Reference no: EM132642611

Question 1. Identify two areas where the WBS structure does not exhibit good WBS structural characteristics. How would you modify the WBS to resolve each issue?

Question 2. Which WBS elements should be assigned resources?
A. All WBS elements.
B. All elements at the X.X level, (e.g., 1.1, 1.2, etc.).
C. All elements at the X.X.X level (e.g., 2.1.1, 2.1.2, etc.).
D. All elements at the X.X.X.X level (e.g. 1.1.1.1, 1.1.2.1, etc.).
E. All work packages.
Question 3. Your company has appointed you the project manager for its new product line introduction. The product line involves three products, two of which will be introduced together and a third one that will follow within two years. You are ready to create the WBS. All of the following statements are true except:
A. The WBS may be structured using each product as a level one entry.
B. The WBS should be elaborated to a level where costs and schedule are easily estimated. This is known as the work package level.
C. Rolling wave refers to how all levels collectively roll up to reflect the work of the project and only the work of the project.
D. Each level of the WBS represents verifiable products or results.

Question 4. As the project finance manager, you have given the project manager a numbering system t assign to the WBS for a new project. Which of the following is true?
A. The numbering system is a unique identifier known as the WBS dictionary, which is used to assign quality control codes to the individual work elements.
B. The numbering system is a unique identifier known as the WBS dictionary, which is used to track the descriptions of individual work elements.
C. The numbering system is a unique identifier known as the code of accounts, which is used to track time and resource assignments for individual work elements.
D. The numbering system is a unique identifier known as the code of accounts, which is used to track the costs of the WBS elements.

Question 5. You are the project finance manager on a project that is coming in over budget and requires a cost change through the cost change control system. You know all of the following statements are true regarding the Control Costs process except:
A. A description of how cost changes should be managed and controlled is found in the cost management plan.
B. Approved cost changes are reflected in the cost baseline.
C. The equation, (BAC-AC)/(BAC-EV) is used to determine the cost performance that must be realized for the remaining work of the project to meet the BAC goal.
D. The equation, EAC = BAC/cumulative CPI, is used to forecast an estimate at completion assuming future project performance will be the same as past performance.

Question 6. You are the project finance manager and you're preparing your cost management plan. You know all the following are true regarding this plan except:
A. The WBS provides the framework for this plan.
B. Units of measure should be described in the plan usually as hours, days, weeks, or lump sum.
C. The plan is a subsidiary of the project management plan.
D. Control thresholds should be described in the plan as to how estimates will adhere to rounding ($100 or $1000, and so on).

Question 7. Which of the following statements about decomposition is the least true?
A. Decomposition involves structuring and organizing the WBS so that deliverables are always listed at level one.
B. Decomposition requires a degree of expert judgment and also requires a close analysis of the project scope statement.
C. Decomposition is a tool and technique used to create a WBS.
D. Decomposition divides the major deliverables into smaller components until the work package level is reached.

Question 8. Which of the following is displayed as an S-curve?
A. Funding requirements.
B. Cost baseline.
C. Cost estimates.
D. Expenditures to date.

Question 9. A negative result from a Cost Variance (CV) calculation means which of the following:
A. AC is higher than EV.
B. PV = 1.
C. EV is higher than AC.
D. EV is higher than PV.

Question 10. You want to improve your activity cost estimates by taking into account uncertainty and risk. Which of the following tools and techniques will you use?
A. Analogous estimates.
B. Three-point estimating.
C. Parametric estimates.
D. Bottom-up estimates.

Question 11. You are the project finance manager working on the cost baseline for your project. All of the following statements are true except:
A. This process aggregates the estimated costs of project activities.
B. The cost baseline will be used to measure variances and future project performance.
C. This process assigns cost estimates for expected future operating costs.
D. The cost baseline is the time-phased budget at completion for the project.

Question 12. Which of the following might require re-baselining of the cost baseline?
A. Corrective action
B. Revised cost estimates
C. Updates to the cost management plan
D. Budget updates

Question 13. Define Planned Value (PV). What is the relationship between PV and Budget at Completion (BAC)?

Question 14. When are Fixed Formula Earned Value (EV) measurement rules appropriate?

Question 15. What is the difference between percent complete and percent complete with gates Earned value (EV) measurement rules? What advantage does the latter have over the former?

Question 16. Under what conditions would the To-Complete Performance Index (TCPI) formula provide the least useful information?

Question 17. Under what conditions would the high end Estimate at Completion (EAC) formula provide a value numerically less than the low-end EAC formula?

Question 18. In performing an earned value analysis, what does a CV of negative100 and a CPI of 1.02 mean?

Question 19. Describe the cost baseline. What is the difference between the cost baseline and the performance measurement baseline?

Question 20. Describe the relationships among project cost, schedule, and scope.

Question 21. How does earned value give a clearer picture of project schedule and cost status than a simple plan versus actual system?

Question 22. What is a cost account? How is it used?

Question 23. Why is it important to resist changes to the performance measurementbaseline? Under what conditions would changes to the baseline be appropriate? When would changes to the baseline not be allowed?

Question 24. Cost Variance (CV) and Cost Performance Index (CPI) can both be used to determine whether a project is on budget, under budget, or over budget at a particular point in time. Why have two measures for the same thing?