PMP Prep Practice Questions – Control Costs (PMBOK® Guide: Section 7.4)

Question 1

The District government is working on a program for enhancement of Design and Analysis capability of graduate engineers. It has planned to establish 4 Design and Analysis Institutes in 4 cities. Budget was allocated and the projects have been executed. In the final program review, You as a program sponsor are presented with the following data for the 4 projects that are executed. — PROJECT-1: PV = $10,000; AC = $11,000; EV = $10,000 — PROJECT-2:  PV = $9,000; AC = $8,000; EV = $7,000 — PROJECT-3: PV = $8,000; AC = $8,000; EV = $8,000 — PROJECT-4: PV = $7,000; AC = $7,000; EV = $5,000. Which project is most over budget?

Question 2

A $30,000 construction project of ten-months duration has been analysed during the six monthly update. The following has been presented befor the management board. Cumulative PV is $20,000, the cumulative AC is $10,000, and the cumulative EV is $15,000. In planning its action, management can conclude all of the following from these figures EXCEPT:

Question 3

An EPCC consultant organization is involved in a highly political project where some high profile stakeholders have conflicting interests. You have been appointed as a Project Manager and you are preparing a report regarding cost management of the project. All of the following factors are to be taken care of under your cost control function, EXCEPT?

Question 4

The EAC is the projected total final value for a schedule activity, WBS component, WBS component, or the entire project when the defined work of the project is completed. To determine the EAC, assuming no management intervention, which of the following information is needed?

Question 5

Your 13 months duration project for setting up a Tools and Dies manufacturing facility in an industrial estate is 4 months into its planned duration. The project sponsor organization has an emergency situation where they have demanded an immediate financial support out of the current projects’ budgets. Your project dashboard indicates that you are at least 9% ahead of your allocated budget. Which of the following represents this fact?