cost management mock exam -...

Cost Management Mock Exam

Lab for PMP Exam Prep Course Part 2

#347

Instructor: Neal L. Rowland, PMP

10 Practice Questions

Move at Your Own Pace

Question 1

You are project manager for a $2.3M project that has extended beyond its 14 month schedule. A local contracting company is brought in to speed up

production. What knowledge area does this activity belong to?

A. Project Scope Management

B. Project Cost Management

C. Project Procurement Management

Project Time Management

© 2010 Neal L. Rowland 3

Question 2

• You are working on an eight-month long project. The budget for the project is $1.5M, and you are exactly halfway through the project. An EV analysis shows the following: SPI=1.0, EV=$750,000, PV=$400,000 and AC=$650,000. What is VAC?

A. -$325,000

B. $200,000

C. $50,000

D. -$50,000


Question 3 You are a project manager for a small $40,000 project requiring a product

changeover. An activity must start at the end of the main work day (5pm). The activity takes 1 hour to complete. The next activity requires completion of the

first. When it the earliest start time of the second activity?

A. 5 pm

B. 6 pm

C. 7 pm

D. the next day


Question 4 Your project requires team members to travel to multiple destinations frequently. The

rising travel costs are eating away at your budget. At this point, you are $6,400 over budget. What is your best action?

A. Value engineer the work packages requiring travel

B. Shift budget estimates from other projects to the travel costs

C. Accept the associated costs since travel is an indirect project cost

D. Eliminate all further project travel


Question 5

• The project is requiring a part from a factory in Bangladesh. Based on the success of initial tests, the number of parts ordered may alter. The Customer is willing to pay for the amount of parts determined from the initial tests. As you estimate costs for your project, what factor must you consider?


A. The fixed cost of the factory in Bangladesh B. The variable cost of the initial test C. Neither fixed costs or variable costs are considerations

for this project D. The variable costs based on the number ordered

Question 6

• After a presentation on the status of your project, it is observed that the cost variance and schedule variance are greater than zero. What does this information indicate?


A.

• The project is under budget and behind schedule

B.

• The project is off the track

C.

• The project is over budget and behind schedule

D.

• The project is under budget and ahead of schedule

Question 7

A. SWOT and Delphi

estimating

B. GERT and top-down estimating

C. Three-point and bottom-up

estimating

D. Expert judgment and

financial expected

measurements


Which of the following are tools and/or techniques of Estimate Costs?

Question 8

• The Project Cost Baseline is an output of Determine Budget and is utilized as an input to:


A. Estimate Costs

B. Determine Budget

C. Control Costs

D. Cost Management Plan

Question 9

• Part of your project team put together a prototype of the suggested end product. Accounting questions the costs of doing this. What is your best response?


• A major stakeholder approved, so there should be no question A.

• This is a cost associated with project selection and not part of the project budget B.

• Prototyping is a legitimate project management planning expense aimed at obtaining early feedback on requirements C.

• This is a planning expense, not a project execution expense D.

Question 10 You are a project manager for a small electronics firm. You

receive cost estimates from your finance department. What is the best use for these cost estimates?

A. The estimates can used by the project team, who are the only ones able to make accurate estimates, in the Estimate Costs process

B. Use the estimates as an input to the Determine Budget process

C. Use their estimates to compare to make your estimates

D. The finance department can use the estimates to control your budget


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