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PMP PROJECT COST MANAGEMENT EXAM PRACTICE QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS) PLUS RATIONALE Q&A.
Batch 1 of 4: Questions 1–50
1. Which process involves developing an approximation of the
monetary resources needed to complete project activities?
A) Determine Budget
B) Estimate Costs
C) Control Costs
D) Plan Cost Management
Correct Answer: B
Rationale: Estimate Costs is the process of developing an approximation
of the monetary resources needed to complete project work.
Determine Budget aggregates these estimates, while Control Costs
monitors them.
2. The process of aggregating the estimated costs of individual activities
or work packages to establish an authorized cost baseline is called:
,A) Estimate Costs
B) Control Costs
C) Determine Budget
D) Plan Cost Management
Correct Answer: C
Rationale: Determine Budget is the process of aggregating estimated
costs to establish an authorized cost baseline against which project
performance is measured.
3. Which of the following is the primary output of the Plan Cost
Management process?
A) Cost baseline
B) Cost management plan
C) Cost estimates
D) Project funding requirements
Correct Answer: B
,Rationale: The Cost Management Plan is the sole primary output of
Plan Cost Management. It describes how project costs will be planned,
structured, and controlled.
4. Which of the following is NOT an input to the Estimate Costs
process?
A) Project management plan
B) Project documents
C) Cost baseline
D) Enterprise environmental factors
Correct Answer: C
Rationale: The Cost Baseline is an output of Determine Budget, not an
input to Estimate Costs. It is created after cost estimates are
developed.
5. The cost management plan is part of which broader project
document?
A) Project charter
, B) Project management plan
C) Business case
D) Benefits management plan
Correct Answer: B
Rationale: The Cost Management Plan is a subsidiary plan that is part of
the overall Project Management Plan.
6. Which estimating technique uses historical data from similar projects
to estimate costs?
A) Bottom-up estimating
B) Analogous estimating
C) Parametric estimating
D) Three-point estimating
Correct Answer: B
Rationale: Analogous estimating uses parameters from a similar past
project, such as scope, cost, budget, and duration, to estimate the
current project. It is less accurate but faster and cheaper.
PMP PROJECT COST MANAGEMENT EXAM PRACTICE QUESTIONS AND
CORRECT ANSWERS (VERIFIED ANSWERS) PLUS RATIONALE Q&A.
Batch 1 of 4: Questions 1–50
1. Which process involves developing an approximation of the
monetary resources needed to complete project activities?
A) Determine Budget
B) Estimate Costs
C) Control Costs
D) Plan Cost Management
Correct Answer: B
Rationale: Estimate Costs is the process of developing an approximation
of the monetary resources needed to complete project work.
Determine Budget aggregates these estimates, while Control Costs
monitors them.
2. The process of aggregating the estimated costs of individual activities
or work packages to establish an authorized cost baseline is called:
,A) Estimate Costs
B) Control Costs
C) Determine Budget
D) Plan Cost Management
Correct Answer: C
Rationale: Determine Budget is the process of aggregating estimated
costs to establish an authorized cost baseline against which project
performance is measured.
3. Which of the following is the primary output of the Plan Cost
Management process?
A) Cost baseline
B) Cost management plan
C) Cost estimates
D) Project funding requirements
Correct Answer: B
,Rationale: The Cost Management Plan is the sole primary output of
Plan Cost Management. It describes how project costs will be planned,
structured, and controlled.
4. Which of the following is NOT an input to the Estimate Costs
process?
A) Project management plan
B) Project documents
C) Cost baseline
D) Enterprise environmental factors
Correct Answer: C
Rationale: The Cost Baseline is an output of Determine Budget, not an
input to Estimate Costs. It is created after cost estimates are
developed.
5. The cost management plan is part of which broader project
document?
A) Project charter
, B) Project management plan
C) Business case
D) Benefits management plan
Correct Answer: B
Rationale: The Cost Management Plan is a subsidiary plan that is part of
the overall Project Management Plan.
6. Which estimating technique uses historical data from similar projects
to estimate costs?
A) Bottom-up estimating
B) Analogous estimating
C) Parametric estimating
D) Three-point estimating
Correct Answer: B
Rationale: Analogous estimating uses parameters from a similar past
project, such as scope, cost, budget, and duration, to estimate the
current project. It is less accurate but faster and cheaper.
