Capitulo: 7. PROJECT COST MANAGEMENT

Question 1

What is the process of cost management?

Answer 1

Plan Cost Management
Estimate Costs
Determine Budget
Control Costs

Question 2

What is the output of the Plan Cost
Management process?

Answer 2

Cost management plan

Question 3

What are the key inputs to the Estimate
Costs process?

Answer 3

Cost management plan
Quality management plan
Scope baseline
Lessons learned register
Project schedule
Resource requirements
Risk register
Enterprise environmental factors
Organizational process assets
Project management costs

Question 4

What are the key outputs of the Estimate
Costs process?

Answer 4

Cost estimates
Basis of estimates
Updates to project documents

Question 5

What are the key outputs of the
Determine Budget process?

Answer 5

Cost baseline
Project funding requirements
Updates to project documents

Question 6

What are the key outputs of the Control
Costs process?

Answer 6

Work performance information
Cost forecasts
Change requests
Updates to project management plan
and project documents

Question 7

What does life cycle costing mean?

Answer 7

Considering costs over the entire life
of the product, not just the cost of the
project to create the product

Question 8

What is value analysis?

Answer 8

Finding a less costly way of doing
essentially the same work (also known as
value engineering)

Question 9

What three knowledge areas use the
concept of cost risk?

Answer 9

Cost
Procurement
Risk

Question 10

How do variable costs differ from fixed
costs?

Answer 10

Variable costs change with the amount
of production or amount of work done
on the project
Fixed costs do not change as production
changes

Question 11

What is a direct cost?

Answer 11

Direct cost: A cost that is directly
attributable to the work on the project

Question 12

What is an indirect cost?

Answer 12

Indirect cost: Overhead costs or costs
incurred for the benefit of more than
one project

Question 13

What is the difference between a
contingency reserve and a management
reserve?

Answer 13

Contingency reserves are used for
known risks, which are specifically
identified risks
Management reserves are used to
accommodate unknown or unidentified
risks

Question 14

What is cost of quality?

Answer 14

The cost of work added to the project to
accommodate quality efforts

Question 15

What is the difference between a cost
budget and a cost baseline?

Answer 15

The cost budget adds management
reserves to the cost baseline

Question 16

How can progress reporting help the
project manager?

Answer 16

It can help control schedule and costs
It can help the project manager assess
whether the project is on track through
earned value analysis

Question 17

What is earned value analysis, and how
is it used?

Answer 17

It is used in performance reviews to
measure project performance against the
scope, schedule, and cost baselines
Using the work performance
information gathered through earned
value analysis, a project manager can
create reports, including cost forecasts,
and other communications related to the
projects progress; it may also result in
change requests

Question 18

What combined baselines are called the
performance measurement baseline?

Answer 18

Scope, schedule, and cost baselines

Question 19

What is the difference between planned
value and earned value?

Answer 19

Planned value is the estimated value of
the work planned, as of today
Earned value is the estimated value of
the work actually accomplished, as of
today

Question 20

What is actual cost?
What is budget at completion?

Answer 20

The actual cost incurred for the work
accomplished, as of today

The projects planned budget; indicates
what the end cost of the project would
be if everything went according to plan