Question 1

The schedule variance is the difference between the earned value and the planned value.

Accepted Answer

A) True 
 B)False

Question 2

If a project consists of activities that are common to many other projects, _____ are available per unit.

Accepted Answer

A)  fixed costs 
B)  variable costs 
C)  average costs 
D)  total costs 
E)  marginal costs 
A)  fixed costs 
B)  variable costs 
C)  average costs 
D)  total costs 
E)  marginal costs

Question 3

_____ is the budget for the entire project.

Accepted Answer

A)  Planned value 
B)  Actual cost 
C)  Earned value 
D)  Budget at completion 
E)  Estimate to complete 
A)  Planned value 
B)  Actual cost 
C)  Earned value 
D)  Budget at completion 
E)  Estimate to complete

Question 4

At the end of three months, the cost factors in A&B's healthcare project are as follows: Earned value = $17,000, Actual cost = $18,200. What is the cost variance CV) and cost performance index CPI) for the project?

Accepted Answer

A)  $+1,200; 1.07 
B)  $-1,200; 0.93 
C)  $-1,200; 1.07 
D)  $+35,200; 0.93 
E)  $+35,200; 1.07 
A)  $+1,200; 1.07 
B)  $-1,200; 0.93 
C)  $-1,200; 1.07 
D)  $+35,200; 0.93 
E)  $+35,200; 1.07

Question 5

Which of the following is true about management reserves versus contingency reserves?

Accepted Answer

A)  Contingency reserves are not likely to be spent. 
B)  Management reserves are not part of the project's budget baseline. 
C)  Management reserves are not included in the total project budget. 
D)  Management reserves are likely to be spent. 
E)  Contingency reserves are not part of the total budget for the project. 
A)  Contingency reserves are not likely to be spent. 
B)  Management reserves are not part of the project's budget baseline. 
C)  Management reserves are not included in the total project budget. 
D)  Management reserves are likely to be spent. 
E)  Contingency reserves are not part of the total budget for the project.

Question 6

Estimates that are calculated by multiplying measured parameters by cost-per-unit values are _____ estimates.

Accepted Answer

The answer of Estimates that are calculated by multiplying measured...

Question 7

The project manager prefers to keep the company's money working in other investments until the last moment before transferring it to the project account.

Accepted Answer

A) True 
 B)False

Question 8

In estimating costs to compare and select projects, which of the following is true

Accepted Answer

A)  Social factors are the most important consideration when choosing between competing projects. 
B)  The methods used to estimate the cost of the project during the selection phase are slower than those used to create detailed estimates in later phases. 
C)  The amount of time and resources used to make estimates should be appropriate primarily to the location of the project. 
D)  Estimates in the earliest stages of project selection are usually made using estimates based from previous projects. 
E)  Experienced managers can make accurate estimates only with more detailed information. 
A)  Social factors are the most important consideration when choosing between competing projects. 
B)  The methods used to estimate the cost of the project during the selection phase are slower than those used to create detailed estimates in later phases. 
C)  The amount of time and resources used to make estimates should be appropriate primarily to the location of the project. 
D)  Estimates in the earliest stages of project selection are usually made using estimates based from previous projects. 
E)  Experienced managers can make accurate estimates only with more detailed information.

Question 9

To calculate the ETC, the manager must decide if the schedule variance observed in the estimates to that point are representative of the future.

Accepted Answer

A) True 
 B)False

Question 10

If services or products will be provided by vendors, the cost of those services can be determined by issuing an RFP.

Accepted Answer

A) True 
 B)False

Question 11

Cost variance CV) is _____.

Accepted Answer

A)  earned value minus actual cost 
B)  earned value minus planned value 
C)  the ratio of earned value to planned value 
D)  the ratio of earned value to actual cost 
E)  budget at completion minus the earned value 
A)  earned value minus actual cost 
B)  earned value minus planned value 
C)  the ratio of earned value to planned value 
D)  the ratio of earned value to actual cost 
E)  budget at completion minus the earned value

Question 12

To calculate the EAC, the estimate to complete ETC) is added to the actual cost AC) of the activities already performed.

Accepted Answer

A) True 
 B)False

Question 13

_____ are measurable factors that can be used in an equation to calculate a result.

Accepted Answer

A)  Humm factors 
B)  Free floats 
C)  Attributes 
D)  RFPs 
E)  Parameters 
A)  Humm factors 
B)  Free floats 
C)  Attributes 
D)  RFPs 
E)  Parameters

Question 14

If the cost estimates by vendors are much higher than expected and if the project cannot be completed for the cost that was used to select the project, the selection decision might have to be reconsidered.

Accepted Answer

A) True 
 B)False

Question 15

Jean is managing a project in his organization. The planned value for this project is $4,500. At the end of eight weeks, he finds that his earned value is $3,500. What is the present schedule variance for the project? What does the variance signify?

Accepted Answer

A)  $-1,000; behind schedule 
B)  $+1,000; ahead of schedule 
C)  $-1,000; on schedule 
D)  $+1,000; on schedule 
E)  $+1,000; behind schedule 
A)  $-1,000; behind schedule 
B)  $+1,000; ahead of schedule 
C)  $-1,000; on schedule 
D)  $+1,000; on schedule 
E)  $+1,000; behind schedule

Question 16

Contractual agreements with vendors always require full payment of their costs during the project.

Accepted Answer

A) True 
 B)False

Question 17

Earned value management allows for partial completion of an activity if some of the detailed costs associated with the activity have been paid but others have not.

Accepted Answer

A) True 
 B)False

Question 18

Estimates in the earliest stages of project selection are usually made using estimates based from previous projects that can be _____-multiplied by an adjustment factor to make the new estimate proportional to the original.

Accepted Answer

A)  aggregated 
B)  subtotaled 
C)  scaled 
D)  predefined 
E)  rolled up 
A)  aggregated 
B)  subtotaled 
C)  scaled 
D)  predefined 
E)  rolled up

Question 19

The difference between the earned value and the actual cost is the cost performance index.

Accepted Answer

A) True 
 B)False

Question 20

During the project, the manager can evaluate the _____ using the cost variance CV) and the cost performance index CPI).

Accepted Answer

The answer of During the project, the manager can evaluate...

The schedule variance is the difference between the earned value and the planned value.

If a project consists of activities that are common to many other projects, _____ are available per unit.

_____ is the budget for the entire project.

At the end of three months, the cost factors in A&B's healthcare project are as follows: Earned value = $17,000, Actual cost = $18,200. What is the cost variance CV) and cost performance index CPI) for the project?

Which of the following is true about management reserves versus contingency reserves?

Estimates that are calculated by multiplying measured parameters by cost-per-unit values are _____ estimates.

The project manager prefers to keep the company's money working in other investments until the last moment before transferring it to the project account.

In estimating costs to compare and select projects, which of the following is true

To calculate the ETC, the manager must decide if the schedule variance observed in the estimates to that point are representative of the future.

If services or products will be provided by vendors, the cost of those services can be determined by issuing an RFP.

Cost variance CV) is _____.

To calculate the EAC, the estimate to complete ETC) is added to the actual cost AC) of the activities already performed.

_____ are measurable factors that can be used in an equation to calculate a result.

If the cost estimates by vendors are much higher than expected and if the project cannot be completed for the cost that was used to select the project, the selection decision might have to be reconsidered.

Jean is managing a project in his organization. The planned value for this project is $4,500. At the end of eight weeks, he finds that his earned value is $3,500. What is the present schedule variance for the project? What does the variance signify?

Contractual agreements with vendors always require full payment of their costs during the project.

Earned value management allows for partial completion of an activity if some of the detailed costs associated with the activity have been paid but others have not.

Estimates in the earliest stages of project selection are usually made using estimates based from previous projects that can be _____-multiplied by an adjustment factor to make the new estimate proportional to the original.

The difference between the earned value and the actual cost is the cost performance index.

During the project, the manager can evaluate the _____ using the cost variance CV) and the cost performance index CPI).

Introduction to Project Management

Project Profiling

Project Phases and Organization

Understanding and Meeting Client Expectations

Working With People on Projects

Communication Technologies

Starting a Project

Project Time Management

Managing Project Quality

Managing Project Risk

Project Procurement and Closure

Filters

Exam 9: Estimating and Managing Costs

The schedule variance is the difference between the earned value and the planned value.

If a project consists of activities that are common to many other projects, _____ are available per unit.

_____ is the budget for the entire project.

At the end of three months, the cost factors in A&B's healthcare project are as follows: Earned value = $17,000, Actual cost = $18,200. What is the cost variance CV) and cost performance index CPI) for the project?

Which of the following is true about management reserves versus contingency reserves?

Estimates that are calculated by multiplying measured parameters by cost-per-unit values are _____ estimates.

The project manager prefers to keep the company's money working in other investments until the last moment before transferring it to the project account.

In estimating costs to compare and select projects, which of the following is true

To calculate the ETC, the manager must decide if the schedule variance observed in the estimates to that point are representative of the future.

If services or products will be provided by vendors, the cost of those services can be determined by issuing an RFP.

Cost variance CV) is _____.

To calculate the EAC, the estimate to complete ETC) is added to the actual cost AC) of the activities already performed.

_____ are measurable factors that can be used in an equation to calculate a result.

If the cost estimates by vendors are much higher than expected and if the project cannot be completed for the cost that was used to select the project, the selection decision might have to be reconsidered.

Jean is managing a project in his organization. The planned value for this project is $4,500. At the end of eight weeks, he finds that his earned value is $3,500. What is the present schedule variance for the project? What does the variance signify?

Contractual agreements with vendors always require full payment of their costs during the project.

Earned value management allows for partial completion of an activity if some of the detailed costs associated with the activity have been paid but others have not.

Estimates in the earliest stages of project selection are usually made using estimates based from previous projects that can be _____-multiplied by an adjustment factor to make the new estimate proportional to the original.

The difference between the earned value and the actual cost is the cost performance index.

During the project, the manager can evaluate the _____ using the cost variance CV) and the cost performance index CPI).

Introduction to Project Management

Project Profiling

Project Phases and Organization

Understanding and Meeting Client Expectations

Working With People on Projects

Communication Technologies

Starting a Project

Project Time Management

Managing Project Quality

Managing Project Risk

Project Procurement and Closure

Filters