Question 1

What is the main task in relation to project costs that is completed in the proponent phase of a project? (Introduction)

Select the correct answer:

a) to develop an estimate of costs for the project proposal

b) to develop a detailed budget estimate and obtain approval for the project's budget

c) to review the budget with the project team and stakeholders and to gain their approval for any changes made

d) the preparation of end-of-project financial reports, the disposal of project assets, the redeployment of staff and the finalisation of contracts

e) all of these

Answer:

Question 2

2. What information do you need to estimate the costs of project activities?

Select the correct answer:

a) details of project activities

b) details of the resources required for the project

c) the rates or costs of resources

d) task duration estimates from the WBS and project schedule

e) all of these

Answer:

Question 3

Match the below terms to their explanations in the Answer table.

Select the correct answer:

1. Analogous estimating
2. Bottom-up estimating
3. Fixed budget estimating

Answer:

	The cost of individual activities are calculated using the base rates or per-use costs for resources and fixed costs or cost resources
	Taking the total amount of money available to the project and dividing it across the project's components to ascertain what you can and cannot afford
	The overall resource, task and project cost totals are estimated based on previous experience of similar projects

Question 4

What information is defined in the cost management plan?

Select the correct answer:

a) who is responsible for managing costs

b) who has the authority to approve changes to the project or its budget

c) how cost performance is quantitatively measured and reported upon

d) report formats and frequency and to whom the plan is presented

e) all of these

Answer:

Question 5

What formula is used to calculate cost variance?

Select the correct answer:

a) EV - PV

b) EV - AC

c) EV/AC

d) EV/PV

e) all of these

Answer:

Question 6

When there is a transfer of financial assets that are due, the transferrer is deemed to have fulfilled their liability for this.

a) True

b) False

Answer:

Question 7

Put the steps for finalising project costs in the correct order.

Answer:

	Delivering/handing over the project outcomes and outputs to the customer
	Obtaining formal acceptance from the customer
	Creating final reports and archiving the project library
	Reassigning/releasing project team members
	Shutting down resources and releasing to new uses
	Closing accounts and seeing that all invoices are settled

Question 8	Which of the following may be evaluated at the end of a project? Select the correct answer: a) it is a legal requirement b) the performance of resources when they are redeployed into new projects c) was the project delivered within budget, and how were variances managed d) all of these
Answer:
Question 9	Why is it important to capture lessons learned? Select the correct answer: a) to promote the financial benefits b) to highlight the return on investment c) for use in case studies d) to assist in asking for participation e) all of these
Answer:
Question 10	Which of the following is an example of a cost estimating method? Select the correct answer: a) Parametric estimating b) Cost of Quality (COQ) c) Reserve analysis d) Top-down or bottom-up estimating e) all of these
Answer:
Question 11	Choose the correct answer from the two options in brackets Cost management involves the identification and estimation of costs identified from the (work breakdown structure (WBS)/operational budget) and planning their (spending/management) by using a (critical path analysis/cost management plan).
Answer:

Question 12

Which of the following is an example of an expenditure control?

Select the correct answer:

a) contract negotiations and approvals

b) Work Breakdown Structure (WBS)

c) Cost of Quality (COQ)

d) critical path analysis

e) all of these

Answer:

Question 13

Cost variances occur when the actual costs are the same as those that were budgeted for. Is this true or false?

Answer:

Question 14

What information needs to be included when you report variances?

Select the correct answer:

a) the cause of the variance

b) anticipated impacts

c) planned corrective actions

d) all of these

Answer:

Question 15

Match the beginnings to the ends of the sentences to explain the tasks the project manager undertakes in order to finalise costs.

Beginnings: 1. Measure, examine and test

2. Conduct a procurement audit

3. Review the project and/or the organisation's

Answer:

	to identify contractor successes and failures
	the deliverables to ensure that results conform to requirements
	files and records