4 Cost Planning and Control Online Quiz Questions

A project team has limited scope detail but can draw on actual costs from a similar completed project. Which estimating approach best fits this situation?

True or false: Bottom-up estimating can produce a detailed estimate even when the project scope has not been sufficiently defined.

A team estimates an activity's optimistic cost as $12,000, most likely cost as $15,000, and pessimistic cost as $18,000. Using the weighted three-point estimate $(O + 4M + P)/6$, what is the estimate?

True or false: A positive cost variance is favorable, but it should still be investigated because it may have causes other than genuine efficiency.

Which information should a useful cost estimate document? Select all that apply.

At a status date, earned value is $\$40{,}000$ and actual cost is $\$48{,}000$. What is the cost variance, calculated as $CV = EV - AC$?

A project has earned value of $\$40{,}000$ and actual cost of $\$48{,}000$. What is its cost performance index $CPI = EV \div AC$, rounded to the nearest hundredth?

A project team is investigating a cost variance. Which actions are appropriate? Select all that apply.

A stakeholder proposes adding work after the cost baseline has been approved. What should the project team do before changing the baseline?

A project's budget at completion is $BAC = \$100{,}000$. If its current cost performance index is $CPI = 0.80$ and that efficiency is assumed to continue, what is the simple forecast $EAC = BAC \div CPI$?

At a status date, a project has $PV = \$60{,}000$, $EV = \$50{,}000$, and $AC = \$55{,}000$. Diagnose its cost and schedule performance using cost variance, cost performance index, and the relationship between earned and planned value. Explain what these measures do not tell the team and what it should investigate next.

A team must prepare an early cost forecast for a project whose detailed activities are not yet defined. It has reliable actual-cost data from a similar completed project, although the new project differs in scale. Which estimating approach best fits this situation?

A maintenance team has a suitable cost rate per inspected unit and a reliable count of the units in a new job. The rate reflects the same kind of inspection work. Which estimating approach should it use?

A work package requires $120$ labor hours at $\$75$ per hour, $40$ material units at $\$50$ each, and a subcontract costing $\$3{,}000$. What is the estimated cost before any contingency is added?

A project manager needs the approved, time-phased budget against which cost performance will be measured and controlled. Which project cost concept is needed?

If earned value is below planned value at the status date, the project has completed less work than scheduled; this is a schedule signal, not by itself a cost variance.

A work package has earned value of $\$42{,}000$ and actual cost of $\$47{,}000$. Using $CV=EV-AC$, what is its cost variance? Enter the signed amount in USD.

A project has a budget at completion of $\$180{,}000$, and its current cost performance index is $0.90$. Assuming this cost efficiency continues, use $EAC=BAC/CPI$ to forecast the estimate at completion. Enter the amount in USD.