1. A. Determining the cost of resources (not the amount) to complete all the activities for the project is the primary concern of the Project Cost Management Knowledge Area.
2. D. The cost management plan is used to establish the criteria for planning, estimating, budgeting, and controlling costs.
3. D. Control thresholds are variance thresholds (typically stated as a percentage of deviation from the baseline) used for monitoring cost performance.
5. A. The inputs of Estimate Costs are scope baseline, project schedule, human resource plan, risk register, enterprise environmental factors, and organizational process assets.
6. B. Three-point estimates can improve activity cost estimates because they factor in estimation uncertainty and risk.
7. A. Reserve analysis accounts for cost uncertainty by including a contingency reserve, usually expressed as a percentage of the estimated cost.
8. C. The expected activity cost is calculated this way: (4 * most likely + optimistic + pessimistic) / 6. Therefore, the answer is (4 * 42 + 35 + 54) / 6 = 43.
9. C. Future period operating costs are considered ongoing costs and are not part of project costs.
10. B. Bottom-up techniques are the most time consuming and generally the most accurate estimates you can use. With bottom-up estimating, each work item is estimated and rolled up to a project total.
11. A. Funding limit reconciliation concerns reconciling the funds to be spent on the project with funding limits placed on the funding commitments for the project.
12. B. The cost performance baseline is displayed as an S curve because of the way project spending occurs. Spending begins slowly, picks up speed until the spending peak is reached, and then tapers off as the project winds down.
13. D. Cost of quality is a tool and technique of Estimate Costs. The tools and techniques of Determine Budget are cost aggregation, reserve analysis, expert judgment, historical relationships, and funding limit reconciliation.
14. A. Analogous—or top-down—estimating techniques are a form of expert judgment. Since this project is similar to another recent project, you can use the cost estimates from the previous project to help you quickly determine estimates for the current project.
15. B. There are 28 channels of communication, which is considered when using the communications requirements analysis tool and technique.
16. D. Communications requirements analysis, communication technology, communication models, and communication methods are the tools and techniques of the Plan Communications process.
17. C. Acknowledgment means the receiver has received the message but does not mean they agree with the message.
18. A. Push communication assures that information is distributed to specific recipients but does not certify that it was understood by the intended recipients.
19. B. This describes interactive communication. It is a communication method, which is a tool and technique of Plan Communications.
20. C. Reasons for the distribution of information belong in the communications management plan.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.