Quiz Planning-Cost

Your project analyst has completed and provided you the first draft of your project’s cost estimate. As you evaluate the cost estimate documentation, you find multiple cost estimate values that do not make sense. In order to understand the logic used in calculating the estimate, you schedule a meeting with the analyst. Which document did the analyst not provide you that would have assisted you in answering your questions?

In creating the cost management plan, the project manager evaluated the project charter for pre-approved resources and evaluated the schedule management plans to determine how the schedule will impact cost management. Before fully completing the cost management plan, what is the last key input that the project manager must assess?

Shortly after your team completed the definition of the project’s cost baseline a key stakeholder, a sales manager, requests that you add an additional feature to the project. The stakeholder believes that the additional feature will help him land a very lucrative client. In discussing the scenario with your cost analyst, you determine that the potential increase in revenue exceeds the cost of building the feature by a factor of four. What action should you, as the Project Manager, take next?

You direct every project team that you manage to continually evaluate and refine the project’s cost estimate. As a project progresses you define to your team that the rough order of magnitude of the estimates should improve. What expected range of estimates would you advise your team to expect in the later stages of the project?

Which of the following is the incorrect method to plan for a contingency reserve as part of the Estimate Costs process?

Over the past two weeks, your team has continually refined the schedule network diagram for your project. With each revision, the team has also made adjustments to the cost estimate. You have directed your team to continually reassess the cost estimates of your project, even after the schedule and cost estimates have been defined. As your project progresses, what do you expect to happen to the accuracy of the estimates?

What is the cost variance of a project if the earned value is $1,000, actual amount spent is $950, and planned value is $1,000?

Recent technology advances have presented an opportunity in the market that your company aims to capitalize on. As the project manager of the key product development project in this effort, you feel significant pressure to deliver positive results. Your sponsor has stated that his primary concern is to beat all competitors to market and reap the reward of the first mover advantage. Your team has worked seven days a week to finalize the scope and schedule and is projected to finish estimating costs within two weeks. Your sponsor has questioned you multiple times as to why your team has not started project work. He is now demanding that you take two resources off the cost estimating process and begin executing project activities, as the total cost of the project is not of primary importance to him. What action should you take?

Your team has provided you the project’s cost estimates for review. To assist in your analysis, they have also provided you multiple documents that they utilized in creating the estimates and that helped detail the factual foundations on which the estimates are based. Which of the following documents or information are you least likely to find in the information provided?

The most recent work performance data generated by the project was used to calculate that the project is operating with an earned value to actual cost ratio of 1.1. As the project manager, how will you summarize this information to summarize the project current performance?