total project cost is often estimated during the ____ phase of the project or when the project charter or a proposal is prepared

It is good practice to have the person who will be responsible for the costs associated with the work make the cost estimates.

It may be easier to estimate the costs for ____, but as the project progresses, the project team can progressively elaborate the estimated costs as more information is known or becomes clear to allow for more accurate estimated costs.

Committed costs need to be treated in a special way so that the system

Determining the earned value involves collecting data on the percent complete for each work package and then converting this percentage to a dollar amount by multiplying the ____ of the work package by the percent complete.

As data are collected on , including portions of any committed cost, they need to be totaled by work package so that they can be compared to the

The cost performance index (CPI)is a measure of the cost efficiency with which the project is being performed.If the cumulative earned value is greater than the cumulative actual costs, then

In many cases, there will be a tradeoff, reducing cost variances will involve a reduction in project scope or a delay in the project schedule.

The first method for determining ____ assumes that the work to be performed on the remaining portion of the project or work package will be done at the same rate of efficiency as the work performed so far.

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

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.

It is important to use the ____ as the standard against which actual cost is compared.

The cumulative actual costs of a project include

Equipment costs in the project costs estimate are for equipment

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 contractor's outflow of cash can be controlled by

The key to managing cash flow is to ensure that cash comes in faster than it goes out.

Based on analysis of actual cost it is possible to forecast what the total costs will be at the completion of the project or work package.

Calculate the cost variance if the cumulative earned value is $10 and the cumulative actual costs are $20.

The estimated cost of an activity should be

The total project cost is often estimated during the ____ phase of the project or when the project charter or a proposal is prepared

It is good practice to have the person who will be responsible for the costs associated with the work make the cost estimates.

It may be easier to estimate the costs for ____, but as the project progresses, the project team can progressively elaborate the estimated costs as more information is known or becomes clear to allow for more accurate estimated costs.

Committed costs need to be treated in a special way so that the system

Determining the earned value involves collecting data on the percent complete for each work package and then converting this percentage to a dollar amount by multiplying the ____ of the work package by the percent complete.

As data are collected on ____, including portions of any committed cost, they need to be totaled by work package so that they can be compared to the ____

The cost performance index (CPI)is a measure of the cost efficiency with which the project is being performed.If the cumulative earned value is greater than the cumulative actual costs, then

In many cases, there will be a tradeoff, reducing cost variances will involve a reduction in project scope or a delay in the project schedule.

The first method for determining ____ assumes that the work to be performed on the remaining portion of the project or work package will be done at the same rate of efficiency as the work performed so far.

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

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.

It is important to use the ____ as the standard against which actual cost is compared.

The cumulative actual costs of a project include

Equipment costs in the project costs estimate are for equipment

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

As data are collected on , including portions of any committed cost, they need to be totaled by work package so that they can be compared to the