Pmp 2027 Update With Complete Solutions

PMP 2027 UPDATE WITH COMPLETE SOLUTIONS

Question 1.
Earned Value (EV)

Correct Answer: The measure of work performed expressed in terms of the
budget authorized for that work. BAC x % Work Completed


Question 2.
Planned Value (PV)

Correct Answer: The portion of the approved total cost estimate planned to be
spent on an activity during a given period. Planned % Complete x BAC


Question 3.
Actual Cost (AC)

Correct Answer: The realized cost incurred for the work performed on an activity
during a specific time period.


Question 4.
Budget at Completion (BAC)

Correct Answer: The sum of all budgets established for the work to be
performed.


Question 5.
Estimate to Complete (ETC)

Correct Answer: The expected cost to finish all the remaining project work. EAC -
AC


Question 6.
Estimate at Completion (EAC)

Correct Answer: The expected total cost of completing all work expressed as the
sum of the actual cost to date and the estimate to complete. BAC / CPI


Question 7.
Cost Performance Index (CPI)

Correct Answer: A measure of the cost efficiency of budgeted resources
expressed as the ratio of earned value to actual cost. EV / AC

,Question 8.
Schedule Performance Index (SPI)

Correct Answer: A measure of schedule efficiency expressed as the ratio of
earned value to planned value. EV / PV


Question 9.
To-Complete Performance Index (TCPI)

Correct Answer: A measure of the cost performance that is required to be
achieved with the remaining resources in order to meet a specified management
goal, expressed as the ratio of the cost to finish the outstanding work to the
remaining budget. (BAC - EV) / (BAC - AC)


Question 10.
Cost Variance (CV)

Correct Answer: EV - AC Negative is over budget; positive is under budget


Question 11.
Schedule Variance (SV)

Correct Answer: EV - PV Negative is behind schedule; positive is ahead of
schedule


Question 12.
Variance at Completion (VAC)

Correct Answer: A projection of the amount of budget deficit or surplus,
expressed as the difference between the budget at completion and the estimate
at completion. BAC -EAC


Question 13.
Economic Value Added (EVA)

Correct Answer: Net operating profit after taxes minus (capital x cost of capital);
a measure of the economic value of an investment or project


Question 14.
Future Value (FV)

Correct Answer: the value of future cash flows discounted at the appropriate
discount rate FV = PV(1+r)^n

,Question 15.
Return on Invested Capital (ROIC)

Correct Answer: Net income after tax / Invested Tax (smaller is better)


Question 16.
Order of Magnitude Estimate

Correct Answer: A high-level estimate of the time and cost of a project based on
the actual cost and duration of a similar project. -50% to +100%


Question 17.
Conceptual Estimate

Correct Answer: a cost estimate based on very little design information and
using gross unit pricing to determine the project cost. -30% to +50%


Question 18.
Preliminary Estimate

Correct Answer: -20% to +30% estimate range


Question 19.
Definitive Estimate

Correct Answer: -15% to +20% estimate range


Question 20.
Control Estimate

Correct Answer: -10% to +15% estimate range


Question 21.
Delphi Technique

Correct Answer: A decision-making technique in which group members do not
meet face-to-face but respond in writing to questions posed by the group
leader. Prevents biasing opinions and groupthink.


Question 22.
Nominal Group Technique

Correct Answer: Brainstormed ideas are voted upon and sorted by priority

, Question 23.
Scope Baseline

Correct Answer: The approved version of a scope statement, work breakdown
structure (WBS), and its associated WBS dictionary, that can be changed only
through formal change control procedures and is used as a basis for
comparison.


Question 24.
Baseline

Correct Answer: The original plan plus all approved changes (scope, schedule,
cost)


Question 25.
Functional Organization

Correct Answer: Departmentalization around specialized activities such as
production, marketing, and human resources.


Question 26.
Projectized Organization

Correct Answer: Any organizational structure in which the project manager has
full authority to assign priorities, apply resources, and direct the work of
persons assigned to the project.


Question 27.
Matrix Organization

Correct Answer: An organization in which specialists from different parts of the
organization are brought together to work on specific projects but still remain
part of a line-and-staff structure. Strong, Balanced, and Weak, where in strong
PM has power.


Question 28.
Project Scope Statement

Correct Answer: The description of the project scope, major deliverables,
assumptions, and constraints. Includes product scope description, acceptance
criteria and project exclusions.


Question 29.
Work Breakdown Structure (WBS)