PMI PMP-Project Management Professional Practice Exam Q. 1051 to 1060
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Set of 10 Questions
Correct Answer has been Highlighted in RED
Q. 1051: As of the fourth month on the Acme project, cumulative planned expenditures were $100,000.
Actual expenditures totaled $120,000. How is the Acme project doing?
A. It is ahead of schedule.
B. It is in trouble because of a cost overrun.
C. It will finish within the original budget.
D. The information is insufficient to make an assessment.
Section: Mix Questions
Justification in favor of the correct answer:
The information provided tells us that, as of the fourth month, more money has been spent than was planned. However, we need to know how much work has been completed to determine how the project is performing. In earned value terms, we missing the EV.
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Q. 1052: On your project, you need to assign costs to the time period in which they are incurred. To do this, you should:
A. Identify the project components so that costs can be allocated
B. Use the project schedule as an input to determine budget
C. Prepare a detailed and accurate cost estimate
D. Prepare a cost performance plan
Section: Mix Questions
Justification in favor of the correct answer:
Accurate project performance measurement depends on accurate cost and schedule information. The project schedule includes planned start and finish dates for all activities tied to work packages and control accounts. This information is used to aggregate costs to the calendar period for which the costs are planned to be incurred.
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Q. 1053: You have a number of costs to track and manage because your project is technically very complex. They include direct costs and indirect (overhead) costs. You have found that managing overhead costs is particularly difficult because they:
A. Are handled on a project-by-project basis
B. Represent only direct labor costs
C. Represent only equipment and materials needed for the project
D. Are usually beyond the project manager’s control
Section: Mix Questions
Justification in favor of the correct answer:
Overhead includes costs such as rent, insurance, or heating, that pertain to the project as a whole and cannot be attributed to a particular work item. The amount of overhead to be added to the project is frequently decided by the performing organization and is beyond the control of the project manager.
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Q. 1054: If you want to calculate the ETC based on your expectations that similar variances to those noted to date will not occur, you should use which of the following formulas?
A. ETC = BAC – EV
B. ETC = (BAC – EV)/CPI
C. ETC = AC + EAC
D. ETC = AC + BAC – EV
Section:Mix Questions
Justification in favor of the correct answer:
This formula assumes that the estimate to complete is based on the same cost efficiency level.
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Q. 1055: You receive a frantic phone call from your vice president who says she is going to meet with a prospective client in 15 minutes to discuss a large and complex project. She asks you how much the project will cost. You quickly think of some similar past projects, factor in a few unknowns, and give her a number. What type of estimate did you just provide?
A. Definitive
B. Budget
C. Order-of-magnitude
D. Detailed
Section: Mix Questions
Justification in favor of the correct answer:
An order-of-magnitude estimate, which is referred to also as a ballpark estimate, has an accuracy range of -25% to 75% and is made without detailed data.
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Q. 1056: Your approved cost baseline has changed because of a major scope change on your project. Your next step should be to:
A. Estimate the magnitude of the scope change
B. Issue a change request
C. Document lessons learned
D. Execute the approved scope change
Section: Mix Questions
Justification in favor of the correct answer:
Before a revised cost baseline leading to a budget update can be prepared, it is necessary to issue a change request, which may include preventive or corrective action. These change requests then are reviewed and processed through the Perform Integrated Change Control process.
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Q. 1057: Which of the following is a tool for analyzing a design, determining its functions, and assessing how to provide those functions’ cost effectively?
A. Pareto diagram
B. Value analysis
C. Configuration management
D. Value engineering
Section: Mix Questions
Justification in favor of the correct answer:
Value engineering considers possible cost trade-offs as a design evolves. The technique entails identifying the functions that are needed and analyzing the cost effectiveness of the alternatives available for providing them. It helps optimize project life cycle costs, save time, increase profits, improve quality, increase market share, solve problems, and contribute toward more effective resource use.
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Q. 1058: The cumulative CPI has been shown to be relatively stable after what percentage of project completion?
A. 5% to 10%
B.15% to 20%
C.25% to 35%
D.50% to 75%
Section: Mix Questions
Justification in favor of the correct answer:
The CPI has been proven to be an accurate and reliable forecasting tool. Researchers have found that the cumulative CPI does not change by more than 10% once a project is approximately 20% complete. The CPI provides a quick statistical forecast of final project costs.
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Q. 1059: The undistributed budget is part of the:
A. Management reserve
B. Performance measurement baseline
C. Level-of-effort cost accounts
D. General and administrative accounts
Section: Mix Questions
Justification in favor of the correct answer:
The undistributed budget is applied to project work that has not yet been linked to WBS elements at or below the lowest level of reporting. It is, therefore, part of the performance measurement baseline and is expected to be used in the performance of project work.
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Q. 1060: It is expensive to lease office space in cities around the world. Office space can cost approximately USD $80 per square foot in Tampa, Florida. And it can cost approximately $50,000 per square meter in Tokyo. These “averages” can help a person to determine how much it will cost to lease office space in these cities based on the amount of space leased. These estimates are examples of:
A. Variance analysis
B. Parametric estimating
C. Bottom-up estimating
D. Reserve analysis
Section: Mix Questions
Justification in favor of the correct answer:
Parametric estimating involves using statistical relationships between historical data and other variables to calculate or estimate for activity parameters, such as cost, budget, or duration. The example is representative of a simple parametric model.
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