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Top 10 PMP Exam FAQs-Project Cost Management Questions,Answers

This page of project management blog covers top 10 PMP Exam FAQs. This PMP Exam questions and answers are based on project Cost management.

List of Frequently Asked Questions(FAQs) and Answers

Question-1: Project Cost Management includes all of the following functions EXCEPT
a. Cost budgeting
b. Activity Resource Planning
c. Cost estimating
d. Cost Control

Question-2: Cost estimates include all of the following resource categories EXCEPT:
a. Labor
b. Material
c. Supplies
d. Time allocation

Question-3: All of the following choices represent inputs to the activity resource estimating process EXCEPT:
a. Ogranizational process asset
b. Project management plan
c. The actual final cost of the last project
d. Activity list

Question-4: Analogous estimating:
a. Uses bottom up estimating techniques
b. uses actual cost of previous project which are similar to the one we need to execute
c. It used most frequently in the later stages of a project
d. Summarizes estimates for individual work items

Question-5: Inputs to activity resource estimating include all of the following EXCEPT:
a. The activity attributes
b. Project Management Plan
c. Resource availability
d. Resource requirements

These PMP EXAM FAQs on cost management cover questions and answers very useful for the PMP aspirants.

Question-6: Given
a. BAC =1200
b. AC =120
c. EV=80
d. CPI=0.666
Assuming that current variances are typical of future variances, the estimate at completion(EAC) is
a. 220
b. 260
c. 300
d. 320

Question-7: If Earned Value(EV) = 350, Actual Cost(AC)=400, Planned Value(PV)= 325, What is Cost Variance(CV)?
a. 350
b. -75
c. 400
d. -50

Question-8: A Cost variance Index(CPI) of 0.89 means:
a. At this time, we expect the total project cost 89% more than planned
b. When the project is completed we will have spent 89% more than planned
c. The project is only progressing at 89% of the rate originally planned
d. The project is getting 89 paise/cents out of every Rupee/$ invested

Question-9: A schedule Performance Index(SPI) of 0.76 means:
a. We are over budget
b. We are ahead of schedule
c. We are progressing at 24% behind the rate originally planned
d.We are only progressing at 24% of the rate originally planned

Question-10: If project A has a Net Present Value(NPV) of RS. 30000 and Project B has NPV of RS. 50000. What is the opportunity cost if project B is selected?
a. Rs. 23000
b. Rs. 30000
c. Rs. 20000
d. Rs. 50000

Question-11: Which type of cost is team training?
a. Direct
b. NPV
c. Indirect
d. Fixed

Question-12: Project setup costs are an example of:
a. Variable cost
b. Fixed cost
c. Overhead cost
d. Opportunity cost

Question-13: Who has the cost risk in a fixed price contract?
a. The team
b. Buyer
c. Seller
d. Management

Answers to Project Cost Management FAQS

1. B   2. D   3. C   4. B   5. D   6. C   7. D   8. D   9. C   10. B   11. A   12. B   13. C


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