OPRE 3330 TEST 3 QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
(1) Cost Management - Answers The process of estimating, allocating, and controlling project cost.
(1) What are some of the challenges of cost management? - Answers - Lack or resources
- Poor cost estimation
(1) What are the 4 types of cost? - Answers Fixed cost, variable cost, direct cost, and indirect cost.
(1) Fixed cost: - Answers Cost that doesn't change as production changes. EX: rent
(1) Variable cost: - Answers Cost that varies as time progresses EX: materials and supplies
(1) Direct Cost: - Answers Cost that is a direct attribute to the project work EX: salary
(1) Indirect cost: - Answers A cost that is not directly apart of the project EX: lighting, AC, etc.
(1) What are the Cost Management processes? - Answers Plan cost management, estimate costs,
determine budget, control cost.
(1) A cost management plan can establish: - Answers - Units of measure
- Level of precision
- level of accuracy
(1) What are the estimating costs? - Answers - Analogues estimating
- Parametric estimating
- Bottom-Up estimating
- 3-Point estimating
(1) Analogue Estimating: - Answers Measure that projects parameters such as budget, size,
complexity, and duration based on previous projects.
(1) Parametric Estimating: - Answers A mathematical model based on historical records.
(1) Bottom-Up Estimating: - Answers Accurate but costly in terms of time and labor to develop. The
best one.
(1) 3-Point Estimating: - Answers Estimates by taking a weighted average of the 3 estimates using this
formula: (0+4m+P)/6
(1) What are the values of the 3-Point estimating? - Answers - Optimistic Cost
- Most Likely Cost
- Pessimistic Cost
(1) What is Optimistic cost? - Answers The lowest possible cost in which AB activity can be completed
under perfect circumstances.
(1) What is Most Likely Cost? - Answers The most likely costs under normal circumstances.
(1) What is Pessimistic Cost? - Answers The highest possible cost under the worst case scenario.
(1) Reserve Cost: - Answers The extra money in a project budget to be used if necessary. If the risk
occurs, it is classified as either management reserve or contingency reserve.
(2) Estimated Cost: - Answers The total project cost estimates that the project manager makes.
(2) Budgeted Cost: - Answers A budget that the management has prepared and allocated to the
project. (Shows how money is spent)
(2) Cost baseline: - Answers A time-phased budget used to monitor, measure, and control cost
performance during the project.
- It includes Contingency Reserves but not the Management Reserves
(2) Question 1: Determining Budget - Answers
(2) Cost Baseline= - Answers Cost Baseline = Cost Estimate + Contingency Reserve
(2) Project Budget= - Answers Project Budget = Cost Baseline + Management Reserve
(2) Control Costs: - Answers The process of monitoring the status of the project to update the project
costs and managing changing the cost baseline.
(2) Earned Value Management (EVM): - Answers A common method of project performance and
progress measurement throughout the project lifecycle in terms of the cost and schedule control.
(2) EVM compares.... - Answers the budgeted and actual costs to a project
(2) What are EVM's 3 Main Components? - Answers - Planned Value (PV)
- Earned Value (EV)
- Actual Cost (AC)
(2) What is Planned Value? - Answers How far along a project should take.
(2) What is Earned Value? - Answers The work that has actually been performed to date.
(2) What is Actual Cost? - Answers The sum of money spent so far.
(2) Budget at Completion (BAC): - Answers The total budget allocated to the project.
(2) Actual cost is used to calculate...... - Answers Cost variance (CV) and the Cost performance Index.
(1) Cost Management - Answers The process of estimating, allocating, and controlling project cost.
(1) What are some of the challenges of cost management? - Answers - Lack or resources
- Poor cost estimation
(1) What are the 4 types of cost? - Answers Fixed cost, variable cost, direct cost, and indirect cost.
(1) Fixed cost: - Answers Cost that doesn't change as production changes. EX: rent
(1) Variable cost: - Answers Cost that varies as time progresses EX: materials and supplies
(1) Direct Cost: - Answers Cost that is a direct attribute to the project work EX: salary
(1) Indirect cost: - Answers A cost that is not directly apart of the project EX: lighting, AC, etc.
(1) What are the Cost Management processes? - Answers Plan cost management, estimate costs,
determine budget, control cost.
(1) A cost management plan can establish: - Answers - Units of measure
- Level of precision
- level of accuracy
(1) What are the estimating costs? - Answers - Analogues estimating
- Parametric estimating
- Bottom-Up estimating
- 3-Point estimating
(1) Analogue Estimating: - Answers Measure that projects parameters such as budget, size,
complexity, and duration based on previous projects.
(1) Parametric Estimating: - Answers A mathematical model based on historical records.
(1) Bottom-Up Estimating: - Answers Accurate but costly in terms of time and labor to develop. The
best one.
(1) 3-Point Estimating: - Answers Estimates by taking a weighted average of the 3 estimates using this
formula: (0+4m+P)/6
(1) What are the values of the 3-Point estimating? - Answers - Optimistic Cost
- Most Likely Cost
- Pessimistic Cost
(1) What is Optimistic cost? - Answers The lowest possible cost in which AB activity can be completed
under perfect circumstances.
(1) What is Most Likely Cost? - Answers The most likely costs under normal circumstances.
(1) What is Pessimistic Cost? - Answers The highest possible cost under the worst case scenario.
(1) Reserve Cost: - Answers The extra money in a project budget to be used if necessary. If the risk
occurs, it is classified as either management reserve or contingency reserve.
(2) Estimated Cost: - Answers The total project cost estimates that the project manager makes.
(2) Budgeted Cost: - Answers A budget that the management has prepared and allocated to the
project. (Shows how money is spent)
(2) Cost baseline: - Answers A time-phased budget used to monitor, measure, and control cost
performance during the project.
- It includes Contingency Reserves but not the Management Reserves
(2) Question 1: Determining Budget - Answers
(2) Cost Baseline= - Answers Cost Baseline = Cost Estimate + Contingency Reserve
(2) Project Budget= - Answers Project Budget = Cost Baseline + Management Reserve
(2) Control Costs: - Answers The process of monitoring the status of the project to update the project
costs and managing changing the cost baseline.
(2) Earned Value Management (EVM): - Answers A common method of project performance and
progress measurement throughout the project lifecycle in terms of the cost and schedule control.
(2) EVM compares.... - Answers the budgeted and actual costs to a project
(2) What are EVM's 3 Main Components? - Answers - Planned Value (PV)
- Earned Value (EV)
- Actual Cost (AC)
(2) What is Planned Value? - Answers How far along a project should take.
(2) What is Earned Value? - Answers The work that has actually been performed to date.
(2) What is Actual Cost? - Answers The sum of money spent so far.
(2) Budget at Completion (BAC): - Answers The total budget allocated to the project.
(2) Actual cost is used to calculate...... - Answers Cost variance (CV) and the Cost performance Index.
