You are managing a project with a total budget of $450,000. According to the schedule, your team should have completed 45% of the work by now. But at the latest status meeting, the team only reported that 40% of the work has actually been completed. The team has spent $165,000 so far on the project. How would you best describe this project?
A. The project is ahead of schedule and within its budget.
B. The project is behind schedule and within its budget.
C. The project is ahead of schedule and over its budget.
D. The project is behind schedule and over its budget.
Answer: Let's look at the schedule. Should be 45% complete, we are 40% complete. SPI = EV/PV = 40% / 45% = 0.89 < 1. We are behind schedule.
Now to budget. CPI = EV/AC = (40% x $450,000) / $165,000 = 1.09. We are within budget.
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PMP Chapter 6
- You've been hired by a large consulting firm to evaluate a software project for them. You have access to the CPI and EV for the project, but not the AC. The CPI is .92 and the EV is $172,500. How much money has actually been spent for the project?
- You have been asked to select between three projects. Project A has a net present value of $54,750 and will take six months to complete. Project B has a net present value of $85,100 and will take two years to complete. Project C has a net present value or $15,000 and a benefit-cost ratio of 5:2. Which project should you choose?
- You are the project manager for a railroad construction project. Your sponsor has asked you for a forecast for the cost of project completion. Which of the following is the BEST metric to use for forecasting?
- You are managing a project with a schedule performance index (SPI) of 1.07 and a cost performance index (CPI) of .94. How would you BEST describe this project?
- You are managing a project with AC = $25,100 , ETC = $45,600 , VAC = -$2,600, BAC = $90,000, and EAC = $92,100. Your sponsor asks you to forecast how much money you expect to spend on the remainder of the project. Which is the BEST estimate to use for this forecast?
- You are managing a project with an EV of $15,000, PV of $12,000, and AC of $11,000. How would you BEST describe this project?
- You are managing a construction project to install new door frames in an office building. You planned on spending $12,500 on the project, but your costs are higher than expected, and now you're afraid that your project is spending too much money. What number tells you the difference between the amount of money you planned on spending and what you've actually spent so far on the project?
- You are managing a construction project that is currently being initiated. You met with the sponsors and several important stakeholders, and have started to work on the preliminary scope statement. You've documented several key assumptions that have been made, and identified project constraints and initial risks. Before you can finish the preliminary scope statement, you must make a rough order of magnitude estimate of both time and cost so that the sponsor can allocate the final budget. What is the range of a rough order of magnitude (ROM) estimate?
- You are the project manager for a railroad construction project. Your Sponsor has asked you for a forecast for the cost of project completion. The project has a total budget of $80,000 abd CPI of .95 . The project has spent $25,000 of its budget so far. How much more money do you plan to spend on the project?
- A project manager needs to analyze the project costs to find ways to decrease costs. It would be BEST if the project manager looks at:
- Cost risk means:
- You provide a project cost estimate for the project to the project sponsor. He is unhappy with the estimate, because he thinks the price should be lower. He asks you to cut 15 percent off the project estimate. What should you do?
- The difference between the cost baseline and the cost budget can be BEST described as:
- You are about to take over a project from another project manager and find out the following information about the project. Activity Z has an early start (ES) of day 15 and a late start (LS) of day 20. Activity Z is a difficult activity. The cost performance index (CPI) is 1.1. The schedule performance index (SPI) is 0.8. There are 11 stakeholders on the project. Based on this information, which of the following would you be the MOST concerned about?
- Earned value analysis is an example of:
- Although the stakeholders thought there was enough money in the budget, halfway through the project the cost performance index (CPI) is 0.7. To determine the root cause, several stakeholders audit the project and discover the project cost budget was estimated analogously. Although the activity estimates add up to the project estimate, the stakeholders think something was missing in how the estimate was campleted. Which of the following describes what was missing? A. Estimated costs should be used to measure CPI B. SPI should be used, not CPI C. Bottom-up estimating should have been used D. Past history was not taken into account Answer C
- A manufacturing project has a schedule performance index (SPI) of 0.89 and a cost performance index (CPI) of 0.91. Generally, what is the BEST explanation for why this occurred?
- A cost management plan contains a description of:
- Monitoring cost expended to date in order to detect variances from the plan occurs during:
- The project manager is allocating overall cost estimates to individual activities to establish a baseline for measuring project performance. What process is this?
- You have just completed the initiating processes of a small project and are moving into the planning processes when a project stakeholder asks you for the projects budget and cost baseline. What should you tell her?
- Early in the life of your project, you are having a discussion with the sponsor about what estimating techniques should be used. You want a form of expert judgment, but the sponsor argues for analogous estimating. It would be BEST to:
- A new store development project requires the purchase of various equipment, machinery, and furniture. The department responsible for the development recently centralized its external purchasing process and standardized its new order system. In which document can these new procedures be found?
- Your cost forecast shows that you will have a cost overrun at the end of the project. Which of the following should you do?