Quiz 5 Flashcards


Set Details Share
created 3 years ago by kvcat89
320 views
Chapter 7 - Cost
updated 3 years ago by kvcat89
show moreless
Page to share:
Embed this setcancel
COPY
code changes based on your size selection
Size:
X
Show:

1

An output of the determine budget process is the cost baseline. How is this baseline commonly displayed?

a) S-curve
b) Gantt chart
c) Pie chart
d) Bar chart

a) S-curve

2

Analogous cost estimating:

a) Integrates bottom-up estimating techniques with relevant statistical relationships to estimate the cost of the current project
b) Summarizes estimates for individual work packages to estimate the cost of the current project
c) Is used most frequently in the later phases of a project
d) Relies on the actual cost of previous, similar projects as the basis for estimating the cost of the current project

d) Relies on the actual cost of previous, similar projects as the basis for estimating the cost of the current project

3

Consider the following cumulative measure: BAC = 200, AC = 120, EV = 80, CPI = .666. Predicting that all future work will be accomplished at the budgeted rate, the estimate of what the project will cost when it is completed is:

a) 240
b) 120
c) 160
d) 200

a) 240

4

Consider the following cumulative measures: BAC = 200, AC = 120, EV = 80, CPI = .666. Predicting that what the project has experienced to date can be expected to continue in the future, the estimate of what the project will cost when it is completed is:

a) 220
b) 300
c) 320
d) 240

b) 300

5

Control costs includes all of the following EXCEPT:

a) Monitoring cost performance to isolate and understand variances from the approved cost baseline
b) Allocating the overall estimates to individual work packages to establish a cost baseline
c) Monitoring work performance against funds expended
d) Informing appropriate stakeholders of all approved changes and associated costs

b) Allocating the overall estimates to individual work packages to establish a cost baseline

6

If your earned value is equal to your actual cost, it means:

a) Cost variance is 1
b) Work so far is costing what you expected it to cost
c) Project is on budget and on schedule
d) Schedule variance index is 1

b) Work so far is costing what you expected it to cost

7

The focus of reserve analysis when estimating costs is ________ , whereas the focus of reserve analysis in determining budget is _______ .

a) Monetary reserves; management reserves
b) Contingency reserves; management reserves
c) Management reserves; contingency reserves
d) Contingency reserves; schedule reserves

b) Contingency reserves; management reserves

8

Which of the following statements regarding To-Complete Performance Index (TCPI) is true?

a) TCPI is a forecasting metric
b) TCPI is a ratio of remaining funds to remaining work
c) TCPI is a tool and technique used in performing the Determine budget process
d) A project with a TCPI value of .80 is a cause for concern

a) TCPI is a forecasting metric

9

You are a project manager currently working with a defense contractor that is experiencing unusual cost overruns because of a recent unpredicted spike in the price of crude oil. Most economists predict this high energy cost to be temporary. You also know EV = 125, CPI = .625, ETC = 475, BAC =600, PV = 250, and AC = 200. Based on this information, what is EAC?

a) 960
b) 500
c) 675
d) 100

c) 675

10

You are concerned that your project will be over budget when it is finally completed. In order to confirm or allay your fears, you use the following information to make some calculations: AC = 305, PV = 285, EV = 325, ETC = 200, and BAC = 400. Based on these figures, what do you know?

a) CPI is .94. Costs appear to be under control.
b) CPI is 1.07. Costs appear to be under control.
c) CPI is negative. You should be worried.
d) CPI is positive but less than 1.0. You should be worried.

b) CPI is 1.07. Costs appear to be under control.

11

The total project budget is $1,000. 80% of the total work should be completed as of today. Today, you see that 60% of the total work is complete. You have spent 50% of the project budget. At this point, your SPI is:

a) 1.20
b) .75
c) .83
d) 1.33

b) .75

12

You used 3-point estimating to arrive at an expected duration of 110, and you know the standard deviation of that distribution is 12. Which of the following is true?

a) There is approximately a 75% change of completing this activity in 86 to 134 days.
b) There is approximately a 95% chance of completing this activity in 98 to 122 days.
c) There is approximately a 99% chance of completing this activity in 86 to 134 days.
d) There is approximately a 68% chance of completing this activity in 98 to 122 days.

d) There is approximately a 68% chance of completing this activity in 98 to 122 days.