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CAPM Cost Management

Subjects : certifications, business-skills, capm

Instructions:

Answer 26 questions in 15 minutes.
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Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.

1. What is the formula for variance at completion?
The cost budget adds management reserve to the cost baseline
BAC-EAC
A cost that varies with the amoutn of work done on the project; a cost that does not vary with the amount of work done on the project
EV/AC

2. What are key outputs of the Determine Budget process?
Estimate costs; Determine Budget; Control Costs
Cost baseline; funding requirements
A cost directly attributable to the project; overhead costs
Considering the furture cost of operating and maintaining the project or deliverable over its life when planning and managing the project

3. What are key outputs of the Estimate Costs process?
EV/PV
Activity cost estimates; Updates to the project management plan and project documents
A cost directly attributable to the project; overhead costs
EV-AC

4. What does life cycle costing mean?
A method of measuring project performance that looks at the value earned for work accomplished. It can be used to predict future cost performance and project completion dates.
Creating estimates based on the details of the projects which are then rolled up into project estimates
Considering the furture cost of operating and maintaining the project or deliverable over its life when planning and managing the project
EV-AC

5. What is earned value measurement?
Work performance measurements; budget forecasts; change requests; updatse to the project management plan and project documents
Calculating estimates using historical information
-10 percent to +25 percent from actual
A method of measuring project performance that looks at the value earned for work accomplished. It can be used to predict future cost performance and project completion dates.

6. What is parametric estimating?
Calculating estimates using historical information
A cost directly attributable to the project; overhead costs
Scope baseline; Project schedule; Human resource plan; Enterprise environmental factors; Organizational process assests; Risk register
A cost that varies with the amoutn of work done on the project; a cost that does not vary with the amount of work done on the project

7. Describe a direct cost and and indirect cost chargeable to the project
BAC-EAC
Work performance measurements; budget forecasts; change requests; updatse to the project management plan and project documents
Analogous estimationg; bottom-up estimating; parametric estimating; three-point estimates; one time estimates
A cost directly attributable to the project; overhead costs

8. In which process is the cost management plan created?
In integration management as part of the Develop Project Management Plan process
(BAC-EV)/(BAC-AC)
Considering the furture cost of operating and maintaining the project or deliverable over its life when planning and managing the project
Scope baseline; Project schedule; Human resource plan; Enterprise environmental factors; Organizational process assests; Risk register

9. What is value analysis?
(BAC-EV)/(BAC-AC)
Finding a less costly way of doing essentially the same work.
Work performance measurements; budget forecasts; change requests; updatse to the project management plan and project documents
EAC-AC

10. What is the formula for cost variance?
EV-AC
+/- 10 percent from actual
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)
(BAC-EV)/(BAC-AC)

11. What is the formula for schedule performance index?
A cost that varies with the amoutn of work done on the project; a cost that does not vary with the amount of work done on the project
EV/PV
EV/AC
Considering the furture cost of operating and maintaining the project or deliverable over its life when planning and managing the project

12. What is the difference between a cost budget and a cost baseline?
The cost budget adds management reserve to the cost baseline
Cost baseline; funding requirements
+/- 50 percent from actual
Estimate costs; Determine Budget; Control Costs

13. What is the formula for cost perfrmance index?
EV/AC
A cost directly attributable to the project; overhead costs
Calculating estimates using historical information
Finding a less costly way of doing essentially the same work.

14. What are key outputs of the Control Costs process?
Considering the furture cost of operating and maintaining the project or deliverable over its life when planning and managing the project
-10 percent to +25 percent from actual
Work performance measurements; budget forecasts; change requests; updatse to the project management plan and project documents
Analogous estimationg; bottom-up estimating; parametric estimating; three-point estimates; one time estimates

15. Describe a varable cost and a fixed cost chargeable to the project.
EAC-AC
(BAC-EV)/(BAC-AC)
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)
A cost that varies with the amoutn of work done on the project; a cost that does not vary with the amount of work done on the project

16. What is the process of cost management?
Calculating estimates using historical information
Estimate costs; Determine Budget; Control Costs
Creating estimates based on the details of the projects which are then rolled up into project estimates
EV/PV

17. What is the formula for estimate to complete?
Scope baseline; Project schedule; Human resource plan; Enterprise environmental factors; Organizational process assests; Risk register
EAC-AC
BAC-EAC
A cost that varies with the amoutn of work done on the project; a cost that does not vary with the amount of work done on the project

18. What are the main approaches to cost or schedule estimating?
-10 percent to +25 percent from actual
BAC-EAC
EV/PV
Analogous estimationg; bottom-up estimating; parametric estimating; three-point estimates; one time estimates

19. What is the range for a rough order of magnitude estimate?
-10 percent to +25 percent from actual
+/- 50 percent from actual
Calculating estimates using historical information
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)

20. What is the formula for schedule variance?
EV-PV
-10 percent to +25 percent from actual
A cost that varies with the amoutn of work done on the project; a cost that does not vary with the amount of work done on the project
BAC-EAC

21. What is the range for a definitive estimate?
Calculating estimates using historical information
-10 percent to +25 percent from actual
EV/PV
+/- 10 percent from actual

22. What are the formulas for estimate at completion?
Scope baseline; Project schedule; Human resource plan; Enterprise environmental factors; Organizational process assests; Risk register
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)
Cost baseline; funding requirements
Work performance measurements; budget forecasts; change requests; updatse to the project management plan and project documents

23. What is the range for a budget estimate?
-10 percent to +25 percent from actual
In integration management as part of the Develop Project Management Plan process
Finding a less costly way of doing essentially the same work.
The cost budget adds management reserve to the cost baseline

24. What is analogous estimating?
Scope baseline; Project schedule; Human resource plan; Enterprise environmental factors; Organizational process assests; Risk register
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)
A cost directly attributable to the project; overhead costs
Creating estimates based on the details of the projects which are then rolled up into project estimates

25. What is the formula for TCPI?
Estimate costs; Determine Budget; Control Costs
(BAC-EV)/(BAC-AC)
-10 percent to +25 percent from actual
Considering the furture cost of operating and maintaining the project or deliverable over its life when planning and managing the project

26. Name inputs to the Estimate Costs process.
EV-PV
A method of measuring project performance that looks at the value earned for work accomplished. It can be used to predict future cost performance and project completion dates.
Scope baseline; Project schedule; Human resource plan; Enterprise environmental factors; Organizational process assests; Risk register
EV/PV