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Your cost forecast shows that you will have a cost overrun at the end of the project. Which of the following should you do? A. Eliminate risks in estimates and reestimate B. Meet with the sponsor to find out what work can be done sooner C. Cut quality D. Decrease scope
Your project has a medium amount of risk and is not very well defined. The sponsor hands you a project charter and asks you to confirm that the project can be completed within the project cost budget. What is the BEST method to handle this? A. Build the estimate in the form of a range of possible results B. Ask the team members to help estimate the cost based on the project charter C. Based on the information you have, calculate a parametric estimate D. Provide an analogous estimate based on past history.
The seller tells you that your activities have resulted in an increase in their costs. You should A. Recommend a change to the project costs B. Have a meeting with management to find out what to do C. Ask the seller for supporting information D. Deny any wrongdoing
The cost contingency reserve should be A. Hidden to prevent management from disallowing the reserve B. Added to each activity to provide the customer with a shorter critical path C. Maintained by management to cover cost overruns D. Added to the base costs of the project to account for risks
Which of the following are ALL items included in the cost management plan? A. The level of accuracy needed for estimates, rules for measuring cost performance, specifications for how duration estimates should be stated B. Specifications for how estimates should be stated, rules for measuring cost performance, the level of accuracy needed for estimates C. Rules for measuring team performance, the level of accuracy needed for estimates, specifications for how estimates should be stated D. Specifications for how estimates should be stated, the level of risk needed for estimates, rules for measuring cost performance
Which of the following represents the estimated value of the work actually accomplished? A. Earned value (EV) B. Planned value (PV) C. Actual cost (AC) D. Cost variance (CV)
Which type of cost is team training? A. Direct B. NPV C. Indirect D. Fixed
Value analysis is performed to get A. More value from the cost analysis B. Management to buy into the project C. The team to buy into the project D. A less costly way of doing the same work
Project setup costs are an example of A. Variable costs B. Fixed costs C. Overhead costs D. Opportunity costs
During which project management process group are budget forecasts created? A. Monitoring and controlling B. Planning C. Initiating D. Executing
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