PMP (Cost Management) Questions

 An alert on the project's dashboard indicates that the project's CPI  has gone above the upper control limit on the control chart. What should the project manager do?

A project manager has taken extra care to identify dozens of individual activity risks on the project and has established reserves for the identified risks. During the gate review to start the execution stage of the project, the steering committee does not approve the project to proceed to execution due to inadequate reserves. What did the project manager most likely forget to do?

The project is falling behind schedule and is over budget. Nonetheless, there is pressure from the project sponsor to complete the project as planned  You must determine what the project's performance must be from this point onwards to achieve the delivery goals.

Which calculation are you most likely to use?

One of the key deliverables on the project has been found to contain a defect, and it does not meet project requirements. To scrap the deliverable and replace it would cost $12,000 and take five days to complete. To repair the defect would cost $4,000 and take two days to complete

What should the project manager do first?

A project manager determines that actual costs to date are $5M and then estimates thatapproximately$4M will still need to be spent to complete the project for a total anticipated expenditure of

$9M. However, the budget for the project is only$8.5M, which is a projected variance of -$0.5M. The anticipated expenditure of $9 MM is documented and reported to stakeholders according to the communications management plan

What has been reported to the stakeholders?

You are a project manager assigned to a bridge construction project Senior management has expressed their concerns regarding cost overruns in labor and materials which may jeopardize the successful completion of the project. You are asked to research the cause and impact of the cost to run and determine if corrective actions are needed.

What tool or technique is most helpful in this situation?

A project manager is 20 weeks into a project that was planned to be completed in one year. From a schedule perspective, half of the work has already been completed. What are the earned schedule and schedule variance for the project?

In preparation for an upcoming project status meeting, you have determined the value of the work completed thus far is $100,000 with a budget at completion (BAG) of $1,000,000. At this point in the project, you have spent 12% of the project budget. The value of work planned to be completed at this point is $115,000 What will you report at the project status meeting?

A project manager is planning a project to construct a new multiplex movie theater. As she starts the process of estimating the costs associated with the project, she is unsure whether to use an analogous or bottom-up approach The company has built similar movie theaters in the past, but senior management has a preference for the highest level of detail. What is the best resource to determine the estimating method that should be used for the project?

A project manager is preparing for a status meeting by examining the project's cost performance to date. She produces a chart which depicts the performance of EV, PV, and AC over the past year. The chart reveals that even though costs are over budget, cost performance has been improving over the past four consecutive months. What tool or technique has the project manager used?

Your project has been in execution for one month, and you have performed earned value analysis (EVA) to determine how the project is performing compared to the cost baseline. Which of the following is the result of your efforts?

A project team notices that over the last four work performance reports, the overall costs allocated to a work package are rising steadily, exceeding the funds allocated for this work package What should the project team do next?

A project manager is in the process of monitoring costs for a hotel construction project and determines that the project is running over budget with a 10% deviation from the baseline plan. What should the project manager do to determine if corrective action is necessary?

You are preparing to start the process of estimating the costs associated with your new project when a key stakeholder calls you and asks for an estimation of project costs. You provide the stakeholder with an estimate of $1 million with a range of $750,000 to $1.75 million and inform her that you will be able to narrow down the estimate once you are finished with your cost analysis. What have you provided to the stakeholder?