C722 Practice Questions with 100% Verified
Correct Answers
Risk Mitigation
When the team acts in some fashion to reduce the impact or likelihood of the risk occurring.
Pg 95
Risk Acceptance
A risk response strategy whereby the project team decides to acknowledge the risk and not
take any action unless the risk occurs.
Risk Transference
The act of shifting the responsibility of risk to another in the form of an insurance contract.
Risk Avoidance
A risk response strategy whereby the project team acts to eliminate the threat or protect the
project from its impact.
Contingency Reserves
Dollar amounts included in a cost estimate to allow for future situations that may be partially
planned for (sometimes called known unknowns) and that are included in the project cost
baseline
Budget Estimates
the projected dollar amounts in a budget that one plans to receive or spend during the period
covered by the budget. -10% - +25%
Activity estimates
, Sum of the cost estimates of all activities of the project
Cost performance index
The process of calculating the costs, by category, of the identified resources to complete the
project work.
CPI = EV/AC
schedule performance index
A measure of schedule efficiency expressed as the ratio of earned value to planned value.
SPI = EV/PV
Earned Value
The measure of work performed expressed in terms of the budget authorized for that work.
Actual Cost
The realized cost incurred for the work performed on an activity during a specific time
period.
Planned Value
The worth of the work that should be completed by a specific time in the project schedule.
Budget at Completion
The predicted budget for the project; what the project should cost when it is completed.
Budget at completion represents 100 percent of the planned value for the project's
completion.
BAC
Cost Variance
Correct Answers
Risk Mitigation
When the team acts in some fashion to reduce the impact or likelihood of the risk occurring.
Pg 95
Risk Acceptance
A risk response strategy whereby the project team decides to acknowledge the risk and not
take any action unless the risk occurs.
Risk Transference
The act of shifting the responsibility of risk to another in the form of an insurance contract.
Risk Avoidance
A risk response strategy whereby the project team acts to eliminate the threat or protect the
project from its impact.
Contingency Reserves
Dollar amounts included in a cost estimate to allow for future situations that may be partially
planned for (sometimes called known unknowns) and that are included in the project cost
baseline
Budget Estimates
the projected dollar amounts in a budget that one plans to receive or spend during the period
covered by the budget. -10% - +25%
Activity estimates
, Sum of the cost estimates of all activities of the project
Cost performance index
The process of calculating the costs, by category, of the identified resources to complete the
project work.
CPI = EV/AC
schedule performance index
A measure of schedule efficiency expressed as the ratio of earned value to planned value.
SPI = EV/PV
Earned Value
The measure of work performed expressed in terms of the budget authorized for that work.
Actual Cost
The realized cost incurred for the work performed on an activity during a specific time
period.
Planned Value
The worth of the work that should be completed by a specific time in the project schedule.
Budget at Completion
The predicted budget for the project; what the project should cost when it is completed.
Budget at completion represents 100 percent of the planned value for the project's
completion.
BAC
Cost Variance
