ISOM EXAM 3 QUESTIONS & ANSWERS
In many cases, there will be a tradeoff, reducing cost variances will involve a reduction
in project scope or a delay in the project schedule. - Answer -True
the key to managing cash flow is to ensure that cash comes in faster than it goes out -
Answer -True
The total project cost is often estimated during the ________ phase of the project or
when the project charter or a proposal is prepared - Answer -Initiating
it's important that the person estimating the percent complete not only assess how
much work has been performed but also consider - Answer -What work remains to be
done
historical data can be used as a guide on the current project - Answer -True
Calculate the cost variance if the cumulative earned value is $10 and the cumulative
actual costs are $20 - Answer --$10
if the cumulative earned value is $10 and the cumulative actual costs are $20, then the
CPI is: - Answer -.05
Cost Performance Index (CPI) is a measure of the cost efficiency with which the project
is being performed. If the cumulative earned value is greater than the cumulative actual
costs, then - Answer -the CPI is greater than 1.0
At the beginning of the project, it may not be possible to estimate the costs for all
activities with a level of confidence regarding their accuracy. This is especially true for -
Answer -Longer-term projects
it is important to manage the cash flow on a project - Answer -True
consider a project that involves painting five similar houses over 10 weeks (one house
every two weeks) for a total budgeted cost of $20,000. The budget is $4,000 per house.
At of the end of week 5, you determine that $10,000 has actually been spent and three
house have been painted completely. What is the earned value of the project? -
Answer -$12,000
based on analysis of actual cost it is possible to forecast what the total costs will be at
the completion of the project or work package - Answer -True
the key to effective cost control is to analyze cost performance on a regular and timely
basis - Answer -true
In many cases, there will be a tradeoff, reducing cost variances will involve a reduction
in project scope or a delay in the project schedule. - Answer -True
the key to managing cash flow is to ensure that cash comes in faster than it goes out -
Answer -True
The total project cost is often estimated during the ________ phase of the project or
when the project charter or a proposal is prepared - Answer -Initiating
it's important that the person estimating the percent complete not only assess how
much work has been performed but also consider - Answer -What work remains to be
done
historical data can be used as a guide on the current project - Answer -True
Calculate the cost variance if the cumulative earned value is $10 and the cumulative
actual costs are $20 - Answer --$10
if the cumulative earned value is $10 and the cumulative actual costs are $20, then the
CPI is: - Answer -.05
Cost Performance Index (CPI) is a measure of the cost efficiency with which the project
is being performed. If the cumulative earned value is greater than the cumulative actual
costs, then - Answer -the CPI is greater than 1.0
At the beginning of the project, it may not be possible to estimate the costs for all
activities with a level of confidence regarding their accuracy. This is especially true for -
Answer -Longer-term projects
it is important to manage the cash flow on a project - Answer -True
consider a project that involves painting five similar houses over 10 weeks (one house
every two weeks) for a total budgeted cost of $20,000. The budget is $4,000 per house.
At of the end of week 5, you determine that $10,000 has actually been spent and three
house have been painted completely. What is the earned value of the project? -
Answer -$12,000
based on analysis of actual cost it is possible to forecast what the total costs will be at
the completion of the project or work package - Answer -True
the key to effective cost control is to analyze cost performance on a regular and timely
basis - Answer -true
