Here is a list of sample questions which would help you to understand the pattern of questions on Project Cost Management being asked in PMP Certification Exams.
(1) Which type of project cost estimate is the most accurate?
Answer:B
Hint: Definitive estimates are in range -5% to 10% in accuracy. Page 201, PMBOK 5
(2) Which of the following type of contracts is most preferable to the contractor doing the project work?
Answer: A
Hint: Cost plus fixed fee covers the actual cost
(3) ) To assist in budget control, it is suggested that an estimate be created at the _____ ____ ______ level of the WBS
Answer: B
Hint: Work package is the lowest unit of work to estimate cost and duration.
(4) Cost Variance (CV) is which of the following equations?
Answer:B
Hint: Cost variance, Page 218, PMBOK 5
(5) Determining budget can be best described by which of the following?
Answer:B
Hint: Page 193, PMBOK 5
(6) Which of the following is a direct project cost?
Answer: C
Hint: cost of resources used in a project. See Page 202, PMBOK 5
(7) Control Costs can be best described by which of the following?
Answer: D
Hint: Control Costs, Page 193, PMBOK 5
(8) The PV = $250, the AC = $350, and the EV = $200. Calculate the Cost Variance.
Answer: A
Hint: CV=EV-AC
(9) One of the types of cost estimation is Rough Order of Magnitude. This estimate:
Answer: D
Hint: Page 201, PMBOK 5
(10) The sum of all budgets established for the work to be performed is known as:
Answer: C
Hint: Refer Table 7-1, Page 224, PMBOK 5
(11) The processes involving planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget fall under
Answer: A
Hint: Read First para, Page 193, PMBOK 5
(12) The process that establishes the policies, procedures and documentation for planning, managing, expending, and controlling project costs is known as
Answer: C
Hint: Page 193, PMBOK 5
(13) The process of monitoring the status of the project to update the project costs and managing changes to the cost baseline is called
Answer: B
Hint: Page 193, PMBOK 5
(14) The Project Cost Management Process comprises the following activities:
a. Determine Budget
b. Plan Cost Management
c. Estimate Costs
d. Control Costs
What is the correct sequence?
Answer: C
Hint: See Figure 7-1, Page 194, PMBOK 5
(15) The process of developing an approximation of the monetary resources needed to complete project activities is known as
Answer: A
Hint: Page 193, PMBOK 5
(16) Which one of the following is not an input used in the process of Estimate Costs?
Answer: D
Hint: See Figure 7-1, Page 194, PMBOK 5
(17) The tools and techniques used in the process of Determine Budget includes all but
Answer: B
Hint: See Figure 7-1, Page 194, PMBOK 5
(18) Which of the following output of Determine Budget process is not used as an input in the Control Costs Process?
Answer: B
Hint: See Figure 7-1, Page 194, PMBOK 5
(19) Which of the following is not an output of the Control Costs process?
Answer: C
Hint:Hint: See Figure 7-1, Page 194, PMBOK 5
(20) The tools and techniques used in Control costs includes all but
Answer: D
Hint: See Figure 7-1, Page 194, PMBOK 5