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1. Answer D

Explanation

This formula for EAC is used if no variances from the BAC have occurred or you will continue at the same rate of spending (as calculated in your cumulative CPI). You have to remember the formula to get the answer correct.

2. Answer C

Explanation

When you look at earned value, many of the terms have similar definitions. This could get you into trouble. EAC means the estimate at completion. What it will cost to finish the project is the definition of ETC, or estimate to complete.

3. Answer D

Explanation

The formula is CV = EV - AC. Therefore, CV = 350 - 400, or CV = -50.

4. Answer D

Explanation

Presenting anything other than your original estimate (allocating more to the budget) is inaccurate and calls into question your competence and integrity as a project manager. The customer should list potential changes and risks related to your estimate. If the costs and risks are justified, you can increase the budget.

5. Answer C

Explanation

Analogous estimating is used most frequently during project planning, not project executing. Parametric estimating involves calculations based on historical records. Analogous estimating uses top-down estimating techniques.

6. Answer B

Explanation

This question is asking, “When you finish estimating costs, what do you have?” Many people who do not realize that estimates should be in a range pick that option. Documentation of assumptions is referring to the basis of estimates, which is an output of Estimate Costs. The prevention of inappropriate changes is more correctly part of the cost management plan and the change control system.

7. Answer D

Explanation

Life cycle costing looks at operations and maintenance costs and balances them with the project costs to try to reduce the cost across the entire life of the project.

8. Answer B

Explanation

Asking percent complete is not a best practice since it is usually a guess. Often the easiest work is done first on a project, throwing off any percentage calculations of work remaining. The life cycle cost cannot be lower than the project cost, as the life cycle cost includes the project cost. Focusing on the amount spent last month and what will be spent in the next month is often done by inexperienced project managers. Not only does this provide little information, but the data cannot be used to predict the future. Using earned value and other calculations is the best answer since this choice looks at the past and uses that information to estimate future costs.

9. Answer D

Explanation

The CPI is less than one, so the situation is bad. The project is only getting 89 cents out of every dollar invested.

10. Answer C

Explanation

Earned value questions ask for a calculation or an interpretation of the results. In this case, the project is progressing at 76 percent of the rate planned.

11. Answer D

Explanation

You need the WBS to define the activities, the network diagram to see the dependencies, and the risks to determine contingencies. NOTE: These are high-level risks, not the detailed risks we identify later in project planning. Change requests are not required to obtain estimates, although they could cause existing estimates to be adjusted. Without the other three choices, you cannot develop the estimates.

12. Answer A

Explanation

Parametric estimates use a mathematical model to predict project cost or time.

13. Answer D

Explanation

This estimate has a wide range.

Explanation

This formula for EAC is used if no variances from the BAC have occurred or you will continue at the same rate of spending (as calculated in your cumulative CPI). You have to remember the formula to get the answer correct.

2. Answer C

Explanation

When you look at earned value, many of the terms have similar definitions. This could get you into trouble. EAC means the estimate at completion. What it will cost to finish the project is the definition of ETC, or estimate to complete.

3. Answer D

Explanation

The formula is CV = EV - AC. Therefore, CV = 350 - 400, or CV = -50.

4. Answer D

Explanation

Presenting anything other than your original estimate (allocating more to the budget) is inaccurate and calls into question your competence and integrity as a project manager. The customer should list potential changes and risks related to your estimate. If the costs and risks are justified, you can increase the budget.

5. Answer C

Explanation

Analogous estimating is used most frequently during project planning, not project executing. Parametric estimating involves calculations based on historical records. Analogous estimating uses top-down estimating techniques.

6. Answer B

Explanation

This question is asking, “When you finish estimating costs, what do you have?” Many people who do not realize that estimates should be in a range pick that option. Documentation of assumptions is referring to the basis of estimates, which is an output of Estimate Costs. The prevention of inappropriate changes is more correctly part of the cost management plan and the change control system.

7. Answer D

Explanation

Life cycle costing looks at operations and maintenance costs and balances them with the project costs to try to reduce the cost across the entire life of the project.

8. Answer B

Explanation

Asking percent complete is not a best practice since it is usually a guess. Often the easiest work is done first on a project, throwing off any percentage calculations of work remaining. The life cycle cost cannot be lower than the project cost, as the life cycle cost includes the project cost. Focusing on the amount spent last month and what will be spent in the next month is often done by inexperienced project managers. Not only does this provide little information, but the data cannot be used to predict the future. Using earned value and other calculations is the best answer since this choice looks at the past and uses that information to estimate future costs.

9. Answer D

Explanation

The CPI is less than one, so the situation is bad. The project is only getting 89 cents out of every dollar invested.

10. Answer C

Explanation

Earned value questions ask for a calculation or an interpretation of the results. In this case, the project is progressing at 76 percent of the rate planned.

11. Answer D

Explanation

You need the WBS to define the activities, the network diagram to see the dependencies, and the risks to determine contingencies. NOTE: These are high-level risks, not the detailed risks we identify later in project planning. Change requests are not required to obtain estimates, although they could cause existing estimates to be adjusted. Without the other three choices, you cannot develop the estimates.

12. Answer A

Explanation

Parametric estimates use a mathematical model to predict project cost or time.

13. Answer D

Explanation

This estimate has a wide range.

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