APM PMQ: 22 Budgeting and Cost
Control Exam Questions and Answers
with Verified Solutions | Latest Updated
2026
What does budgeting vs cost The estimation and allocation of
control involve? financial resources required for
project activities while cost control
focuses on monitoring and
managing expenditures throughout
the project life cycle
What do budgeting and cost Project managers to align financial
control enable? resources with project goals,
prevent budget overruns and ensure
optimal use of funds
What does robust budget and The delivery of projects on time and
cost control mechanisms within the allocated financial
ensure? parameters
What two purposes are Support budgeting Cost control
estimates used for in regard to
budgeting?
How are budgets created and - From estimates-Looking at
what criteria do they need to approximation of time and cost to
meet? (2) complete the scope of work to the
required acceptance criteria
, Explain what estimates are To enable budget setting and
used for? considerations of affordability
What do estimates "support"? Judgements to be made on value for
money on solution chosen
What are estimates an Creating a resource schedule which
essential input into? then in turn provides the cost view
of the project
What three things should - The different types of costs
consideration be given to as involved and when they will hit the
part of creating a budget? project so that financing can be
managed accordingly, such as
funding drawdowns at the right time
to cover payment milestones-Any
information required from external
sources such as supplier costs and
how these align to the plan to
enable budgeting-The assumptions
being made about the project and
how they are underpinning the cost
estimates so they can be
understood, validated and budgeted
for
What is used to create the CBS The WBS By taking each of the work
and how? packages defined for the project and
looking at the estimated costs
related to the delivery of each
activity
What does the CBS identify? All activity that has a cost
associated to it, both labour and
Control Exam Questions and Answers
with Verified Solutions | Latest Updated
2026
What does budgeting vs cost The estimation and allocation of
control involve? financial resources required for
project activities while cost control
focuses on monitoring and
managing expenditures throughout
the project life cycle
What do budgeting and cost Project managers to align financial
control enable? resources with project goals,
prevent budget overruns and ensure
optimal use of funds
What does robust budget and The delivery of projects on time and
cost control mechanisms within the allocated financial
ensure? parameters
What two purposes are Support budgeting Cost control
estimates used for in regard to
budgeting?
How are budgets created and - From estimates-Looking at
what criteria do they need to approximation of time and cost to
meet? (2) complete the scope of work to the
required acceptance criteria
, Explain what estimates are To enable budget setting and
used for? considerations of affordability
What do estimates "support"? Judgements to be made on value for
money on solution chosen
What are estimates an Creating a resource schedule which
essential input into? then in turn provides the cost view
of the project
What three things should - The different types of costs
consideration be given to as involved and when they will hit the
part of creating a budget? project so that financing can be
managed accordingly, such as
funding drawdowns at the right time
to cover payment milestones-Any
information required from external
sources such as supplier costs and
how these align to the plan to
enable budgeting-The assumptions
being made about the project and
how they are underpinning the cost
estimates so they can be
understood, validated and budgeted
for
What is used to create the CBS The WBS By taking each of the work
and how? packages defined for the project and
looking at the estimated costs
related to the delivery of each
activity
What does the CBS identify? All activity that has a cost
associated to it, both labour and
