PMP Test C07_01 01. One common way to compute estimate at completion (EAC) is to take the budget at completion (BAC) and: A. Divide by SPI. B. Multiply by SPI. C. Multiply by CPI. D. Divide by CPI. 02. Estimate at completion (EAC) is a periodic evaluation of: A. Cost of work completed. B. Value of work performed. C. Anticipated total cost at project completion. D. What it will cost to finish the job. 03. If earned value (EV) = 350, actual cost (AC) = 400, planned value (PV) = 325, what is cost variance (CV)? A. 350. B. -75. C. 400. D. -50. 04. Double declining balance is a form of: A. Decelerated depreciation. B. Straight line depreciation. C. Accelerated depreciation. D. Life cycle costing. 05. Analogous estimating: A. Uses bottom-up estimating techniques. B. Is used most frequently during the executing processes of the project. C. Uses top-down estimating techniques. D. Allways uses actual detailed historical costs. 06. The cost of choosing one project and giving up another is called: A. Fixed cost. B. Sunk cost. C. Net present value (NPV). D. Opportunity cost. 07. The main focus of life cycle costing is to: A. Estimate installation costs. B. Estimate the cost of operations and maintenance. C. Consider installation costs when planning the project costs. D. Consider operations and maintenance costs in making project decisions. 08. Cost performance measurement is best done through which of the following? A. Asking for a percent complete from each team member and reporting that in the monthly progress report. B. Calculating earned value and using the indexes and other calculations to report past performance and forecast future performance. Página: 1
C. Using the 50/50 rule and making sure the life cycle cost is less than the project cost. D. Focusing on the amount expended last month and what will be expended the following month. 09. A cost performance index (CPI) of 0.89 means: A. At this time, we expect the total project to cost 89 percent more than planned. B. When the project is completed we will have spent 89 percent more than planned. C. The project is only progressing at 89 percent of that planned. D. The project is only getting 89 cents value out of every dollar invested. 10. A project schedule performance index (SPI) of 0.76 means: A. The project is over budget. B. The project is ahead of schedule. C. The project is only progressing at 76 percent of the rate originally planned. D. The project is only progressing at 24 percent of the rate originally planned. 11. Which of the following is not needed in order to come up with a project estimate? A. WBS. B. Network diagram. C. Risks. D. Change control procedure. 12. Which of the following is an example of a parametric estimate? A. Dollars per module. B. Learning bend. C. Bottom-up. D. CPM. 13. A less rough order of magnitude estimate is made during which project management process group? A. Project planning. B. Project closing. C. Project executing. D. Project initiating. 14. How close to actual costs should a definitive budget estimate is? A. -75 percent to +25 percent. B. -10 percent to +15 percent. C. +10 percent to -25 percent. D. -15 percent to +20 percent. 15. Which factor would not be considered when choosing between two projects to undertake? A. Net present value (NPV). B. Benefit cost ratio (BCR). C. Payback period. D. Law of diminishing returns. 16. If project A has a net present value (NPV) of U.S. $30,000 and project B has an NPV of U.S. $50,000, what is the opportunity cost if project B is selected? A. $23,000. Página: 2
B. $30,000. C. $20,000. D. $50,000. 17. Which type of cost is team training? A. Direct. B. NPV. C. Indirect. D. Fixed. 18. Project setup costs are an example of: A. Variable costs. B. Fixed costs. C. Overhead costs. D. Opportunity costs. 19. Value analysis is performed to get: A. More value from the cost analysis. B. Management to buy into the project. C. The team to buy into the project. D. A less costly way of doing the same work. 20. Who has the cost risk in a fixed price (FP) contract? A. Team. B. Buyer. C. Seller. D. Management. 21. What formula is used to calculate the EAC, when deciding that the future will be able to meet the approved plan for the project? A. AC + ETC. B. AC + (BAC - EV). C. BAC / CPI. D. AC + ((BAC EV) /CPI X SPI). 22. In calculating the project TCPI using the formula (BAC - EV) / (BAC - AC), we obtain a value of 1. 6 How should we interpret this result? A. Because the index is greater than one, the project goes well, both in cost and on time. B. The project is well on cost, because the index is greater than one C. Because the index is greater than one, the project goes well to the deadline. D. There is not enough budget to complete the work to be done. 23. Meet the project scope required to submit a photocopy machine to the customer. A model costs 10,000 and 5 years. The B model costs 16,000 and lasts 10 years. Maintenance costs of the two models are similar. Following the approach of life cycle cost, which photocopy machine you would choose. A. Model A, the criterion we should deliver the cheapest. B. Model B, because it has a cost closer to his life. C. Model A, because the project budget must be as low as possible. D. Model B, since you always have to deliver the highest quality components. Página: 3
24. What better expresses the difference between management reserve and contingency reserve? A. The management reserve is made for known risks and contingency reserve for unknown hazards. B. The management reserve belongs to the project manager and the contingency reserve to the project sponsor. C. The contingency reserve is made for known risks and management reserve for unknown hazards. D. The management reserve is part of the baseline and the contingency reserve is outside. 25. What better expresses the difference between a reserve and padding? A. The reserve is known and shared by the team, while the mattress is hidden by individuals. B. The reserve is estimated to detail (bottom up) and padding at high level (top down). C. Reserve is for known risks and padding for unknown risks. D. Reserve is economic and padding is temporal. Página: 4
PMP Test C07_01 Solution Question Area Answer 01 Cost D 02 Cost C 03 Cost D 04 Cost C 05 Cost C 06 Cost D 07 Cost D 08 Cost B 09 Cost D 10 Cost C 11 Cost D 12 Cost A 13 Cost D 14 Cost B 15 Cost D 16 Cost B 17 Cost A 18 Cost B 19 Cost D 20 Cost C 20 Cost C 21 Cost B 22 Cost D 23 Cost B 24 Cost C 25 Cost A Página: 5