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CAPM Cost Management

Subjects : certifications, business-skills, capm

Instructions:

Answer 26 questions in 15 minutes.
If you are not ready to take this test, you can study here.
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 process of cost management?
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
+/- 50 percent from actual
Estimate costs; Determine Budget; Control Costs

2. What is the range for a budget estimate?
-10 percent to +25 percent from actual
EAC-AC
Considering the furture cost of operating and maintaining the project or deliverable over its life when planning and managing the project
EV/AC

3. In which process is the cost management plan created?
In integration management as part of the Develop Project Management Plan process
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)
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

4. What are the formulas for estimate at completion?
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
Calculating estimates using historical information
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)
Cost baseline; funding requirements

5. What is the formula for estimate to complete?
EV/PV
Analogous estimationg; bottom-up estimating; parametric estimating; three-point estimates; one time estimates
EAC-AC
-10 percent to +25 percent from actual

6. What is the difference between a cost budget and a cost baseline?
Activity cost estimates; Updates to the project management plan and project documents
The cost budget adds management reserve to the cost baseline
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.
Considering the furture cost of operating and maintaining the project or deliverable over its life when planning and managing the project

7. What is the formula for TCPI?
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)
EV-PV
Analogous estimationg; bottom-up estimating; parametric estimating; three-point estimates; one time estimates
(BAC-EV)/(BAC-AC)

8. What are key outputs of the Estimate Costs process?
Activity cost estimates; Updates to the project management plan and project documents
BAC-EAC
Estimate costs; Determine Budget; Control Costs
+/- 10 percent from actual

9. What is parametric estimating?
The cost budget adds management reserve to the cost baseline
+/- 10 percent from actual
Scope baseline; Project schedule; Human resource plan; Enterprise environmental factors; Organizational process assests; Risk register
Calculating estimates using historical information

10. Describe a varable cost and a fixed cost chargeable to the project.
(BAC-EV)/(BAC-AC)
+/- 50 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
+/- 10 percent from actual

11. What is the formula for cost variance?
Scope baseline; Project schedule; Human resource plan; Enterprise environmental factors; Organizational process assests; Risk register
EV/AC
Activity cost estimates; Updates to the project management plan and project documents
EV-AC

12. What is the range for a definitive estimate?
BAC-EAC
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)
+/- 10 percent from actual
EV/PV

13. What is the formula for variance at completion?
The cost budget adds management reserve to the cost baseline
In integration management as part of the Develop Project Management Plan process
A cost directly attributable to the project; overhead costs
BAC-EAC

14. What is earned value measurement?
A cost directly attributable to the project; overhead costs
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.
EV/PV
Calculating estimates using historical information

15. Describe a direct cost and and indirect cost chargeable to the project
A cost directly attributable to the project; overhead costs
EV/PV
EV/AC
The cost budget adds management reserve to the cost baseline

16. What is the formula for cost perfrmance index?
EV/AC
Finding a less costly way of doing essentially the same work.
Estimate costs; Determine Budget; Control Costs
Work performance measurements; budget forecasts; change requests; updatse to the project management plan and project documents

17. Name inputs to the Estimate Costs process.
Creating estimates based on the details of the projects which are then rolled up into project estimates
Scope baseline; Project schedule; Human resource plan; Enterprise environmental factors; Organizational process assests; Risk register
+/- 10 percent from actual
EAC-AC

18. What is analogous estimating?
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)
A cost directly attributable to the project; overhead costs
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
Creating estimates based on the details of the projects which are then rolled up into project estimates

19. What are the main approaches to cost or schedule estimating?
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
A cost directly attributable to the project; overhead costs
BAC-EAC
Analogous estimationg; bottom-up estimating; parametric estimating; three-point estimates; one time estimates

20. What does life cycle costing mean?
Considering the furture cost of operating and maintaining the project or deliverable over its life when planning and managing the project
Activity cost estimates; Updates to the project management plan and project documents
EV/AC
Cost baseline; funding requirements

21. What is the formula for schedule variance?
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.
A cost directly attributable to the project; overhead costs
BAC-EAC
EV-PV

22. What is the formula for schedule performance index?
Cost baseline; funding requirements
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
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)

23. What are key outputs of the Control Costs process?
Work performance measurements; budget forecasts; change requests; updatse to the project management plan and project documents
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.
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)
+/- 50 percent from actual

24. What is value analysis?
EV-AC
Finding a less costly way of doing essentially the same work.
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.
(BAC-EV)/(BAC-AC)

25. What are key outputs of the Determine Budget process?
A cost directly attributable to the project; overhead costs
EV/PV
EV-PV
Cost baseline; funding requirements

26. What is the range for a rough order of magnitude estimate?
+/- 50 percent from actual
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
The cost budget adds management reserve to the cost baseline