Question1

Whatis8tothepowerof8?

Question2

Whatis1.05tothepowerof7?

Question3

Theresultsofaprojectcanchangeanorganization'sfinancialstatements.Explain3waysthiscan occur.

Question4

Whatisworkingcapital?

Question5

Whyshouldaprojectmanagercareaboutprojectfinances?

Question 1

1. What is a key benefit of the budget process?
2. To review the financial value of different projects
3. It determines the cost baseline for monitoring performance
4. To select the best project among alternatives
5. It creates a cost/benefit analysis for different projects

Question 2

1. Why is it important to understand variable costs in a project budget?
2. For comparison to fixed costs
3. They help to understand spending against budget
4. They offer the project manager flexibility in project spending
5. They cannot be changed during project execution

Question 3

1. What are three tools & techniques used to determine a project budget?
2. Scope baseline, project schedule, resource rates
3. Reserve analysis, agreements, scope and schedule baselines
4. Expert judgement, parametric, bottomup
5. Expert judgement, cost aggregation, historical information

Question 4

What is the purpose of a cost management plan?

To verify the accuracy of cost estimates

1. To reconcile bottom up and topdown estimates for the budget
2. To aggregate the approved estimates into a project budget
3. To create policies on how project spending will be managed

Question 5

Under what condition will a cost baseline be changed?

1. The basis for the original cost estimate is found to be false and the project must be reestimated.
2. Significant cost deviations have been reported and it is desired to have future cost reports be based on an "as of" date.
3. The revision is the result of an approved scope change.
4. The time baseline is also changed.

Question 6

What is funding limit reconciliation?

1. Comparing planned expenditure to committed funding to identify variances
2. Comparing the project scope to the funding required
3. Finding variances between the budget and spending during the project
4. Determining the total funds required to complete the project

Question 7

How do you categorize costs such as equipment rental, material costs and utilities that are required for the project?

1. Variable
2. Indirect
3. Fixed
4. Recurring

Question 8

What cost control measures can be used to manage your project budget?

1. Accuracy, precision, exchange rates
2. Correct Answer
3. Purchase orders, time tracking, approval levels
4. Control thresholds, units of measure, organization culture
5. Expert judgment, data analysis, meetings

Question 9

A company produces 600 units at a cost of $15 each in manufacturing cost. There is an overhead cost of $6,000. What is the standard cost per unit?

1. $50
2. $20
3. $30
4. $25

Question 10

A project manager is using the internal rate of return method to make the final decision on which project to undertake. If inflation is 2%, which of these four projects have the highest internal rate of return?

1. $200,000 initial outlay with $80,000 per year cash inflows during the following five years
2. $180,000 initial outlay with $10,000 per year cash inflows during the following five years
3. $200,000 initial outlay with $25,000 per year cash inflows during the following five years
4. $180,000 initial outlay with $30,000 per year cash inflows during the following five years

Question 1

A technology company is being measured by the earned value reporting method.During the project one of the tasks, installing ten wireless repeater boxes, was completed. The planned value for this task was $8,000, and it was completed two weeks ago. Unfortunately, the incorrect repeaters were installed. The contractor has agreed to do the work of replacing them. What action should be taken on the earned value report?

1. Reduce PV by $8,000
2. Reduce AV by $8,000
3. Reduce EV by $8,000
4. Make no changes since the vendor has agreed to fix the problem

Question 2

Earned value management at the portfolio level requires:

1. a single project manager with a single metric system
2. aggregation of all earned value measures across the firm's entire project portfolio
3. only positive variances for both budget and schedule
4. only negative variances for both budget and schedule

Question 3

The calculation of the EAC assumes that:

1. The schedule performance index will remain the same for the remaining part of the project
2. The cost performance index will remain the same for the remaining part of the project
3. The BAC will be different by the end of the project
4. The EAC will continuously increase for the remaining portion of the project

Question 4

The team has completed tasks worth a budget value of $540,000. The actual costs to date are $600,000. According to the project reports, you are behind schedule and should have completed tasks budgeted at $450,000. What is the CPI?

1. 0.80
2. 0.90
3. 0.95
4. 1.20

Question 5

The EAC is $760,000. BAC is $800,000. What can be said about the project status?

1. The project is worse to budget
2. The current forecast is that project will be overspent to budget when it is complete
3. The current forecast is that the project will be underspent to budget when it is complete
4. The project is behind schedule

Question 6

When a project is complete which of the following must be true?

1. BAC = AC
2. AC = WV
3. SV = 0
4. BAC = ETC

Question 7

Ten months into the project, the team has completed tasks worth a budget value of $475,000. The actual costs to date are $380,000. According to the project reports, you are behind schedule and should have completed tasks budgeted at $500,000. What is the CPI?

1. 0.80
2. 0.95
3. 1.25
4. 1.4

Question 8

A project was originally scheduled for 12 months duration. If CPI is 1.25 then what is the new schedule duration?

1. 16 months
2. 20 months
3. 24 months
4. cannot be determined

Question 9

Eight months into the project, the team has completed tasks that have a budget value of $400,000. The actual costs to date are $340,000. According to the project reports, you are ahead of schedule and planned to complete tasks budgeted at $280,000. What are the correct EVM metrics for your project?

1. EV = $280,000, PV = $400,000, AC = $340,000
2. EV = $400,000, PV = $340,000, AC = $280,000
3. EV = $400,000, PV = $280,000, AC = $340,000
4. EV = $340,000, PV = $280,000, AC = $400,000

Question 10

The project budget is $520,000. ETC is $50,000. Actual cost is $450,000. What is the VAC?

a)VAC = $20,000

1. VAC = $20,000
2. VAC = $50,000
3. VAC = $60,000