Professional Cost Management Interview Preparation Guide Download PDF
Cost Management related Frequently Asked Questions in various Cost Management job Interviews by interviewer. The set of questions here ensures that you offer a perfect answer posed to you. So get preparation for your new job hunting
49 Cost Management Questions and Answers:
Table of Contents:
1 :: Who has the cost risk in a fixed price (FP) contract?
A. The team
B. The buyer
C. The seller
D. Management
C. The seller
4 :: You are managing a project with a schedule performance index (SPI) of 1.07 and a cost performance index (CPI) of .94. How would you BEST describe this project?
A. The project is ahead of scheule 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 its budget.
C. The project is ahead of schedule and over its budget.
6 :: 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.
A. The project is ahead of schedule and within its budget.
8 :: A manufacturing project has a schedule performance index (SPI) of 0.89 and a cost performance index (CPI) of 0.91. Generally, what is the BEST explanation for why this occurred?
A. The scope was changed
B. A supplier went out of business and a new one needed to be found
C. Additional equipment needed to be purchased
D. A critical path activity took longer and needed more labor hours to complete
D. A critical path activity took longer and needed more labor hours to complete
14 :: A project manager needs to analyze the project costs to find ways to decrease costs. It would be BEST if the project manager looks at:
A. Variable costs and fixed costs
B. Fixed costs and indirect costs
C. Direct costs and variable costs
D. Indirect costs and direct costs
C. Direct costs and variable costs
15 :: Cost risk means:
A. There are risks that will cost the project money
B. The project is too risky from a cost aspect
C. There is a risk that project costs could go higher than planned
D. There is a risk that the cost of the project will be lower than planned
C. There is a risk that project costs could go higher than planned
17 :: 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
A. The management reserve
19 :: Earned value analysis is an example of:
A. Performance reporting
B. Planning control
C. Ishikawa diagrams
D. Integrating the project components into a whole
A. Performance reporting
22 :: A cost management plan contains a description of:
A. The project costs
B. How resources are allocated
C. The budgets and how they were calculated
D. The WBS level at which earned value will be calculated
D. The WBS level at which earned value will be calculated
23 :: Monitoring cost expended to date in order to detect variances from the plan occurs during:
A. The creation of the cost change management plan
B. Recommending corrective actions
C. Updating the cost baseline
D. Product performance reviews
D. Product performance reviews
24 :: You have just completed the initiating processes of a small project and are moving into the planning processes when a project stakeholder asks you for the projects budget and cost baseline. What should you tell her?
A. The project budget can be found in the project's charter, which has just been completed
B. The project budget and baseline will not be finalized and accepted until the planning processes are completed
C. The project management plan will not contain the project's budget and baseline; this is a small project
D. It is impossible to complete an estimate before the project management plan is created
B. The project budget and baseline will not be finalized and accepted until the planning processes are completed
25 :: Early in the life of your project, you are having a discussion with the sponsor about what estimating techniques should be used. You want a form of expert judgment, but the sponsor argues for analogous estimating. It would be BEST to:
A. Agree to analogous estimating, as it is a form of expert judgment
B. Suggest life cyde costing as a compromise
C. Determine why the sponsor wants such an accurate estimate
D. Try to convince the sponsor to allow expert judgment because it is typically more accurate
A. Agree to analogous estimating, as it is a form of expert judgment
