Question 1

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 2

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

Question 3

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.

Question 4

If you put off corrective actions until some point in the distant future, the negative cost variance may deteriorate in the project.

Accepted Answer

A) True 
 B)False

Question 5

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

Question 6

The key to effective cost control is waiting to address negative cost variances and cost inefficiencies after they are identified.

Accepted Answer

A) True 
 B)False

Question 7

It's important that the person estimating the percent complete not only assess how much work has been performed but also consider

Accepted Answer

A)  what work should have been done.
B)  what work remains to be done.
C)  what work others have to do on other projects.
D)  the cost of the work.

Question 8

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.

Question 9

When the budgets for all the work packages are summed,

Accepted Answer

A)  they should exceed the amount of funds available.
B)  they cannot exceed the total project budgeted cost.
C)  if the total is too high then the amounts should be force-fitted into the customer's budget.
D)  if the total is too low then extra non-project expenses should be added.

Question 10

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.

Question 11

Managing cash flow involves making sure that sufficient payments are received from the customer in time so that

Accepted Answer

A)  you have enough money to cover the costs of performing the project.
B)  you hold a reserve of funds instead of paying bills.
C)  payroll can be paid and suppliers are delayed indefinitely.
D)  deposits can be made in several different accounts.

Question 12

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.

Question 13

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)

Question 14

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 15

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

Question 16

involves the following: Analyzing cost performance to determine which work packages may require corrective action; Deciding what specific corrective action should be taken; and Revising the project plan, including time and cost estimates, to incorporate the planned corrective action.

Accepted Answer

A)  Resource analysis
B)  CPI monitoring
C)  Cost control
D)  Problem solving

Question 17

The is 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)

Question 18

Cost estimates should be unreasonable and excessive.

Accepted Answer

A) True 
 B)False

Question 19

The contractor might try to negotiate payment terms that require the customer to do one or more of the following except

Accepted Answer

A)  provide frequent payments, such as weekly or monthly payments rather than quarterly payments.
B)  make equal monthly payments based on the expected duration of the project.
C)  make a single payment at the end of the project.
D)  provide a down payment at the start of the project.

Question 20

The is the amount that was budgeted to accomplish the work that was schedule 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)

Exam 7: Determining Costs, Budget, and Earned Value

When the budgets for all the work packages are summed,

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The is the sum of the estimated costs of all the specific activities that make up a work package or the project.

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

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Equipment costs in the project costs estimate are for equipment

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The contractor might try to negotiate payment terms that require the customer to do one or more of the following except

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The key to effective cost control is waiting to address negative cost variances and cost inefficiencies after they are identified.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Managing cash flow involves making sure that sufficient payments are received from the customer in time so that

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

involves the following: Analyzing cost performance to determine which work packages may require corrective action; Deciding what specific corrective action should be taken; and Revising the project plan, including time and cost estimates, to incorporate the planned corrective action.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Cost estimates should be unreasonable and excessive.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

It's important that the person estimating the percent complete not only assess how much work has been performed but also consider

Correct AnswerverifiedShow Answer

If you put off corrective actions until some point in the distant future, the negative cost variance may deteriorate in the project.

Correct AnswerverifiedShow Answer

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