Answers to Cost Management Questions

1. D is the correct answer. A Basis of estimates should be captured and recorded to give a clear and complete understanding of how the cost estimate was arrived at.

2. B is the correct answer. The 3 point estimating technique has two formulae of which beta distribution gives the highest accuracy.

3. C is the correct answer. The cost forecast is a term you would expect to see in the Project Budget but isn’t. The PMI term for that is Project Estimates. An output of Control Costs is cost forecasts which you would then communicate to stakeholders.

4. A is the correct answer.

5. B is the correct answer.

6. D is the correct answer.

7. C is the correct answer.

8. A is the correct answer. The cost estimates for each activity are aggregated, to the work package, for each work package to the control account, the control accounts to the Project Estimate and the contingency reserve added to form the cost baseline.

9. D is the right answer. The rate is an efficiency rate to be applied for the remainder of the project and is therefore, required to complete the project.

10. B is the right answer.

11. C is the correct answer. As a PMP Project Manager in good standing, you should operate openly, transparently and communicate variances in project performance, both positive and negative, without trying to hide anything or gold plate by adding features.

12. A is the right answer.

13. C is the correct answer.

14. C is the correct answer.

15. D is the correct answer.

Previous chapter

Up one level

Next chapter

Answers to Cost Management Questions

DISCLAIMER