# Learn and Practice Free Cost Management Set 1 questions

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#### The three most common types of project cost estimates are:

Option 1: Order of magnitude, parametric and budget
Option 2: Parametric, definitive, and analogous
Option 3: Order of magnitude, budget, and definitive
Option 4: Analogous, parametric, and bottom-up
Option 5: Order of magnitude, definitive, and bottom-up

#### A definitive estimate should give the manager cost data accurate to within:

Option 1: -5 to +10 percent of actual costs
Option 2: -25 to +75 percent of actual costs
Option 3: -30 to +85 percent of actual costs
Option 4: -10 to +25 percent of actual costs
Option 5: None of the above

#### A graphical display of accumulated costs and labor hours for both budgeted and actual cost, plotted against time, is called a(n) ______________.

Option 1: Trend line
Option 2: Trend analysis
Option 3: Cost baseline
Option 4: Percent completion report
Option 5: Earned value report

#### Which of the following depreciation methods provides for accelerated depreciation of an asset:

Option 1: Double-declining balance
Option 2: Straight line
Option 3: Exponential depreciation
Option 4: Double sum-of-the-year digits
Option 5: Double increasing balance

#### Cost performance index is:

Option 1: AC/EV
Option 2: SPI/PV
Option 3: EV/AC
Option 4: PV/EV
Option 5: None of the above

#### The future value of \$ 15,000 invested at 9.5% for five years will be:

Option 1: \$ 22,125
Option 2: \$ 16,625
Option 3: \$ 23,614
Option 4: \$ 26,250
Option 5: None of the above

#### The work breakdown structure, the work packages, and the company?s accounting system are tied together through the:

Option 1: Code of accounts
Option 2: Budgeting system
Option 3: Capital budgeting process
Option 5: All of the above

#### Life Cycle Costing:

Option 1: Is an activity devoted to optimizing cost/performance
Option 2: Is the concept of including all costs within the total life of a project.
Option 3: Is an activity of appraising the cost and technical performance of a completed project
Option 4: Is a process of predicting the life of a project
Option 5: All of the above

#### Which of the following are examples of indirect costs?

Option 1: Salaries of corporate executives
Option 2: Salaries of full-time project staff
Option 4: a and b
Option 5: a and c

#### Project Cost Management includes all of the following except:

Option 1: Resource leveling
Option 2: Resource planning
Option 3: Cost estimating
Option 4: Cost budgeting
Option 5: Cost control

#### Which of the following choices indicates that a project has a burn rate of 1.2

Option 1: The BCWS is 100 and the BCWP is 120.
Option 2: The ACWP is 100 and the BCWP is 120.
Option 3: The ACWP is 120 and the BCWP is 100.
Option 4: The BCWP is 100 and the BCWS is 120.
Option 5:

#### The inputs to Cost Budgeting includes all of the following except:

Option 1: Cost estimates
Option 2: Cost baseline
Option 3: WBS
Option 4: Project schedule
Option 5:

#### During the six month update on a 1 year, \$50,000 project, the analysis shows that the BCWS is \$25,000; the BCWP is \$20,000 and the ACWP is \$15,000. What can be determined from these figures?

Option 1: The project is behind schedule and over cost.
Option 2: The project is ahead of schedule and under cost.
Option 3: The project is ahead of schedule and over cost.
Option 4: The project is behind schedule and under cost.
Option 5:

#### Earned value is:

Option 1: Actual cost of work performed.
Option 2: Completed work value.
Option 3: Budgeted cost of work performed.
Option 4: Percent complete.
Option 5: All except A.

#### Which of the following statements concerning bottom-up estimating is true?

Option 1: The cost and accuracy of bottom-up estimating is driven by the size of the individual work items.
Option 2: Smaller work items increase both cost and accuracy.
Option 3: Larger work items increase both cost and accuracy.
Option 4: A and C
Option 5: A and B

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