Cost Management Question: Download Cost Management PDF

The difference between the cost baseline and the cost budget can be BEST described as:

A. The management reserve
B. The contingency reserve
C. The project cost estimate
D. The cost account

Answer:

A. The management reserve

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You are about to take over a project from another project manager and find out the following information about the project. Activity Z has an early start (ES) of day 15 and a late start (LS) of day 20. Activity Z is a difficult activity. The cost performance index (CPI) is 1.1. The schedule performance index (SPI) is 0.8. There are 11 stakeholders on the project. Based on this information, which of the following would you be the MOST concerned about?

A. Schedule
B. Float
C. Cost
D. The number of available resources

You provide a project cost estimate for the project to the project sponsor. He is unhappy with the estimate, because he thinks the price should be lower. He asks you to cut 15 percent off the project estimate. What should you do?

A. Start the project and constantly look for cost savings
B. Tell all the team members to cut 15 percent from their estimates
C. Inform the sponsor of the activities to be cut
D. Add additional resources with low hourly rates