Ch. 7: Questions Flashcards Preview

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Flashcards in Ch. 7: Questions Deck (20):
1

You are using a previous similar project to predict the costs of the current project. Which of the following best
describes analogous estimating?
A. Regression analysis
B. Bottom-up estimating
C. Organizational process assets
D. Enterprise environmental factors

C

2

You are the project manager for a new technology implementation project. Management has requested that
your estimates be as exact as possible. Which one of the following methods of estimating will provide the
most accurate estimate?
A. Top-down estimating
B. Top-down budgeting
C. Bottom-up estimating
D. Parametric estimating

C

3

What does the cost change control system do?
A. It defines the methods to change the cost baseline.
B. It defines the methods to create the cost baseline.
C. It evaluates changes to the project costs based on changes to the project scope.
D. This is not a valid change control system.

A

4

You have just started a project for a manufacturer. Project team members report they are 30 percent
complete with the project. You have spent $25,000 of the project's $250,000 budget. What is the earned
value for this project?
A. 10 percent
B. $75,000
C. $25,000
D. Not enough information to know

B

5

You and your project team are about to enter a meeting to determine project costs. You have elected to use
bottom-up estimating and will base your estimate on the WBS. Which one of the following is not an attribute
of bottom-up estimating?
A. People doing the work create the estimates.
B. It creates a more accurate estimate.
C. It's more expensive to do than other methods.
D. It's less expensive to do than other methods.

D

6

You are the project manager for a consulting company. Your company has two possible projects to manage,
but they can only choose one. Project WQQ is worth $217,000, while Project LB is worth $229,000.
Management elects to choose Project LB. The opportunity cost of this choice is which one of the following?
A. $12,000
B. $217,000
C. $229,000
D. Zero, as project LB is worth more than Project WQQ

B

7

You are the project manager for the CSR Training Project, and 21,000 customer service reps are invited to
attend the training session. Attendance is optional. You have calculated the costs of the training facility, but
the workbook expense depends on how many students register for the class. For every 5,000 workbooks
created, the cost is reduced by a percentage of the original printing cost. The workbook expense is an
example of which one of the following?
A. Fixed costs
B. Parametric costs
C. Variable costs
D. Indirect costs

C

8

You are the project manager of a construction project scheduled to last 24 months. You have elected to rent
a piece of equipment for the project's duration, even though you will need the equipment only periodically
throughout the project. The costs of the equipment rental per month are $890. This is an example of which of
the following?
A. Fixed costs
B. Parametric costs
C. Variable costs
D. Indirect costs

A

9

You are the project manager of the BHG Project. Your BAC is $600,000. You have spent $270,000 of your
budget. You are now 40 percent done with the project, though your plan called for you to be 45 percent done
with the work by this time. What is your CPI?
A. 10 0
B. 89
C. .89
D. .79

C

10

Management has requested that you complete a definitive cost estimate for your current project. Which one
of the following must exist in order to complete this estimate?
A. Project scope statement
B. Work breakdown structure
C. Project team
D. Expert judgment

B

11

You need to procure a highly specialized chemical for a research project. There is only one vendor available
that provides the materials you need. This scenario is an example of what market condition?
A. Constraint
B. Single source
C. Sole source
D. Oligopoly

C

12

Of the following cost estimating inputs, which one is the least reliable?
A. Team member recollections
B. Historical information
C. Project files
D. Cost estimating templates

A

13

You can purchase pea gravel for your project at $437 per metric ton. You need four tons of the pea gravel,
so you predict your costs will be $1,748. This is an example of which cost estimating approach?
A. Parametric
B. Analogous
C. Bottom-up
D. Top-down

A

14

Which one of the following is an example of resource cost rates that a project manager could use to predict
the cost of the project?
A. Analogous estimating
B. Bottom-up estimating
C. Commercial database
D. Procurement bid analysis

C

15

You have created a cost estimate for a new project that you'll be managing in your organization. All of the
following should be included in your cost estimate, except for which one?
A. Description of the schedule activity's project scope of work
B. Assumptions made
C. Constraints
D. Team members the project will utilize

D

16

Linda is the project manager of a construction project. The budget for her project is $275,000. The project
team made a mistake early in the project that cost $34,000 in added materials. Linda does not believe the
mistakes will likely happen again because the team is 30 percent complete with the project and things are
once again going smoothly. Her sponsor wants to know how much more funding Linda will likely need on the
project. What should Linda tell the sponsor?
A. $192,500
B. $241,000
C. $309,000
D. $275,000

A

17

A project had a budget of $750,000 and was completed on time. The project expenses, however, were 15
percent more than what the project called for. What is the earned value of this project?
A. It is impossible to know, as not enough information has been given.
B. $112,500
C. $637,500
D. $750,000

D

18

A project had a budget of $750,000 and was completed on time. The project expenses, however, were 15
percent more than what the project called for. What is the variance at completion for this project?
A. It is impossible to know, as not enough information has been given.
B. $112,500
C. $637,500
D. $750,000

B

19

Marty's project has a cost variance of $44,000. He needs to complete what type of report?
A. Status report
B. Exceptions report
C. Forecast report
D. Lessons learned

B

20

You are a construction manager for a construction project. The project will be using a new material that the
project team has never worked with before. You allot $10,000 to train the project team on the new materials
so that the project will operate smoothly. The $10,000 for training is known as what?
A. Cost of quality
B. Cost of poor quality
C. Sunk costs
D. Contingency allowance

A