Cost Management Test

The Cost Performance Baseline is a time-phased budget and is used as a basis to measure, monitor, and control overall cost performance of the project. It is usually displayed in the form of:

Contingency Reserves are estimated costs to be used at the discretion of the project manager to deal with:

A project is estimated to cost $50,000 with a timeline of 50 days. After 25 days, the project manager finds that 50 percent of the project is complete and actual costs are $50,000. What is the Cost Performance Index (CPI)?

Your project is midway through a delivery schedule. As the project manager, you want to determine how much work remains. Which is the most accurate way to determine the remaining work the project team must carry out?

An estimating technique that uses a statistical relationship between historical data and other variables (such as square footage in construction or lines of code in software development) is known as:

Lucy is currently preparing a high-level cost estimate for her project in the initiation phase. With the limited detail available to her, what would you expect the range of her estimate to be, and what would you call such an estimate?

Funding requirements for a project are usually in incremental amounts that are not continuous. These increments appear as a step function in the graph depicting Cash flow, Cost baseline and Funding. Any gap at the end of the project between the funds allocated and the cost baseline represents:

You are aware that cost and schedule risks are prevalent in your project. You want to compare the planned project performance with its actual performance during the Monitor Risks process. What should you perform to provide this information?

You are a senior project manager working for RETAMART, a retail shopping network that sells various consumer products. As part of the expansion plan approved by the board of directors, you are a project manager for a new plant. Due to transportation problems, the project has experienced delays; the Schedule Performance Index (SPI) is at 0.6 and the Cost Performance Index (CPI) is at 0.7. However, you expect some improvements over the next few weeks, which may increase the SPI to 1.1 and the CPI to 0.9. Which of the following statements is true if your anticipated changes materialize?

Which of these are not inputs to the Determine Budget process?