07- Cost Management

Yusuf, a newly certified PMP, was asked by Raymond, a business analyst who will be writing project documentation, to identify the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline? What is the name of this process?

Determine budget

Estimate Costs

Control Costs

Plan Cost Management

According to the PMBOK® Guide , ES is the concept of earned schedule and ES is an extension to the theory and practice of earned value management (EVM). Earned schedule (ES) theory replaces what in the traditional EVM?

Schedule variance measures

Cost performance index

To complete performance index

Variance at completion

Jason, a project manager, is controlling costs and is performing reserve analysis on a critical project. He realizes that a number of identified risks with contingency reserves that did not occur, and it appears that they will not occur. What should Jason do with the unused contingency reserves associated with these risks?

Remove the contingency reserves from the project budget.

Leave the contingency reserves with the risks as only management can control contingency reserves.

Have the contingency reserves remain until the end of the project and taken as margin/profit if they are unused.

Use the contingency reserves for any unexpected risks that may occur during the life of the project.

Which process will utilize the following project documents as inputs; basis of estimates, cost estimates, project schedule, and the risk register?

Determine Budget

Plan Cost Management

Estimate Costs

Control Costs

In the Determine Budget process, the cost estimates are aggregated by work packages in accordance with the work breakdown structure (WBS). The work package cost estimates are then aggregated for the higher component levels of the WBS, which are known as?

Control accounts

Work package cost estimates

Planning packages

Activity cost estimates

In the Determine Budget process, what is intended to address the unknown unknowns that can affect a project?

Management reserve

Cost reserves

Risk reserves

Management special financing

For controlling costs, Justin, an experienced project manager, has been instructed to calculate the to-complete performance index (TCPI) every 2 weeks and include the TCPI in the bi-weekly senior management project report. The TCPI is a measure of the cost performance that is required to be achieved with the remaining what?

Resources

Budget at completion (BAC)

Cost variance (CV)

Actual cost (AC)

Kevin, an experienced project manager is working with the accounting department to perform the Determine Budget process. They are reviewing and discussing funding limit reconciliation. Alena from the accounting department wants to know what action might need to be taken when a variance between the funding limits for Kevin's project and the planned project expenditures occur so that Kevin 's project performance will level out to the rate of the expenditures. What is Kevin's best response to Alena?

Rescheduling of the project work.

Request for a budget adjustment.

Perform variance analysis.

Submit a change request to increase the funding limit.

When an amount of management reserves is used to fund unforeseen work, the amount of the management reserve used is?

Added to the cost baseline

Added to the funding requirements

Added to management expenditures

Added to the management control accounts

07- Cost Management

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