Tài liệu Project Management Professional-Chapter 13a (Question) pdf

COST MANAGEMENT
1. A project manager wants to make a trip to California by car. The project
manager knows how many miles it will be to drive to California, the
current price of gasoline, and how many miles the car will go on a
gallon of gasoline. From this information he or she can calculate the
estimated cost of the gasoline for the trip. This is a form of what kind
of estimating technique?
a. Definitive
b. Analogous
c. Parametric
d. Quantitative
2. A project manager wants to make a trip to California by car. The project
manager knows someone who has made this trip before. This person
has a similar car to the one that the project manager has, and the person
has kept good records on the money spent for fuel on the trip. The
distance that the project manager will travel is 10% further than the
other person’s trip. By multiplying the cost of fuel reported by the other
person by 1.1, the project manager is performing what kind of estimate?
a. Definitive
b. Analogous
c. Parametric
d. Quantitative
3. To distinguish top down estimates form bottom up estimates, it would
be correct to say that the bottom up estimate would be:
a. Less accurate.
b. Both have about the same accuracy.
c. More accurate.
d. No different to perform that the top down estimate.
4. A project manager and the project team identify several specific risks in
a project. The expected value of these risks is estimated at $10,000. The
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impact on the project brought about by these risks is estimated at
$40,000. What value should be entered into the management reserve
for these risks?
a. $10,000
b. $40,000
c. $0
d. $25,000
5. A project manager and the project team identify several specific risks in
a project. The expected value of these risks is estimated at $10,000. The
impact on the project brought about by these risks is estimated at
$40,000. What value should be entered into the contingency reserve for
these risks?
a. $10,000
b. $40,000
c. $0
d. $25,000
6. What characteristic best describes the cost baseline?
a. Total budget for the project
b. Time phased budget for the project
c. Total budget for the project including the contingency budget
d. Total budget for the project including the contingency budget and
the management reserve
7. A project is formed to produce a product that will be used for transport-
ing people. Costs that are associated with the project that occur after
the delivery of the product to the customer are considered to be what
kind of cost?
a. Prorated costs
b. Expenses
c. Life cycle cost

d. Expected value
8. A project team receives an approved change request from the customer.
The team has previously estimated that the cost to implement this
change is $10,000. The customer has agreed to pay this amount for the
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additional work. The customer realizes that there is a 50 percent chance
that this change will not work and will later be removed. What change,
if any, should be made in the budget?
a. The project budget should not be increased.
b. The project budget should be increased by $15,000.
c. The project budget should be increased by $10,000.
d. The project budget should be increased by $5,000.
9. The act of doing anything that will help to bring future project per-
formance into line with the project plan is called:
a. Budget update.
b. Revised cost estimate.
c. Corrective action.
d. Contingency planning.
10. Which of the following choices would be an acceptable cause for ‘‘re-
baselining’’ a $10 million project?
a. The monthly consumer price index on some of the commodities
used on the project have been identified as having gone up by 1.6%,
an increase of 46% over the 1.1% which had been budgeted.
b. The client has authorized a $10,000 addition to the scope of the
project.
c. The contractor’s company has instituted a quality program on which
they have pledged to spend $1 million during the next year.
d. The productivity in the drafting department has shown to be lower
than anticipated, which has resulted in 1,000 additional hours, a

78% increase over what was budgeted.
11. In terms of earned value reporting, a project is considered complete
when the:
a. BAC is equal to the PV.
b. The EV is equal to the AC.
c. The PV is equal to the AC.
d. The BAC is equal to the EV.
12. The time phased cost of the project that reflects the expenditures rather
than the consumption of a resource that will be used to measure and
monitor cost performance on a project is the:
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a. Spending plan.
b. Cost baseline.
c. WBS.
d. Schedule.
13. A large piece of equipment is needed for the project. It will be retained
and used after the project is completed. The equipment has a value of
$500,000, and it has a scrap value of $50,000 at the end of its useful
life of ten years. If the sum of the years’ digits method of depreciation
is used, what is the depreciation that is taken at the end of the third
year?
a. $81,818
b. $90,900
c. $65,250
d. $72,500
14. Using the formula: Present value ס S/(1םi)
n
where ‘‘i’’ is the interest
rate in percentage, ‘‘n’’ is the number of periods, and ‘‘S’’ is the starting

amount, the following table is produced:
Periods 10% 12% 14%
1 0.909 0.893 0.877
2 0.826 0.797 0.769
3 0.751 0.712 0.675
4 0.683 0.636 0.592
5 0.621 0.597 0.519
Based on the table, what is the value of an annual income flow of $1,300
each year over the next three years at 12%?
a. $3122.60
b. $3900.00
c. $3497.00
d. 36%
15. Life cycle costing:
a. Is a method of including all of the cost associated with the project
over its entire life.
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b. Is a federal government accounting method.
c. Is a method of predicting the life of a project.
d. Is a method of evaluating projects when they are complete.
The following table and description refer to questions 16 through 22.
A project manager is using the earned value reporting method to manage his
project. The following table shows the data collected to date. The plan is for
the project to be complete after eight weeks. The earned value report shows
data collected for the first four weeks of the project. The figures shown in
the table are cumulative.
Week PV AC EV
1 1,000 1,000 1,000
2 3,000 2,000 2,500

3 5,000 5,000 6,000
4 7,000 9,000 7,000
5 13,000
6 17,000
7 19,000
8 20,000
16. What is the cost performance index for week 4?
a. 1.000
b. 0.777
c. 1.286
d. 1.250
17. What is the schedule performance index for week 3?
a. 1.200
b. 0.833
c. 1.000
d. 1.500
18. What is the BAC for the project during week 4?
a. 7,000
b. 9,000
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c. 5,000
d. 20,000
19. During week 5 it is found that some of the work that was reported
complete in week 2 was considered unacceptable. It will require $500
to fix the problem and make this work acceptable. The work is sched-
uled to be done in week 6. No other work is reported to be complete
during week 5. What is the EV for week 5?
a. 7,000
b. 6,500

c. 9,000
d. 5,000
20. What is the cost variance for week 4?
a. 0
b. מ2,000
c. 2,000
d. 7,000
21. What is the schedule variance in week 2?
a. 500
b. 1,000
c. מ500
d. מ1,000
22. What is the EAC at week 4?
a. 20,000
b. 15,555
c. 25,740
d. 17,717
23. The calculation of the EAC assumes that:
a. The schedule performance index will remain the same for the re-
maining part of the project.
b. The cost performance index will remain the same for the remaining
part of the project.
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c. The BAC will be different by the end of the project.
d. The EAC will continuously increase for the remaining portion of
the project.
24. What factors need to be known in order to be able to calculate the
ETC?
a. Budget at completion, actual cost, and planned value

b. Budget at completion, earned value, and actual cost
c. Estimate at completion and planned value
d. Estimate at completion and actual cost
25. A construction company is being measured by the earned value report-
ing method. During the project one of the tasks, installing ten elm trees,
was completed. The planned value for this task was $4,000, and it was
completed two weeks ago. Unfortunately for the contractor, maple trees
should have been planted. The customer insists that maple trees be
planted and that the elm trees be removed. As of this time the elm trees
are still in the ground, but the contractor has agreed to do the work
of replacing them. What action should be taken on the earned value
report?
a. Reduce PV by $4,000
b. Reduce AC by $4,000
c. Reduce EV by $4,000
d. Make no changes since the vendor has agreed to fix the problem
26. Learning curve theory emphasizes that in producing many goods:
a. Cost decreases as production rates increase.
b. Average unit cost decreases as more units are produced.
c. Materials become cheaper when they are purchased in bulk.
d. Laborers become more productive because of technological ad-
vances.
27. A project manager is considering applying learning curve theory to his
project. The project involves designing a number of software modules
that are very similar. According to the cost figures that have been col-
lected the first unit required 100 person-hours to design and test. The
second unit required 90 person-hours to design and test. How many
person-hours will the eighth module take to design and test?
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262 Preparing for the Project Management Professional Certification Exam

a. 90
b. 100
c. 73
d. 172
28. A project manager decides that for this point in the project life cycle
she will use an analogous estimate. One of the things that the project
manager will not have to worry about in preparing this estimate is:
a. Activity listings.
b. Scaling the estimate.
c. Quantifying the estimate.
d. Historical support for the figures used.
29. A project manager is preparing the budget for the project. There are
several inputs to the budgeting process that the project manager will
use. One of the things that the project manager will not use is the:
a. Cost estimates.
b. Project schedule.
c. Cost baseline.
d. Work breakdown structure.
Use the following information for questions 30 and 31.
A project team has a programmer on the team. The programmer will work
on the project for twenty-six weeks as a full time team member. Her utiliza-
tion is 72%, productivity is 80%, basic wages are $50 per hour, fringe bene-
fits are 30%, and overhead costs are 50% of wages plus fringe benefits. Use
a forty hour work week.
30. What is the cost of this employee for the project?
a. $136,760
b. $126,750
c. $176,041
d. $101,400
31. One of the tasks that the person in the above project is assigned requires

100 hours of effort. What is the cost of the task?
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a. $12,187
b. $16,927
c. $9,750
d. 13,541
32. The contingency budget will:
a. Reduce the probability of scope changes.
b. Reduce the probability of cost overruns.
c. Increase the probability of a cost overrun.
d. Increase the probability of scope changes.
The following table should be used for questions 33, 34, and 35.
A project manager is assigned to a project early in the project life cycle. One
of the things that must be done is to do a justification for the project. Since
very little information is known about the project, the estimate is considered
to be rough estimates. The following table is the manager’s estimate of the
cash flows that will take place over the next five years.
End of Year Cash Flow In Cash Flow Out
1 0 500,000
2 300,000 90,000
3 400,000 100,000
4 100,000 175,000
5 50,000 35,000
33. What is the payback period for this project?
a. One year
b. Two years
c. Three years
d. Four years
34. What is the net cash flow at the end of five years?
a. 50,000
b. מ50,000
c. 850,000

d. 100,000
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35. If the net present value for each of the cash flows were calculated at a
10% interest rate, the net present value cash flow at the end of five years
would be:
a. Greater than the total cash flow without the net present value ap-
plied.
b. Less than the total cash flow without the net present value applied.
c. The same as the total cash flow without the net present value ap-
plied.
d. Cannot be calculated with the information supplied.
36. During the full life cycle of the project, a plot of the project’s expected
expenditures will usually follow a characteristic ‘‘S’’ shape. This indi-
cates that:
a. There is a cyclic nature to all projects.
b. Problems will always occur in the execution phase.
c. There are high expenditures during closeout.
d. The bulk of the project budget will be spent in the execution phase.
37. A project manager is using the earned value reporting system to manage
his project. At this point in time the EV is $24,000, the BAC is
$97,000, the PV is $29,000, and the AC is $45,000. What is the per-
cent complete?
a. 30%
b. 25%
c. 46%
d. 53%
38. The project manager of a project must buy a large piece of equipment
costing $1,543,256. He meets with the accounting department repre-
sentative to the project team and reviews the different depreciation

methods that can be used to depreciate the equipment over the useful
life of the equipment. Which of the following is an accelerated deprecia-
tion method?
a. Multiplication of the years’ digits
b. Straight line
c. Sum of the years’ digits
d. Average deflation
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The following situation refers to questions 39, 40, 41, and 42.
In a manufacturing facility that makes electronic widgets, the main widget
making machine is getting old and a project is formed to consider the re-
placement of this machine. The average cost of the operations performed on
this machine for making a widget is $5.00 per unit. A new machine can be
purchased for $50,000 that will perform these operations much more
quickly and with less scrap and rework for an average cost of $3.00 per unit.
An alternative machine is even faster than the first machine considered and
will perform the same operations for $2.00 per unit. However, this machine
will cost $75,000. The company manufactures 1,000 widgets each month.
39. What is the break even point for the $75,000 machine compared to the
existing machine?
a. 100,000 units
b. Three years
c. Five years
d. 25,000 units
40. What is the break even point for the $50,000 machine compared to the
existing machine?
a. 100,000 units
b. Three years
c. Five years

d. 25,000 units
41. What is the break even point for the $75,000 machine compared to the
existing machine?
a. 100,000 units
b. Three years
c. Five years
d. 25,000 units
42. If the production of widgets is expected to continue for at least three
years, what is the preferred action?
a. Do not replace the machine
b. Replace the existing machine with a new machine costing $50,000
c. Replace the existing machine with a new machine costing $75,000
d. Buy both machines
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