PMI PMP-Project Management Professional Practice Exam Q. 1061 to 1070
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Set of 10 Questions
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Q. 1061: Your project manager has requested that you provide him with a forecast of project costs for the next 12 months. He needs this information to determine if the budget should be increased or decreased on this major construction project. In addition to the usual information sources, which of the following should you also consider?
A. Cost estimates from similar projects
B. WBS
C. Project schedule
D. Costs that have been authorized and incurred
Section: Mix Questions
Justification in favor of the correct answer:
These costs are part of work performance data about project progress. In addition data include information about project progress such as which activities have started, their progress, and which deliverables have finished Updating the budget requires knowledge about the actual costs spent to date, and any budget changes are approved according to the Perform Integrated Change Control process.
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Q. 1062: There are a number of different earned value management rules of performance measurement that can be established as part of the cost management plan. Which one of the following is NOT an example of such a rule?
A. Code of accounts allocation provision
B. Formulas to determine the ETC
C. Earned value credit criteria
D. Definition of the WBS level
Section: Mix Questions
Justification in favor of the correct answer:
Rules of earned value performance measurement are part of the cost management plan and may
(1) define the points in the WBS where measurement of control accounts will be performed;
(2) establish the EV measurement techniques such as weighted milestones, fixed-formula, percent complete, etc., to be used; and
(3) specific tracking methods and EV equations for calculating the EAC forecasts to provide a validity check on the bottom-up EAC.
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Q. 1063: Which of the following calculations CANNOT be used to determine EAC?
A. EV to date plus the remaining project budget
B. Accepts actual costs and predicts future ETC work will be done at the budgeted rate
C. Assumes what the program has experienced can be expected to continue
D. ETC will be performed at an efficiency rate considering both the CPI and SPI
Section: Mix Questions
Justification in favor of the correct answer:
EAC is a forecast of the most likely total value based on project performance and risk quantification. To calculate EAC, the AC of a project must be known and used in the calculation. Any calculation that relies solely on the EV will not yield an accurate measure of cost performance.
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Q. 1064: Typically, the statement “no one likes to estimate, because they know their estimate will be proven incorrect” is true. However, you have been given the challenge of estimating the costs for your nuclear reactor project. A basic assumption that you need to make early in this is:
A. How direct and indirect costs will be handled
B. Whether or not experts will be available to assist you in this process
C. If there will be a multiyear project budget
D. Whether the project has required delivery dates
Section: Mix Questions
Justification in favor of the correct answer:
The scope statement, as part of the scope baseline, is a key input in the estimate costs process and should be reviewed. It provides the project description, acceptance criteria, key deliverables, boundaries, assumptions, and constraints about the project. It also notes one basic assumption that must be made as costs are estimated is whether the estimates will be limited only to direct project costs or whether they also will include indirect project costs.
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Q. 1065: By reviewing cumulative cost curves, the project manager can monitor:
A. EV
B. PV
C. CVs
D.CPI
Section: Mix Questions
Justification in favor of the correct answer:
Cumulative cost curves, or S-curves, enable the project manager to monitor cost variances at a glance. The difference in height between the planned-expenditure curve and the actual-expenditure curve represents the monetary value of variances at any given time.
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Q. 1066: Control accounts:
A. Are charge accounts for personnel time management
B. Summarize project costs at level 2 of the WBS
C. Identify and track management reserves
D. Represent the basic level at which project performance is measured and reported
Answer: D
Section: Mix Questions
Justification in favor of the correct answer:
Control accounts represent a management control point where scope, budget (resource plans), actual costs, and schedule are integrated and compared to earned value for performance measurement.
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Q. 1067: Performance review meetings are held to assess schedule activity and work packages over-running or under-running the budget and to determine any estimated funds needed to complete work in progress. Typically, if EV is being used, all but which of the following information is determined?
A. Variance analysis
B. Trend analysis
C. Time reporting systems
D. Earned value performance
Section: Mix Questions
Justification in favor of the correct answer:
Variance analysis focuses on cost and schedule to help explain the cause, issue, and corrective action. Trend analysis examines project performance over time to determine performance status. Earned value performance compares the performance measurement baseline to actual schedule and cost performance.
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Q. 1068: Overall cost estimates must be allocated to individual activities to establish the cost performance baseline. In an ideal situation, a project manager would prefer to prepare estimates:
A. Before the budget is complete
B. After the budget is approved by management
C. Using a parametric estimating technique and model specific for that project type
D. Using a bottom-up estimating technique
Section: Mix Questions
Justification in favor of the correct answer:
Often project cost estimates are prepared after budgetary approval is provided. However, activity cost estimates should be prepared before the budget is complete.
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Q. 1069: According to learning curve theory, when many items are produced repetitively:
A. Unit costs decrease geometrically as production rates increase linearly
B. Unit costs decrease as production rates increase
C. Unit costs decrease in a regular pattern as more units are produced
D. Costs of training increase as the level of automation increases
Section: Mix Questions
Justification in favor of the correct answer:
Learning curve theory indicates that human performance usually improves when a task is repeated. Specifically, each time output doubles, worker hours per unit decrease by a fixed percentage. This percentage is called the learning rate.
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Q. 1070: The method of calculating the EAC by assuming the ETC work will be performed at the same cumulative CPI incurred by the project to date is used most often when:
A. Current variances are viewed as atypical ones
B. Original estimating assumptions are no longer reliable because conditions have changed
C. Current variances are viewed as typical of future variances
D. Original estimating assumptions are considered to be fundamentally flawed
Section: Mix Questions
Justification in favor of the correct answer:
Past performance is indicative of future performance; therefore, EAC = BAC/CPI.
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