67%(3)2 out of 3 people found this document helpful
This preview shows page 420 - 423 out of 914 pages.
5. Which of the following is likely to be considered as an environmental factor that could affect the planning of costs? A. Scope B. Schedule C. Pre-approved financial resources provided in the charter D. Resource productivity 6. Immediately after you submitted the estimates and the project management plan for approval, your CEO asks you for a 10% reduction on overall project costs. What is the best thing to do? A. Provide the most realistic estimate along with its basis and explain the risks of reductions B. Reduce the estimates to meet the 10% reduction, but document the risks associated with this reduction C. Perform a value analysis D. Do not reduce the activity cost estimates, but decrease the project contingency reserve to meet the 10% reduction request 418
Based on the Sixth Edition of the PMBOK® GuidePROJECT COST MANAGEMENT 7. You are a project manager on a large project that would involve work being performed in multiple geographies. Which of the following would be the most significant cost risk to this project? A. Global demand and supply B. Exchange rates and inflation C. The project schedule D. Low quality 8. You know that it takes an average of 5 centilitres of tar per square meter of surface. This informa-tion is best suited for which type of estimating technique? A. Analogous B. Life cycle costing C. Parametric D. Learning Curve 9. Experiences from past projects of a similar nature guide you to ensure that the effort for rework must be accounted and planned for within the project budget. What would be the best course of action to account for expected rework? A. Estimate and include a management reserve in the budget B. Estimate and include a contingency reserve while estimating costs C. Perform rework as part of unpaid overtime D. Do not plan for rework now. Request for additional funds when rework does occur 419
PROJECT COST MANAGEMENT Based on the Sixth Edition of the PMBOK® Guide10. The project manager and sponsor have decided to provision $100,000/- to deal with project emer-gencies that have not been anticipated. They ask you to accommodate this figure into the project documents. What would you do next? A. Add $100,000 to the project budget in addition to the cost baseline B. Include $100,000 in the cost baseline and update associated documents C. Make a note of it and post it to the sticky note board D. There is no need to update any project document at this stage