Quiz # 2 - PCFM | Take the Quiz

Create an inspiring illustration of a project manager analyzing budgets and financial data, surrounded by graphs, charts, and project plans, in a modern office setting.

Project Cost Management Fundamentals Quiz

Test your knowledge on Project Cost Management (PCM) with this engaging quiz! Designed for students, professionals, and project managers, this quiz will challenge you with questions covering key concepts such as cost estimation, earned value management, and budgeting strategies.

Whether you're looking to prepare for a certification, enhance your understanding of project finance, or simply refresh your skills, this quiz is a great way to gauge your expertise.

11 thought-provoking questions
Multiple choice format for easy responses
Check your understanding of key PCM principles

11 Questions3 MinutesCreated by CalculatingSage752

All of the following are true in context of “Funding Limit Reconciliation”, EXCEPT:

Expenditure of funds should be reconciled with any periodic funding limits

Difference between funding limits & planned expenditures may need rescheduling of work

Funding Limit Reconciliation is done during Plan Cost Management process

Funding Limit Reconciliation is done during Determine Budget process

You are managing a software development project. The project is expected to be completed in 8 months at a cost of $10,000 per month. After 4 months, you realize that the project is 60% completed at a cost of $45,000. Which of the following indicates that how efficiently you are using your time?

Schedule Variance (SV)

Cost Variance (CV)

Schedule Performance Index (SPI)

Cost Performance Index (CPI)

Which of the following is true about definitive estimate as compared to the analogous and parametric estimates?

A definitive estimate is the most expensive, the most accurate but the least time taking

A definitive estimate is the most expensive, the most time taking and the most accurate

A definitive estimate is the least expensive, the least time taking but is the most accurate

A definitive estimate is the least expensive, the least time taking and the least accurate

You are working on a house-construction project as a project manager. You and your planning team have identified all the project activities and also estimated the activities’ duration & resource requirements. Currently, you are busy in the approximation of the costs of resources needed to complete the project activities. Which of the four cost management processes you and your team are in?

Plan Cost Management

Estimate Costs

Define Budget (i.e. Aggregating costs)

Funding Limits Reconciliation

As part of the EVM, the variance analysis of your project yielded a CPI of 1.2. Which of the best describes this CPI?

1 dollar & 20 cents (i.e. $1.2) worth of work was actually completed for each one dollar spent

The project is going over budget

The project is going ahead of schedule

The project is going behind the schedule

A cost estimate that considers the highest possible amount an activity might require is called as:

An Optimistic Estimate

A Most Likely Estimate

A Pessimistic Estimate

A Single Point Estimate

Your planning team has provided you with three estimates to complete a project activity. These estimates are: Rs. 9,000, Rs. 6,000 & Rs, 11,000. The expected cost using the Beta Distribution would be:

Rs. 4333.33

Rs. 8,666.67

Rs. 7333.33

Rs. 8833.33

All of the following are true about Management Reserves (MR), EXCEPT:

You need special approval (through a formal change request) to obtain and use MR

MR are not part of the Cost Baseline

MR are not included in the project funding requirements

MR are included in the Project Budget

During the earned value analysis, you found that the CPI of your project is 1.1. You are not sure whether a corrective action is needed with this CPI or not and thus consult your Cost Management Plan. The plan shows a threshold limit of +/- 5%. Will you take a corrective action after seeing this threshold limit in the plan?

No, as my project is going under budget, which is a good thing

No, because the variance is within threshold limits

Yes, because the variance is outside the threshold limits

Yes, because my project is going over budget

All of the following are true about analogous estimating, EXCEPT:

It is generally used during later stages in the project as more information becomes available

Its accuracy is in the Rough Order of Magnitude (ROM)

It is less costly and less time taking

It is generally used during project initiating as less information is available at that time

Quiz # 2 - PCFM

Project Cost Management Fundamentals Quiz

More Quizzes