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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 the formulas for estimate at completion?
EAC-AC
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)
EV/PV
+/- 50 percent from actual

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

3. What is the range for a definitive 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
+/- 10 percent from actual
Work performance measurements; budget forecasts; change requests; updatse to the project management plan and project documents
EV-PV

4. In which process is the cost management plan created?
Activity cost estimates; Updates to the project management plan and project documents
In integration management as part of the Develop Project Management Plan process
Creating estimates based on the details of the projects which are then rolled up into project estimates
+/- 50 percent from actual

5. Describe a direct cost and and indirect cost chargeable to the project
A cost directly attributable to the project; overhead costs
In integration management as part of the Develop Project Management Plan process
BAC-EAC
EAC-AC

6. What is the formula for TCPI?
Considering the furture cost of operating and maintaining the project or deliverable over its life when planning and managing the project
BAC-EAC
(BAC-EV)/(BAC-AC)
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
+/- 50 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.

8. 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
+/- 10 percent from actual
EV/PV
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)

9. What is the formula for estimate to complete?
Cost baseline; funding requirements
Creating estimates based on the details of the projects which are then rolled up into project estimates
EAC-AC
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)

10. What is the process of cost management?
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
(BAC-EV)/(BAC-AC)
Work performance measurements; budget forecasts; change requests; updatse to the project management plan and project documents

11. What are key outputs of the Determine Budget process?
-10 percent to +25 percent from actual
Cost baseline; funding requirements
Calculating estimates using historical information
EAC-AC

12. What is the formula for variance at completion?
+/- 50 percent from actual
BAC-EAC
Analogous estimationg; bottom-up estimating; parametric estimating; three-point estimates; one time estimates
AC + Bottom-up ETC - BAC/CPI - AC + (BAC-EV) - AC + (BAC - EV) / (CPI x SPI)

13. What is the formula for cost perfrmance index?
EV/AC
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
-10 percent to +25 percent from actual

14. What is earned value measurement?
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.
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
Cost baseline; funding requirements

15. Describe a varable cost and a fixed cost chargeable to the project.
Analogous estimationg; bottom-up estimating; parametric estimating; three-point estimates; one time estimates
EV/AC
-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

16. What are key outputs of the Estimate Costs process?
Activity cost estimates; Updates to the project management plan and project documents
EV/PV
EAC-AC
-10 percent to +25 percent from actual

17. What is value analysis?
Cost baseline; funding requirements
EV/AC
Activity cost estimates; Updates to the project management plan and project documents
Finding a less costly way of doing essentially the same work.

18. What is the difference between a cost budget and a cost baseline?
The cost budget adds management reserve to the cost baseline
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.
Calculating estimates using historical information

19. What are the main approaches to cost or schedule estimating?
A cost directly attributable to the project; overhead costs
Estimate costs; Determine Budget; Control Costs
+/- 10 percent from actual
Analogous estimationg; bottom-up estimating; parametric estimating; three-point estimates; one time estimates

20. What is the formula for cost variance?
EV-AC
+/- 50 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.
Analogous estimationg; bottom-up estimating; parametric estimating; three-point estimates; one time estimates

21. What is parametric estimating?
A cost directly attributable to the project; overhead costs
Calculating estimates using historical information
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

22. What is the range for a rough order of magnitude estimate?
+/- 10 percent from actual
Calculating estimates using historical information
Cost baseline; funding requirements
+/- 50 percent from actual

23. What is the formula for schedule variance?
The cost budget adds management reserve to the cost baseline
Calculating estimates using historical information
EV-PV
EAC-AC

24. What is analogous estimating?
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
EAC-AC
Work performance measurements; budget forecasts; change requests; updatse to the project management plan and project documents

25. What is the range for a budget estimate?
-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
EV/PV
Creating estimates based on the details of the projects which are then rolled up into project estimates

26. What does life cycle costing mean?
Analogous estimationg; bottom-up estimating; parametric estimating; three-point estimates; one time estimates
Considering the furture cost of operating and maintaining the project or deliverable over its life when planning and managing the project
EV-PV
Activity cost estimates; Updates to the project management plan and project documents