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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 estimate to complete?
EAC-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.
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

2. What is parametric estimating?
A cost directly attributable to the project; overhead costs
BAC-EAC
Calculating estimates using historical information
Creating estimates based on the details of the projects which are then rolled up into project estimates

3. What is value analysis?
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-EAC
Cost baseline; funding requirements
Finding a less costly way of doing essentially the same work.

4. What is the formula for schedule performance index?
Considering the furture cost of operating and maintaining the project or deliverable over its life when planning and managing the project
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.
Finding a less costly way of doing essentially the same work.
EV/PV

5. What is the formula for cost variance?
The cost budget adds management reserve to the cost baseline
EV-PV
EV-AC
+/- 10 percent from actual

6. What is analogous estimating?
Creating estimates based on the details of the projects which are then rolled up into project estimates
(BAC-EV)/(BAC-AC)
BAC-EAC
The cost budget adds management reserve to the cost baseline

7. 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 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 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.
Calculating estimates using historical information

8. What is the formula for variance at completion?
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
Work performance measurements; budget forecasts; change requests; updatse to the project management plan and project documents
The cost budget adds management reserve to the cost baseline

9. What is the process of cost management?
Estimate costs; Determine Budget; Control Costs
EV/PV
EV-AC
In integration management as part of the Develop Project Management Plan process

10. What are the main approaches to cost or schedule 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.
Calculating estimates using historical information
Analogous estimationg; bottom-up estimating; parametric estimating; three-point estimates; one time estimates
Estimate costs; Determine Budget; Control Costs

11. 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
Scope baseline; Project schedule; Human resource plan; Enterprise environmental factors; Organizational process assests; Risk register
+/- 50 percent from actual
Creating estimates based on the details of the projects which are then rolled up into project estimates

12. What is earned value measurement?
EAC-AC
EV-PV
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.

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

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

15. In which process is the cost management plan created?
EV/AC
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)
+/- 10 percent from actual
In integration management as part of the Develop Project Management Plan process

16. What is the formula for cost perfrmance index?
(BAC-EV)/(BAC-AC)
Estimate costs; Determine Budget; Control Costs
In integration management as part of the Develop Project Management Plan process
EV/AC

17. What is the range for a definitive estimate?
+/- 10 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.
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

18. What are key outputs of the Determine Budget process?
EAC-AC
Calculating estimates using historical information
Cost baseline; funding requirements
+/- 50 percent from actual

19. What are key outputs of the Estimate Costs process?
Estimate costs; Determine Budget; Control 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.
Activity cost estimates; Updates to the project management plan and project documents
EV/AC

20. Describe a varable cost and a fixed cost chargeable to the project.
EV/AC
Activity cost estimates; Updates 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-PV

21. Name inputs to the Estimate Costs process.
Estimate costs; Determine Budget; Control Costs
(BAC-EV)/(BAC-AC)
EV-AC
Scope baseline; Project schedule; Human resource plan; Enterprise environmental factors; Organizational process assests; Risk register

22. What does life cycle costing mean?
Creating estimates based on the details of the projects which are then rolled up into project estimates
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)
Considering the furture cost of operating and maintaining the project or deliverable over its life when planning and managing the project

23. What is the range for a budget estimate?
BAC-EAC
-10 percent to +25 percent from actual
EV/PV
EV-PV

24. What is the difference between a cost budget and a 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.
The cost budget adds management reserve to the cost baseline
Estimate costs; Determine Budget; Control Costs
EV-AC

25. What is the formula for schedule variance?
Analogous estimationg; bottom-up estimating; parametric estimating; three-point estimates; one time estimates
In integration management as part of the Develop Project Management Plan process
Scope baseline; Project schedule; Human resource plan; Enterprise environmental factors; Organizational process assests; Risk register
EV-PV

26. What is the formula for TCPI?
Work performance measurements; budget forecasts; change requests; updatse to the project management plan and project documents
(BAC-EV)/(BAC-AC)
+/- 50 percent from actual
Scope baseline; Project schedule; Human resource plan; Enterprise environmental factors; Organizational process assests; Risk register