Cost Sample Questions

PMP Exam Prep

Cost Sample Questions

1. Analogous estimating uses a ______estimating style to generate project estimates?
2. Bottom up
3. Iterative
4. Top down
5. Historically based

1. A cost performance index of 1.08 means that ______?
2. The estimate at completion is forecasted to be 8% over the budget
3. The project cost is currently 8% over planned
4. The project is ahead of schedule and realizing cost savings
5. The project is getting $1.08 worth of value for every dollar spent

1. Which of the following items is supposed to be covered with contingency dollars?
2. Price escalation
3. Unplanned but necessary scope
4. Bad early estimates
5. The last 5% of the project

1. The cost to forgo a project to pursue a more lucrative one is normally called?
2. Opportunity cost
3. Management cost
4. Project selection cost
5. Sunk cost

1. Your sales group has negotiated a lump sum payment for your services at the end of year 2 of the contract. The payment is for $200,000. The present value of that payment is approximately?
2. $200,000
3. $235,000
4. $165,000
5. $400,000

1. If you were given unlimited time and resources to develop your estimate prior to project funding, the best type of estimating you could employ is?
2. Analogous
3. Bottom-up
4. Reserve Analysis
5. Parametric

1. Your engineers have submitted four project to the PMO for evaluation/selection. The First project has a BCR of 1:2, the Second project has an opportunity cost of $45,000, the Third project has an NPV of $15,000, and the Fourth project has a payback period of 1 year. Based on the data presented below which project would you select?
2. Project 1
3. Project 2
4. Project 3
5. Project 4

1. You are agglomerating the costs for each work package to create a baseline for the project budget. What step are you in?
2. Cost budgeting
3. Cost estimating
4. Cost control
5. Cost management

1. Your partner has asked you to build a fence around the garden to keep the neighborhood deer away. It is a large garden and it is expected that you will spend approximately 1 day and $500 in materials to complete each side. You are at the end of the third day. Based on your progress chart below, calculate the project performance metrics in the chart below:

Key: S – Actual Start

F – Actual Finish

PS – Planned Start

PF – Planned Finish

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