Cost management questions

Submitted by NISHA on Sat, 06/27/2015 - 19:16

  Hi Guys,

I am getting confused with some of these answers,Please help me answering these questions to clear my concept:-(

 

  1. Reserve Analysis a technique NOT used in:
    1. Estimate Costs
    2. Determine Budget
    3. Control Costs
    4. Estimate Activity Duration
  2. _______ is not part of the Earned Value calculations.
    1. Known Unknowns
    2. Unknown Unknowns
    3. Project Budget
    4. Amount of work completed
  3. What is the BEST way to make an accurate forecasting of ETC?
    1. Manual Forecasting of cost of remaining work.
    2. BAC – EV
    3. (BAC – EV)/CPI
    4. EAC - AC
  4. Which of the following is not done as part of Performance Measurements?
    1. Calculating Planned Value
    2. Calculating Earned Value
    3. Calculating ETC
    4. Calculating Cost Variance
  5. A particular project in the domain of civil construction requires that every on-site worker be insured. Which of the following inputs BEST conveys this requirement to the Cost Estimation process so that the insurance cost is estimated and subsequently budgeted?
    1. Enterprise Environmental Factor
    2. Organizational Process Assets
    3. Project Scope Statement
    4. Project Management Plan
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oorvashe

Sun, 06/28/2015 - 09:38

Hi Nisha,

 

Good day. what is the source of the questions. I passed PMP on 26th June 2015 and only pmstudy and pm exam simulator are similar to real exam. Real exam has excellent questions and very tricky. Have you tried scordo questions. there are 18 chapters which has 50 questions each.

I just practised 12 chapters from scordo, pm study questions and pm exam simulator(paid one which had 1800 questions and is close to real exam. the exam is available knowledge area wise, process groupwise).

 

NISHA

Tue, 06/30/2015 - 06:50

Source of this question is below.

http://preparepm.com/pmp/cost.html

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admin

Wed, 07/01/2015 - 03:02

The answers are given on same page, which question / answer you are confused with and why ?

NISHA

Wed, 07/01/2015 - 05:52

Hi..

I am confused due to these points.

1-Reserve analysis is the tool and technique in all these processes.

2-Uknown-Uknown is not the part of Earned value calculation

3Manual Forecasting of cost of remaining work or it is intended to say re-estimating.

4-Calculating Earned Value is not part of performance measurement?

5-If it is requires that everyone on site should be insured. Does not this come as Enterprise Environmental Factor?

Nisha

oorvashe

Wed, 07/01/2015 - 11:16

1. Reserve Analysis is to analyse the contingency reserve as to how much is utilised and how much more is required for future.
2. reserves used for unknown-unknown is called management reserve. This is part of budget and not included in cost baseline. while contingency reserve is part of both budget and cost baseline.
3.Manual forecasting(bottom up estimating) is done when all the previous cost is incorrect.
4.Earn value management is commonly used method of performance measurement.
5. "requires that every on-site worker be insured" This is a regulation or rule which is part of EEF.
 

NISHA

Wed, 07/01/2015 - 11:26

Thank you oorvashe..for the reply..Actually i am confused with the question itself.

  1. Reserve Analysis a technique NOT used in:
    1. Estimate Costs
    2. Determine Budget
    3. Control Costs
    4. Estimate Activity Duration

My observation-Reserve analysis is the T & T in all these procsses.so how can we choose on e where it is not.

  1. is not part of the Earned Value calculations.
    1. Known Unknowns
    2. Unknown Unknowns
    3. Project Budget
    4. Amount of work completed

My observation-This i can understand i beleive that if it is Unknown Unknowns,We cant forecaste anything.

  1. What is the BEST way to make an accurate forecasting of ETC?
    1. Manual Forecasting of cost of remaining work.
    2. BAC – EV
    3. (BAC – EV)/CPI
    4. EAC - AC

My observation-Thank you for this I didnot know that Manual estimating is bottom up estimating.

  1. A particular project in the domain of civil construction requires that every on-site worker be insured. Which of the following inputs BEST conveys this requirement to the Cost Estimation process so that the insurance cost is estimated and subsequently budgeted?
    1. Enterprise Environmental Factor
    2. Organizational Process Assets
    3. Project Scope Statement
    4. Project Management Plan

My observation-If it is mandatory that all the on-site staff should be insuredd shold be EEF but the answer given is C(Project statement).

Please suggest.

Source-http://preparepm.com/pmp/cost.html

Thankk you

Nisha

oorvashe

Wed, 07/01/2015 - 12:10

As i said in my early post, dont waste time in these questions. I took PMP last friday and there are no questions like this...

NOT means...three answers are related and one is not.

Try PMStudy(free and sample version available) or pm exam simulator(170 questions free for 3 days and if  you pay you get 1800 questions) and try to score 80% you will defnitely pass the exam. You can also try Scordo tests (1000 questions) free if you are a PMI member.

NISHA

Wed, 07/01/2015 - 14:25

Thank you so much oorvashe..I am sure you are right..

Will follow the same..

It has been a great help..

Thank you so much..

Nisha..

pmalik

Fri, 09/22/2017 - 09:07

These are all EVM Questions. For help in answering these questions you should read the following articles:
Earned Value Management Formulas
Estimate to Complete – 3 ETC Formulas For PMP Exam
Earned Value Management System Explained in Easy Language
To Complete Performance Index – TCPI Formula & Calculations Explained
Estimate At Completion – 5 EAC Formulas for PMP Exam
Basics of Earned Value Analysis

Sanjay Kumar's picture

Sanjay Kumar

Sat, 05/19/2018 - 06:45

A Facebook page will help you to increase your knowledge about PMP. And A free Cost Management Test at Testudaan is available.