Quick Quiz - Cost

Quick Quizzes are a great way to assess how much you learned during the PMP Boot Camp. They aren't called "Quick" because they are short or take a small amount of time, but rather because you should be able to answer each question quickly. You probably won't see many questions like this on the PMP exam, but it is a good way to solidify the base knowledge upon which you must draw to answer PMP situational, behavioral questions. This Quick Quiz will help you obtain the 1st of the 3 keys to passing the PMP Exam: An in-depth understanding of the PMBOK. 

Quick Quizzes are timed based on an average of 72 seconds per question.

If you cannot answer all of these questions correctly, go back and study the student guides, read the PMBOK, and prepare questions to ask your instructor during the next class session.

To obtain an in-depth understanding of the PMBOK

What is the difference between the Cost Baseline and the Budget at Completion?

BAC is the overall expected cost while Cost Baseline is the time-phased spending plan

  • BAC is the original cost and Cost Baseline is the final cost
  • BAC is the overall expected cost while Cost Baseline is the time-phased spending plan
  • The terms are synonymous
  • Cost Baseline is the controlled version of the budget while BAC is just used for EVM calculations

Which of the following would not be included in the Cost Management Plan?

Basis of Estimates

  • Basis of Estimates
  • Units of measure
  • Rules of performance measurement
  • Organizational procedural links

Which would be the most accurate tool to estimate costs?

Bottom-Up Estimating

  • Expert Judgement
  • Analagous Estimating
  • 3-Point Estimating
  • Bottom-Up Estimating

Cost of Quality includes which of the following?

Cost of conformance and non-conformance

  • Cost of collecting requirements and developing quality metrics
  • Cost of hiring expert team members and training them
  • Cost of conformance and non-conformance
  • Cost of estimating errors and rework

Which estimating tool produces a range of cost estimates?

3-Point Estimating

  • Parametric Estimating
  • Analagous Estimating
  • 3-Point Estimating
  • Reserve Analysis

Why is the HR Management Plan an input to Estimate Costs?

It contains specific salary projections of planned team members

  • It contains specific salary projections of planned team members
  • To identify which team members will help establish cost estimates
  • It is not an input to Estimate Costs
  • To help facilitate Vendor Bid Analysis

Which of the following are outputs of Estimate Costs?

Basis of Estimates and Activity Cost Estimates

  • Work Package Cost Estimates
  • Basis of Estimates and Activity Cost Estimates
  • Contingency and Management Reserves
  • EEF and Parametric Estimates

What is the correct sequence?

Define Activities, Estimate Costs, Determine Budget

  • Create WBS, Estimate Costs, Estimate Activity Durations
  • Estimate Costs, Create WBS, Estimate Activity Resources
  • Define Activities, Estimate Costs, Determine Budget
  • Estimate Costs, Aggregate Budget, Determine Cost Baseline

What document shows the detail of how you estimated activity costs?

Basis of Estimates

  • Activity Cost Estimates
  • Parametric Cost Tables
  • Cost Baseline
  • Basis of Estimates

Which is true of Reserve Analysis?

Contingency Reserve is for known-unknowns and under control of the PM

  • Contingency Reserve is for known-unknowns and under control of the PM
  • Management Reserve is for known-unknowns and the Contingency Reserve is included in the Cost Baseline
  • Contingency Reserve is a calculated amount and Management Reserve is included in the Cost Baseline
  • Management Reserve is under senior management control and is calculated by multiplying probability times impact

What is the correct term for costs that change with the amount of production of work?

Variable

  • Fixed
  • Direct
  • Variable
  • Sunk

What is term for accomplishing the same thing with less cost or decreasing cost without decreasing scope?

Value Engineering

  • Value Engineering
  • Life Cycle Costing
  • Lean Planning
  • Value Planning

Which type of cost is not relevant in decisions to continue a troubled project?

Sunk Costs

  • Indirect costs
  • Life Cycle Costs
  • Sunk Costs
  • Estimate to Complete costs

Which estimate is given earliest in the project?

Rough Order of Magnitude Estimate

  • Life Cycle Cost Estimate
  • Rough Order of Magnitude Estimate
  • Budget Estimate
  • Initiating Estimate

What is the range of a Definitive Estimate?

-5% to 10%

  • -5% to 10%
  • -10% to 25%
  • $100,000-$125,000
  • 25% to -75%

Which is not an input to Determine Budget?

Aggregated Costs

  • Scope Baseline
  • Activity Cost Estimates
  • Aggregated Costs
  • Risk Register

In what process is the Cost Baseline determined?

Determine Budget

  • Plan Cost Management
  • Determine Budget
  • Develop Cost Baseline
  • Estimate Costs

What is the term for the periodic payments to the project which must be made by the sponsor to meet the Cost Baseline requirements?

Project Funding Requirements

  • Cost Aggregation
  • Funding Limit Reconciliation
  • Project Funding Requirements
  • Contingency Reserve

Which is not a tool used in Determine Budget?

Basis of Estimates

  • Historical Relationships
  • Funding Limit Reconciliation
  • Reserve Analysis
  • Basis of Estimates

Which input to Determine Budget would provide the project funding constraints such as the maximum allowable cost of the project and the sponsor's cash flow capability?

Scope Baseline

  • Basis of Estimates
  • Scope Baseline
  • Risk Register
  • Agreements

Which of the following is not included in the Cost Baseline?

Management Reserve Costs

  • Activity Costs
  • Work Package Costs
  • Control Account Costs
  • Management Reserve Costs

What is the term for adding up all costs from the activity level to the work package level to the control account level and up the the project level on the WBS?

Cost Aggregation

  • Life Cycle Costing
  • Funding Limit Reconciliation
  • Reserve Analysis
  • Cost Aggregation

What is the difference between actual costs and the Cost Baseline?

Contingency Reserve

  • BAC
  • Contingency Reserve
  • Cost Savings
  • Funding Requirements

Which is not a tool in Control Costs?

Expert Judgement

  • Expert Judgement
  • Earned Value Management
  • Forecasting
  • Reserve Analysis

Which process provides the means to recognize variance from the spending plan in order to take corrective action and minimize risk?

Control Costs

  • Determine Budget
  • Plan Cost Management
  • Control Costs
  • Control Budget

Which output of Control Costs would provide the PM with values for EAC, VAC, and ETC?

Cost Forecasts

  • OPA Updates
  • WPI
  • Cost Forecasts
  • Funding Requirements