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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.
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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 are key outputs of the Estimate Costs process?
Activity cost estimates; Updates to the project management plan and project documents
EV/PV
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

2. Name inputs to the Estimate Costs process.
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
BAC-EAC
-10 percent to +25 percent from actual

3. What is parametric estimating?
Calculating estimates using historical information
EV/AC
The cost budget adds management reserve to the cost baseline
A cost directly attributable to the project; overhead costs

4. What is analogous estimating?
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.
Activity cost estimates; Updates to the project management plan and project documents
Creating estimates based on the details of the projects which are then rolled up into project estimates
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

5. What is the formula for TCPI?
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
Considering the furture cost of operating and maintaining the project or deliverable over its life when planning and managing the project
EV/AC
(BAC-EV)/(BAC-AC)

6. What is earned value measurement?
In integration management as part of the Develop Project Management Plan process
Analogous estimationg; bottom-up estimating; parametric estimating; three-point estimates; one time estimates
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.

7. Describe a varable cost and a fixed cost chargeable to the project.
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
Estimate costs; Determine Budget; Control Costs
Scope baseline; Project schedule; Human resource plan; Enterprise environmental factors; Organizational process assests; Risk register

8. What is the range for a definitive estimate?
+/- 10 percent from actual
EV-PV
Analogous estimationg; bottom-up estimating; parametric estimating; three-point estimates; one time estimates
EV/AC

9. What is the process of cost management?
EV/PV
-10 percent to +25 percent from actual
Estimate costs; Determine Budget; Control Costs
Work performance measurements; budget forecasts; change requests; updatse to the project management plan and project documents

10. What is the difference between a cost budget and a cost baseline?
EV-PV
The cost budget adds management reserve to the cost baseline
Analogous estimationg; bottom-up estimating; parametric estimating; three-point estimates; one time estimates
+/- 50 percent from actual

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

12. What is value analysis?
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
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)
The cost budget adds management reserve to the cost baseline

13. What is the formula for cost perfrmance index?
Work performance measurements; budget forecasts; change requests; updatse to the project management plan and project documents
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
A cost directly attributable to the project; overhead costs

14. What are key outputs of the Control Costs process?
+/- 10 percent from actual
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
Estimate costs; Determine Budget; Control Costs

15. What are key outputs of the Determine Budget process?
Work performance measurements; budget forecasts; change requests; updatse to the project management plan and project documents
+/- 10 percent from actual
Cost baseline; funding requirements
Activity cost estimates; Updates to the project management plan and project documents

16. What is the range for a rough order of magnitude estimate?
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
+/- 50 percent from actual
(BAC-EV)/(BAC-AC)
Cost baseline; funding requirements

17. In which process is the cost management plan created?
In integration management as part of the Develop Project Management Plan process
Calculating estimates using historical information
EV-AC
(BAC-EV)/(BAC-AC)

18. 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.
Estimate costs; Determine Budget; Control Costs
Considering the furture cost of operating and maintaining the project or deliverable over its life when planning and managing the project
+/- 10 percent from actual

19. What is the formula for schedule performance index?
EV-PV
Work performance measurements; budget forecasts; change requests; updatse to the project management plan and project documents
EV/PV
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

20. What is the formula for estimate to complete?
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)
EV/PV
Finding a less costly way of doing essentially the same work.
EAC-AC

21. What is the formula for cost variance?
Cost baseline; funding requirements
BAC-EAC
EV-AC
+/- 50 percent from actual

22. What are the main approaches to cost or schedule estimating?
Analogous estimationg; bottom-up estimating; parametric estimating; three-point estimates; one time estimates
EV/PV
EV-PV
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

23. What is the formula for variance at completion?
In integration management as part of the Develop Project Management Plan process
EV-PV
(BAC-EV)/(BAC-AC)
BAC-EAC

24. Describe a direct cost and and indirect cost chargeable to the project
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
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)
Analogous estimationg; bottom-up estimating; parametric estimating; three-point estimates; one time estimates

25. What are the formulas for estimate at completion?
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.
EAC-AC
Work performance measurements; budget forecasts; change requests; updatse to the project management plan and project documents

26. What is the formula for schedule variance?
EV-PV
In integration management as part of the Develop Project Management Plan process
EV/AC
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.