PMI PMBOK – Project Cost Management Body of knowledge - Quiz

1. In Earned Value Management, what does a Schedule Variance (SV) of zero indicate?

Project is under budget

Project is behind schedule

Project is over budget

Project is on schedule

2. Which cost estimating technique involves breaking down the project into smaller components?

Three-Point Estimating

Bottom-Up Estimating

Analogous Estimating

Parametric Estimating

3. What is the purpose of the Cost Baseline?

To serve as a reference point for measuring cost performance

To allocate resources among project tasks

To identify project risks related to costs

To track project expenses in real-time

4. Which of the following is a cost aggregation technique?

Grouping costs by work packages

Performing variance analysis

Creating a cost-benefit analysis

Monitoring resource utilization

5. What is included in contingency reserves?

Costs for addressing identified risks

Management reserve allocations

Costs for addressing unknown risks

Additional funding for resource shortages

6. What is the difference between Management Reserve and Contingency Reserve?

Management Reserve addresses unforeseen risks, while Contingency Reserve addresses identified
risks

Management Reserve is part of the Cost Baseline, while Contingency Reserve is not

Management Reserve is used for scope changes, while Contingency Reserve is used for cost overruns

Contingency Reserve is allocated by stakeholders, while Management Reserve is not

7. What is the primary output of the Determine Budget process?

Cost Baseline

Risk Register

Contingency Reserves

Project Schedule

8. Which of the following is a performance measurement baseline in Project Cost Management?

Scope Baseline

Cost Baseline

Schedule Baseline

Quality Baseline

9. What is a benefit of using Three-Point Estimating in cost management?

It eliminates the need for contingency reserves

It is simpler than other estimating techniques

It considers optimism, pessimism, and realism

It uses historical data from similar projects

10. What does a Schedule Performance Index (SPI) of less than 1.0 indicate?

Project is ahead of schedule

Project is over budget

Project is under budget

Project is behind schedule

11. Which process involves monitoring the project to ensure costs remain within the approved budget?

Control Costs

Estimate Costs

Determine Budget

Develop Project Management Plan

12. How is a performance baseline established in cost management?

By determining the contingency reserves

By negotiating contracts with vendors

By finalizing the cost estimates

By combining the scope, schedule, and cost baselines

13. What is Earned Value Management (EVM) primarily used for?

Enhancing stakeholder engagement

Tracking resource utilization

Risk identification

Assessing project performance and progress

14. Which of the following is used to forecast project costs?

Cost Baseline

Resource Histogram

Estimate at Completion (EAC)

Work Breakdown Structure (WBS)

15. Which process is primarily responsible for forecasting the remaining costs to complete a project?

Determine Budget

Control Costs

Plan Cost Management

Estimate Costs

16. Which of the following is a tool or technique for the Control Costs process?

Resource Leveling

Stakeholder Analysis

Brainstorming

Earned Value Analysis

17. Which is an example of a direct cost?

Salaries of project team members

Overhead costs for the organization

Utilities for the office building

Office supplies shared across projects

18. What is the purpose of variance analysis in cost management?

To compare actual project performance against the cost baseline

To ensure resources are utilized effectively

To eliminate risks associated with costs

To analyze future market conditions

19. Which of the following is NOT a component of Earned Value Analysis (EVA)?

Earned Value (EV)

Planned Value (PV)

Actual Cost (AC)

Quality Variance (QV)

20. What is the primary goal of Project Cost Management?

To maximize stakeholder satisfaction

To eliminate cost overruns

To minimize project costs

To ensure the project is completed within the approved budget

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