What is the primary goal of Project Cost Management?
a) To minimize project costs
b) To ensure the project is completed within the approved budget
c) To eliminate cost overruns
d) To maximize stakeholder satisfaction
Answer: b) To ensure the project is completed within the approved budget
Which process involves aggregating the estimated costs of individual activities?
a) Determine Budget
b) Estimate Costs
c) Control Costs
d) Develop Project Charter
Answer: a) Determine Budget
What is the purpose of the Cost Baseline?
a) To track project expenses in real-time
b) To allocate resources among project tasks
c) To serve as a reference point for measuring cost performance
d) To identify project risks related to costs
Answer: c) To serve as a reference point for measuring cost performance
Which of the following is NOT an input to the Estimate Costs process?
a) Project Charter
b) Scope Baseline
c) Project Schedule
d) Risk Register
Answer: a) Project Charter
What is Earned Value Management (EVM) primarily used for?
a) Risk identification
b) Assessing project performance and progress
c) Tracking resource utilization
d) Enhancing stakeholder engagement
Answer: b) Assessing project performance and progress
Which estimating technique uses historical data from similar projects?
a) Parametric Estimating
b) Analogous Estimating
c) Bottom-Up Estimating
d) Three-Point Estimating
Answer: b) Analogous Estimating
What does a Schedule Performance Index (SPI) of less than 1.0 indicate?
a) Project is ahead of schedule
b) Project is behind schedule
c) Project is under budget
d) Project is over budget
Answer: b) Project is behind schedule
What is the formula for Cost Variance (CV)?
a) EV – AC
b) AC – PV
c) PV – EV
d) EV + AC
Answer: a) EV – AC
What is included in contingency reserves?
a) Costs for addressing unknown risks
b) Costs for addressing identified risks
c) Management reserve allocations
d) Additional funding for resource shortages
Answer: b) Costs for addressing identified risks
Which document outlines how cost management will be performed?
a) Cost Management Plan
b) Project Charter
c) Risk Management Plan
d) Quality Management Plan
Answer: a) Cost Management Plan
Which process involves monitoring the project to ensure costs remain within the approved budget?
a) Estimate Costs
b) Control Costs
c) Determine Budget
d) Develop Project Management Plan
Answer: b) Control Costs
What does a Cost Performance Index (CPI) greater than 1.0 indicate?
a) The project is over budget
b) The project is under budget
c) The project is on schedule
d) The project is behind schedule
Answer: b) The project is under budget
Which of the following is a tool or technique for the Control Costs process?
a) Earned Value Analysis
b) Resource Leveling
c) Brainstorming
d) Stakeholder Analysis
Answer: a) Earned Value Analysis
What is the formula for Estimate at Completion (EAC) when future work is expected to continue at the
budgeted rate?
a) AC + (BAC – EV)
b) BAC / CPI
c) EV + PV
d) AC – CV
Answer: a) AC + (BAC – EV)
Which cost estimating technique involves breaking down the project into smaller components?
a) Analogous Estimating
b) Bottom-Up Estimating
c) Parametric Estimating
d) Three-Point Estimating
Answer: b) Bottom-Up Estimating
Which reserve is used for unforeseen work that falls within the project scope?
a) Management Reserve
b) Contingency Reserve
c) Cost Baseline Reserve
d) Risk Reserve
Answer: b) Contingency Reserve
Which of the following is NOT a component of Earned Value Analysis (EVA)?
a) Earned Value (EV)
b) Planned Value (PV)
c) Actual Cost (AC)
d) Quality Variance (QV)
Answer: d) Quality Variance (QV)
What is the formula for To-Complete Performance Index (TCPI)?
a) (BAC – EV) / (BAC – AC)
b) (BAC – AC) / EV
c) (EV + AC) / BAC
d) (EV – PV) / AC
Answer: a) (BAC – EV) / (BAC – AC)
Which of the following is a cost aggregation technique?
a) Grouping costs by work packages
b) Performing variance analysis
c) Creating a cost-benefit analysis
d) Monitoring resource utilization
Answer: a) Grouping costs by work packages
In Project Cost Management, sunk costs refer to:
a) Expenses that can be recovered
b) Costs that have already been incurred
c) Future costs of the project
d) Costs included in contingency reserves
Answer: b) Costs that have already been incurred
What is the primary output of the Determine Budget process?
a) Cost Baseline
b) Project Schedule
c) Risk Register
d) Contingency Reserves
Answer: a) Cost Baseline
Which of the following is a characteristic of parametric estimating?
a) It is based on expert judgment
b) It uses statistical relationships between variables
c) It requires detailed activity breakdowns
d) It focuses on analogous data from previous projects
Answer: b) It uses statistical relationships between variables
What is the difference between Management Reserve and Contingency Reserve?
a) Management Reserve addresses unforeseen risks, while Contingency Reserve addresses identified
risks
b) Management Reserve is used for scope changes, while Contingency Reserve is used for cost overruns
c) Management Reserve is part of the Cost Baseline, while Contingency Reserve is not
d) Contingency Reserve is allocated by stakeholders, while Management Reserve is not
Answer: a) Management Reserve addresses unforeseen risks, while Contingency Reserve addresses
identified risks
What is the result of a CPI less than 1.0?
a) Project is under budget
b) Project is over budget
c) Project is ahead of schedule
d) Project requires no adjustments
Answer: b) Project is over budget
Which of the following is used to forecast project costs?
a) Cost Baseline
b) Estimate at Completion (EAC)
c) Resource Histogram
d) Work Breakdown Structure (WBS)
Answer: b) Estimate at Completion (EAC)
What type of cost includes both fixed and variable components?
a) Sunk Cost
b) Mixed Cost
c) Direct Cost
d) Indirect Cost
Answer: b) Mixed Cost
Which is an example of a direct cost?
a) Salaries of project team members
b) Overhead costs for the organization
c) Office supplies shared across projects
d) Utilities for the office building
Answer: a) Salaries of project team members
Which tool can be used to evaluate whether project spending aligns with the budget?
a) Control Charts
b) Earned Value Analysis
c) Pareto Diagram
d) Monte Carlo Simulation
Answer: b) Earned Value Analysis
What is the purpose of variance analysis in cost management?
a) To ensure resources are utilized effectively
b) To compare actual project performance against the cost baseline
c) To eliminate risks associated with costs
d) To analyze future market conditions
Answer: b) To compare actual project performance against the cost baseline
What is the primary goal of the Estimate Costs process?
a) To control project spending
b) To develop a detailed estimate of project costs
c) To allocate resources among tasks
d) To identify risks associated with project costs
Answer: b) To develop a detailed estimate of project costs
Set -2 : 30 questions ———————
Which process is primarily responsible for forecasting the remaining costs to complete a project?
a) Estimate Costs
b) Determine Budget
c) Control Costs
d) Plan Cost Management
Answer: c) Control Costs
Which estimating technique calculates costs based on the number of units and a cost per unit?
a) Bottom-Up Estimating
b) Parametric Estimating
c) Analogous Estimating
d) Monte Carlo Simulation
Answer: b) Parametric Estimating
Which of the following is a performance measurement baseline in Project Cost Management?
a) Scope Baseline
b) Cost Baseline
c) Schedule Baseline
d) Quality Baseline
Answer: b) Cost Baseline
What is included in the Cost Management Plan?
a) Procedures for managing changes to the cost baseline
b) Project scope details
c) Contract terms and conditions
d) Stakeholder communication preferences
Answer: a) Procedures for managing changes to the cost baseline
What is the role of a Work Breakdown Structure (WBS) in cost estimation?
a) Identifies project deliverables for cost tracking
b) Specifies the project schedule
c) Highlights stakeholder requirements
d) Allocates contingency reserves
Answer: a) Identifies project deliverables for cost tracking
In Earned Value Management, what does a Schedule Variance (SV) of zero indicate?
a) Project is over budget
b) Project is behind schedule
c) Project is on schedule
d) Project is under budget
Answer: c) Project is on schedule
Which of the following is an indirect cost?
a) Salaries of on-site workers
b) Office utilities shared by multiple projects
c) Specific equipment rental for the project
d) Software licensing for the project team
Answer: b) Office utilities shared by multiple projects
How is a performance baseline established in cost management?
a) By finalizing the cost estimates
b) By combining the scope, schedule, and cost baselines
c) By determining the contingency reserves
d) By negotiating contracts with vendors
Answer: b) By combining the scope, schedule, and cost baselines
Which formula calculates the Budget at Completion (BAC)?
a) The sum of all planned project costs
b) Actual Cost (AC) / Earned Value (EV)
c) (BAC – EV) / CPI
d) Planned Value (PV) + Cost Variance (CV)
Answer: a) The sum of all planned project costs
What is a benefit of using Three-Point Estimating in cost management?
a) It uses historical data from similar projects
b) It considers optimism, pessimism, and realism
c) It eliminates the need for contingency reserves
d) It is simpler than other estimating techniques
Answer: b) It considers optimism, pessimism, and realism
What is the main purpose of a cost-benefit analysis in project management?
a) To determine the profitability of a project
b) To allocate resources among stakeholders
c) To estimate total project costs
d) To forecast future project performance
Answer: a) To determine the profitability of a project
Which metric reflects how efficiently a project is using its budget?
a) Cost Performance Index (CPI)
b) Schedule Performance Index (SPI)
c) Earned Value (EV)
d) Planned Value (PV)
Answer: a) Cost Performance Index (CPI)
What does the term “Cost of Quality” (COQ) refer to?
a) The total cost of ensuring project quality
b) Costs associated with poor project performance
c) Contingency reserves for quality assurance
d) Budget allocated for testing deliverables
Answer: a) The total cost of ensuring project quality
In cost management, which costs are typically excluded from the cost baseline?
a) Contingency reserves
b) Management reserves
c) Direct costs
d) Indirect costs
Answer: b) Management reserves
Which cost estimation technique is most accurate but time-consuming?
a) Analogous Estimating
b) Bottom-Up Estimating
c) Parametric Estimating
d) Expert Judgment
Answer: b) Bottom-Up Estimating
What is the purpose of Earned Value Analysis (EVA) in cost management?
a) To predict future project delays
b) To measure project performance against scope
c) To compare budgeted costs with actual costs
d) To measure project performance against the baseline
Answer: d) To measure project performance against the baseline
What type of cost changes as project output increases or decreases?
a) Fixed Cost
b) Variable Cost
c) Direct Cost
d) Indirect Cost
Answer: b) Variable Cost
Which tool is used to forecast final project costs?
a) Work Breakdown Structure (WBS)
b) Estimate at Completion (EAC)
c) Pareto Chart
d) Gantt Chart
Answer: b) Estimate at Completion (EAC)
Which document is most closely associated with the project budget?
a) Risk Register
b) Cost Baseline
c) Project Charter
d) Resource Management Plan
Answer: b) Cost Baseline
What is the primary focus of the Control Costs process?
a) Identifying new cost reserves
b) Ensuring that the project stays within its approved budget
c) Analyzing project risks
d) Forecasting resource needs
Answer: b) Ensuring that the project stays within its approved budget
What is the primary role of the project manager in cost management?
a) Approving contingency reserves
b) Monitoring and controlling project expenditures
c) Negotiating vendor contracts
d) Approving change requests
Answer: b) Monitoring and controlling project expenditures
What does Planned Value (PV) represent in Earned Value Management?
a) The cost of completed work
b) The budgeted cost for scheduled work
c) The actual cost incurred
d) The forecasted budget at completion
Answer: b) The budgeted cost for scheduled work
Which of the following is a fixed cost?
a) Utility bills based on usage
b) Monthly rental fees for project facilities
c) Material costs for production
d) Salaries of temporary workers
Answer: b) Monthly rental fees for project facilities
How is a cost baseline typically represented?
a) A Gantt chart
b) A time-phased budget
c) A histogram
d) A scatter plot
Answer: b) A time-phased budget
Which of the following is NOT a typical challenge in Project Cost Management?
a) Scope creep
b) Unrealistic cost estimates
c) Lack of stakeholder engagement
d) Excessive team communication
Answer: d) Excessive team communication
What is the function of cost aggregation in budgeting?
a) To summarize activity costs into work packages
b) To identify project risks related to costs
c) To evaluate resource allocation
d) To calculate management reserves
Answer: a) To summarize activity costs into work packages
What is the primary goal of variance analysis in cost management?
a) To determine project profitability
b) To assess deviations from the cost baseline
c) To identify project scope changes
d) To manage stakeholder expectations
Answer: b) To assess deviations from the cost baseline
Which cost category includes depreciation and administrative expenses?
a) Direct Costs
b) Fixed Costs
c) Indirect Costs
d) Variable Costs
Answer: c) Indirect Costs
Which process includes reallocating funds to address cost overruns?
a) Control Costs
b) Estimate Costs
c) Determine Budget
d) Plan Cost Management
Answer: a) Control Costs
What is the primary benefit of tracking the Cost Performance Index (CPI)?
a) Identifying risks associated with costs
b) Monitoring schedule adherence
c) Understanding cost efficiency
d) Forecasting team performance
Answer: c) Understanding cost efficiency
Set – 3 : 30 questions ———————-
What is the main purpose of the Plan Cost Management process?
a) To create the cost baseline
b) To establish the policies and procedures for managing costs
c) To allocate contingency reserves
d) To define the project scope
Answer: b) To establish the policies and procedures for managing costs
Which document outlines how cost variances will be managed?
a) Cost Baseline
b) Cost Management Plan
c) Risk Management Plan
d) Project Charter
Answer: b) Cost Management Plan
Which estimating technique uses historical data from similar projects?
a) Bottom-Up Estimating
b) Analogous Estimating
c) Parametric Estimating
d) Monte Carlo Simulation
Answer: b) Analogous Estimating
Which of the following is NOT an input to the Estimate Costs process?
a) Project Schedule
b) Risk Register
c) Quality Management Plan
d) Organizational Process Assets
Answer: c) Quality Management Plan
What does the formula (EV – AC) calculate in Earned Value Management?
a) Schedule Variance
b) Cost Variance
c) Budget at Completion
d) Estimate at Completion
Answer: b) Cost Variance
What does a Cost Performance Index (CPI) greater than 1 indicate?
a) The project is under budget
b) The project is over budget
c) The project is on schedule
d) The project is behind schedule
Answer: a) The project is under budget
Which of the following is included in the cost baseline?
a) Management reserves
b) Contingency reserves
c) Indirect costs
d) Work performance data
Answer: b) Contingency reserves
Which type of reserve is intended for “known-unknowns”?
a) Management reserves
b) Contingency reserves
c) Project reserves
d) Operational reserves
Answer: b) Contingency reserves
What does Earned Value (EV) represent in cost management?
a) The actual cost incurred for work completed
b) The budgeted cost of work performed
c) The total cost of the project
d) The forecasted cost of the project
Answer: b) The budgeted cost of work performed
What is a key objective of the Control Costs process?
a) Developing detailed cost estimates
b) Ensuring the project stays within its approved budget
c) Aligning project costs with stakeholder expectations
d) Increasing resource efficiency
Answer: b) Ensuring the project stays within its approved budget
Which of the following is an advantage of bottom-up estimating?
a) It provides a detailed and accurate estimate
b) It requires less time than other methods
c) It eliminates the need for contingency reserves
d) It does not rely on historical data
Answer: a) It provides a detailed and accurate estimate
What does the term “cost aggregation” mean in budgeting?
a) Grouping cost estimates by category
b) Summing lower-level costs into higher-level categories
c) Reducing overall project costs
d) Allocating reserves for project risks
Answer: b) Summing lower-level costs into higher-level categories
Which metric in Earned Value Management is used to forecast the remaining work’s cost efficiency?
a) Cost Variance (CV)
b) Cost Performance Index (CPI)
c) Schedule Variance (SV)
d) Estimate at Completion (EAC)
Answer: b) Cost Performance Index (CPI)
What is the purpose of To-Complete Performance Index (TCPI)?
a) To determine the efficiency needed to complete the project within budget
b) To calculate the total project cost
c) To track the project’s progress against the schedule
d) To identify cost overruns
Answer: a) To determine the efficiency needed to complete the project within budget
Which cost type typically includes office rent and administrative salaries?
a) Variable costs
b) Direct costs
c) Fixed costs
d) Indirect costs
Answer: d) Indirect costs
What is the primary focus of value engineering in cost management?
a) Minimizing project scope
b) Balancing cost and performance to optimize value
c) Increasing contingency reserves
d) Reducing project timelines
Answer: b) Balancing cost and performance to optimize value
Which tool is commonly used to compare the project’s actual spending to the budget?
a) Work Breakdown Structure (WBS)
b) Control Chart
c) Earned Value Analysis
d) Scatter Diagram
Answer: c) Earned Value Analysis
What does the formula BAC/CPI calculate?
a) Schedule Variance (SV)
b) Estimate at Completion (EAC)
c) Cost Variance (CV)
d) Planned Value (PV)
Answer: b) Estimate at Completion (EAC)
Which process involves allocating funds to specific project activities?
a) Determine Budget
b) Estimate Costs
c) Control Costs
d) Plan Cost Management
Answer: a) Determine Budget
Which of the following is a common cause of cost overruns?
a) Poor stakeholder communication
b) Lack of contingency reserves
c) Detailed planning
d) Regular project monitoring
Answer: b) Lack of contingency reserves
What does “Cost Variance” (CV) indicate?
a) The difference between planned and actual costs
b) The efficiency of resource usage
c) The total project budget
d) The project’s financial risks
Answer: a) The difference between planned and actual costs
Which document provides the framework for project cost control?
a) Cost Baseline
b) Project Charter
c) Resource Breakdown Structure
d) Procurement Management Plan
Answer: a) Cost Baseline
What is included in the Estimate Costs process?
a) Assessing contingency reserves
b) Analyzing cost drivers for project success
c) Determining overall project feasibility
d) Allocating costs to project milestones
Answer: b) Analyzing cost drivers for project success
What is the primary outcome of the Determine Budget process?
a) Cost Management Plan
b) Cost Baseline
c) Risk Register
d) Earned Value Metrics
Answer: b) Cost Baseline
What is the relationship between cost control and stakeholder engagement?
a) Stakeholders approve cost overruns
b) Effective engagement reduces the risk of scope and budget changes
c) Stakeholders define the cost baseline
d) Cost control does not involve stakeholders
Answer: b) Effective engagement reduces the risk of scope and budget changes
What is a common risk in using analogous cost estimating?
a) High accuracy
b) Over-reliance on historical data
c) Requirement of detailed WBS
d) Underestimating indirect costs
Answer: b) Over-reliance on historical data
What does a Cost Baseline help to measure during project execution?
a) Project team performance
b) Schedule delays
c) Cost deviations from planned values
d) Quality metrics
Answer: c) Cost deviations from planned values
Which metric calculates the ratio of EV to PV?
a) Schedule Performance Index (SPI)
b) Cost Performance Index (CPI)
c) Estimate at Completion (EAC)
d) Budget at Completion (BAC)
Answer: a) Schedule Performance Index (SPI)
What is the purpose of the cost reconciliation process?
a) Aligning actual costs with financial reports
b) Adjusting the project schedule
c) Improving team efficiency
d) Documenting stakeholder concerns
Answer: a) Aligning actual costs with financial reports
What is the best way to manage cost variances proactively?
a) Increase project reserves
b) Monitor costs regularly and adjust resources as needed
c) Conduct scope changes frequently
d) Delay reporting until milestones are reached
Answer: b) Monitor costs regularly and adjust resources as needed
Set-4 : 30 Questions ——————–
Which tool is used to predict future project performance based on current data?
a) Trend Analysis
b) Risk Analysis
c) SWOT Analysis
d) Variance Analysis
Answer: a) Trend Analysis
What is the main focus of cost forecasting?
a) Predicting project cash flow needs
b) Allocating resources to tasks
c) Determining cost variances
d) Calculating schedule delays
Answer: a) Predicting project cash flow needs
Which estimating technique involves dividing the project into smaller parts and estimating costs for
each?
a) Top-Down Estimating
b) Bottom-Up Estimating
c) Analogous Estimating
d) Parametric Estimating
Answer: b) Bottom-Up Estimating
What is the key output of the Estimate Costs process?
a) Cost Management Plan
b) Cost Baseline
c) Detailed Cost Estimates
d) Work Breakdown Structure
Answer: c) Detailed Cost Estimates
Which of the following is a characteristic of parametric estimating?
a) Relies on detailed historical data
b) Uses statistical relationships between variables
c) Provides the most accurate estimates for large projects
d) Does not require expert judgment
Answer: b) Uses statistical relationships between variables
What does the Budget at Completion (BAC) represent in cost management?
a) The estimated total project cost
b) The variance between planned and actual costs
c) The total cost incurred to date
d) The forecasted remaining cost
Answer: a) The estimated total project cost
Which of the following is a key benefit of earned value management?
a) It eliminates the need for risk assessments
b) It integrates scope, schedule, and cost performance
c) It reduces project costs automatically
d) It replaces traditional cost estimating methods
Answer: b) It integrates scope, schedule, and cost performance
What does “Estimate at Completion” (EAC) help to determine?
a) Future project profitability
b) The project’s total expected cost
c) Variance at Completion
d) The performance index for remaining work
Answer: b) The project’s total expected cost
What is the purpose of performance reviews in cost management?
a) To finalize the project scope
b) To assess cost performance and identify variances
c) To validate deliverables
d) To update the cost baseline
Answer: b) To assess cost performance and identify variances
What is a primary benefit of using historical information for cost estimating?
a) It reduces project risks
b) It improves estimate accuracy based on past data
c) It eliminates the need for expert judgment
d) It ensures schedule compliance
Answer: b) It improves estimate accuracy based on past data
What type of cost is associated with training project team members?
a) Fixed Cost
b) Variable Cost
c) Direct Cost
d) Indirect Cost
Answer: c) Direct Cost
Which project phase often requires the most accurate cost estimates?
a) Initiation
b) Planning
c) Execution
d) Closing
Answer: b) Planning
Which tool helps in determining if cost performance is within acceptable limits?
a) Control Charts
b) Variance Analysis
c) Critical Path Method
d) Resource Breakdown Structure
Answer: b) Variance Analysis
What does “To-Complete Cost Performance Index” (TCPI) calculate?
a) The efficiency required to finish within budget
b) The project’s total cost at completion
c) The amount of contingency reserves required
d) The variance in earned value
Answer: a) The efficiency required to finish within budget
What is included in the project’s contingency reserves?
a) Funds for unplanned scope changes
b) Funds for identified risks
c) Allocations for indirect costs
d) Reserves for management approvals
Answer: b) Funds for identified risks
Which cost estimating technique provides a range of potential costs?
a) Monte Carlo Simulation
b) Analogous Estimating
c) Bottom-Up Estimating
d) Expert Judgment
Answer: a) Monte Carlo Simulation
What is the purpose of periodic budget reviews during project execution?
a) To approve additional funding
b) To align actual spending with planned costs
c) To eliminate unnecessary expenses
d) To forecast revenue
Answer: b) To align actual spending with planned costs
Which input is essential for developing a project cost baseline?
a) Project Charter
b) Detailed Cost Estimates
c) Quality Management Plan
d) Stakeholder Register
Answer: b) Detailed Cost Estimates
What is the result of poor cost management practices in a project?
a) Improved stakeholder engagement
b) Scope creep and schedule delays
c) Accurate performance reporting
d) Enhanced resource allocation
Answer: b) Scope creep and schedule delays
Which Earned Value Management metric calculates project efficiency?
a) Cost Variance (CV)
b) Cost Performance Index (CPI)
c) Schedule Performance Index (SPI)
d) Estimate at Completion (EAC)
Answer: b) Cost Performance Index (CPI)
What is the importance of the cost baseline in project cost control?
a) It helps in resource allocation
b) It serves as a benchmark for measuring cost performance
c) It eliminates the need for periodic updates
d) It guarantees project profitability
Answer: b) It serves as a benchmark for measuring cost performance
Which of the following is a non-recurring cost?
a) Monthly team salaries
b) Equipment purchase
c) Office rent
d) Utility bills
Answer: b) Equipment purchase
What is the primary purpose of the Estimate Costs process?
a) To develop cost control measures
b) To approximate costs for project activities
c) To create a project charter
d) To finalize the project schedule
Answer: b) To approximate costs for project activities
What is a major consideration when using analogous cost estimating?
a) It requires detailed scope documents
b) It may lack accuracy for unique projects
c) It always results in lower cost estimates
d) It eliminates the need for historical data
Answer: b) It may lack accuracy for unique projects
Which process ensures that cost expenditures do not exceed the approved budget?
a) Estimate Costs
b) Determine Budget
c) Control Costs
d) Plan Cost Management
Answer: c) Control Costs
What type of cost is incurred regardless of project activity levels?
a) Direct Cost
b) Fixed Cost
c) Variable Cost
d) Sunk Cost
Answer: b) Fixed Cost
What does Earned Value Management integrate?
a) Scope, cost, and schedule baselines
b) Risk and quality management plans
c) Financial and operational metrics
d) Resource allocation and stakeholder engagement
Answer: a) Scope, cost, and schedule baselines
Which of the following is a key tool for monitoring cost performance?
a) Work Breakdown Structure (WBS)
b) Earned Value Analysis
c) Ishikawa Diagram
d) Pareto Chart
Answer: b) Earned Value Analysis
What is the purpose of the Estimate at Completion (EAC) calculation?
a) To forecast project completion date
b) To estimate total project costs based on current performance
c) To determine stakeholder satisfaction
d) To identify quality improvements
Answer: b) To estimate total project costs based on current performance
How does value engineering help in cost management?
a) By focusing on eliminating project risks
b) By optimizing cost and functionality without reducing value
c) By eliminating contingency reserves
d) By ensuring faster project delivery
Answer: b) By optimizing cost and functionality without reducing value