Cost Management Question: Download Cost Management PDF

You are managing a project with an EV of $15,000, PV of $12,000, and AC of $11,000. How would you BEST describe this project?

A. The project is ahead of schedule and within its budget.
B. The project is behind schedule and within its budget.
C. The project is ahead of schedule and over its budget.
D. The project is behind schedule and over is budget.

Answer:

A. The project is ahead of schedule and within its budget.

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The customer responsible for overseeing your project asks you to provide a written cost estimate that is 30 percent higher than your estimate of the project's cost. He explains that the budgeting process requires managers to estimate pessimistically to ensure enough money is allocated for projects. What is the BEST way to handle this?

A. Add the 30 percent as a lump sum contingency fund to handle project risks
B. Add the 30 percent to your cost estimate by spreading it evenly across all project activities
C. Create one cost baseline for budget allocation and a second one for the actual project management plan
D. Ask for information on risks that would cause your estimate to be too low

You are project manager for a railroad construction project. Your sponsor has asked you for a forecast for the cost of project completion. Which of the following is the BEST metric to use for forecasting?

A. EV and AC
B. SV and CV
C. ETC and VAC
D. SPI and CPI