Question 56 of 131 ©] Mark for Review (K) You are in the middle of a new product develapment project for your publicly traded company when you discover that the previous project manager made a U.S. $3,000,000 payment that was not approved in accordance with your company policies. Luckily, the project cost performance index (CPI) is 1.2. Whet should you de? OA Contact your manager. OB Putthe payment in an escrow account. OC Burythe costinthe largest cost center avaliable OD Ignore the payment. (Previous) ] (Neti) ( Peokatanswortw) ( ReviewiR) _) ID: 70Question 2 of 131 J) Mark for Review (K) During the conceptual phase of a pipeline project, the project engineer estimates the folowing. The cost of the materials is most ikely U.S. $100,000, optimistically U.S. $90,000 and pessimistically U.S. $120,000. The cost for labor is mostlikely U.S. $80,000, optimistically US. $70,000 and possimistically US. $100,000. The cost for equipmentis most likely U.S. $60,009, optimistically U.S. $50,000 and pessirnistically U.S. $70,000. The cost for construction management fees is most likely US. $30,000, optimistically US. $20,000 and pessimistically US $40,000. Whats the probability of the project coming in under U.S. $270,000? OA Zero OB Less than 50 percent OC Exactly 50 percent OD Over 50 percent (Previous (P)} (Next in) (( Peekat answer(W) (Review) } ID: 580Question 3 of 131 J Mark for Review (K) ‘What is present value (PV)? OA Value of assets that a compeny owns OB Today's value of future cash flows OC Future value of money on hand today OD Current value of todey’s assets adjusted for inflation (Previous (P) Net(N) } ( PeekatAnswer(w) ][ Rewew(R) _} |D 560Question 4 of 131 |] Mark for Review (k) if a project manager is completing detailec estimating, which type of estimating is MOST likely being using? OA Bottom-up OB Analogous OC Parametric OD 50/50 rule (Previous (Pi) ] (Neti) —} = ( PeeketAnswertw) } (__Review(R) _)Question 5 of 131 | Mark for Review (kK) What would be the BEST explanation forthe folowing Both the cost variance and schedule variance are negative, but the cost variance is lower than the schedule variance. OA OB oc OD The project underspent, because all work was not completed but overspent for work that was done. The project overspent due to increased costs and yet completed some activities faster. The project activities took longer than expected, but costs were lower. The project underspent, because costs were lower than planned and activities were easier to complete than planned (" Previeus(P)) ("Next in) ( Peekat answer) | ReviewiR) |} ID: 1280Question 6 of 131 | Mark for Review (K) Allthe following are components of cost management EXCEPT? OA OB OD Vendor bid analysis Analogous estimating Earned value management Activity resource estimating (Previous (Py) [ Next (N] } { Peekat Answer (W) | [ Review (R) ID: 626Question 7 of 131 |] Wark for Review (K) Your company is in competition to win a major project for the govemment of a country. Your contacts in that countn inform you that you must make a large payment to the foreign minister to be considered for the project. What shou you do? OA Inform your company's management, and ask for direction. OB Donotmake the payment OC Have the local contact make the payment OD Make the payment {Previous (P) )( Next(N) =] [ Peekat Answer (Ww) } {Review (R) ) ID: 92Question & of 131 | Mark for Review (kK) ‘Which of the folowing is a KEY way to improve activity cost actimates? OA OB oc OD Use historical data Let management create the management reserve and the activity cost estimate: Base aciivily estimates on the upper and lower control limits Let the project manacer create the activity cost estimate (Previous) } {Netw | Peckatanswertw) ){ Review(R) ID: 588Question 9 of 131 | Mark for Review (K) Value analysis is performed te get OA OD more value from the cost analysis. management to buy into the project the team to buy into the project a less costly way of doing the seme work Previous P) | [ Next (N) } Peek at Answer (WV) | { Review (R) ID: 643Question 10 of 131 | Mark for Review (kK) Payment for any decision made or encouraged by a foreign official with respect to whether a compary will be awarded business is BEST described as OA oc OD common practice. a sunk cost. abribe. a progress fee ("Previous 1P)) [ Netiny (Peak at Anower a) }f Review (R) DosQuestion 11 of 131 (5 Mark for Review (i) ‘A management team is trying to decide if it will continue working on a project that has spent U.S. $500,000. The original estate for work completed to date was U.S. $200,000. U.S. $300,000. The difference between the actual cost and the original estimate, is a(n) OA customer cost. OB example of how bad the schedule was. OC direct cost. OD - sunk cost. ("Previous (P)) ("Next in) ("Peek at Answer) ) Review (R) | ID: 634Question 12 of 131 |] Mark for Review (K) During the executing process group, a functional manager asks you to use a model C generator instead of model B con your project. The functianal manager says that model C will solve the needs of the project and provide some benefits to the manufacturing department. You lock atthe cost associated with model C and discover thet itis substantially higher than model B. F you are not sure you can justfy the more expensive model, what is the BEST thing to do? oc oD Review the specifications of each to validate the manager's claims Analyze the differences in using each model and present them to the sponsor. Use model C and cut other activities to make up forthe added cost. Do allfe cycle analysis and present the results 10 your boss. {Previous (P) )( Next(N) | [ Peekat Answer (Ww) | [Review (R) ) ID: 482Q uestion 13 of 131 J Mark far Review (IK) ‘Your project will go through many phases to produce a high priced product thatwill sold to the public. You ere currertly starting the design pnese. The price will include the praduct and scheduled maintenance. The team includes representatives from the engineering departmert, who will help determine the design of the project, the marketing department, wio will determine the shape of the container for the product of the project and the accounting department who will help make sure the cost of the project allows ample profit margin Tho project charter has been completed and signed by sponsors from all these departments. The product scope has been completed in an earlier project that was two months delayed due to arguing over the scope. The lear is now functioning well and past team bullcing efforts have produced an effective team for th's new project ‘Which of the following is the BEST thing to include that hes not been included in planning? OA The team working on the project does not include anyone from senior management and will thus not have enough suppor to be completed quickly and effectively. OB There needs to be a representative from the quality department to ensure that the project will satisty the needs for which itis undertaken, OC The project is not taking into account how the project work will affect future phases and thus future phases may cost more. OD Team building efforts should still be done in the future to ensure an effective team. Previous (P) Next (IN) ) Peek at Answer (WV) | { Review(R) | ID: 1259Question 14 of 131 _| Mark for Review (kK) A project manager wants to decrease costs on a project that @ consultant is completing for her company. What coats should the project manager consider to accomplish this? Oa OB oc OD Variable and fixed Variable and direct Fixed and indirect Direct and indirect (Previous (P)} (Next in) ("Peek at Answer (wv) } { Review (R) ID: 645Question 15 of 131 Mark for Review (K) ‘Which of the following does NOT assess the value a project brings to an organization? OA OB oc OD Benefit cost analysis Net present value Value analysis Needs assessment {Previous iP) ) Neat (N) ) Peek at Answer WW) | [ Review (R) ID: 17