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    Project Management: Questions

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    Question 26
    Throughout a project, the Cost Performance Index has decreased from 1.3 to 0.8. The cost performance on this project has:

    a. Improved.
    b. Deteriorated.
    c. Stayed about the same.
    d. There is insufficient information to answer the question.

    Question 27
    Which of the following statements best describes the relationship between project cost and quality?

    a. Six Sigma method has no relationship to project cost management.
    b. Improved quality results in higher total life cycle cost.
    c. Quality should be planned into the project to reduce total life cycle cost.
    d. Quality is primarily a manufacturing issue and has no impact on project cost.

    Question 28
    If cumulative PV = ?100,000, cumulative EV = ?98,000, and cumulative AC = ?104,000, the project is:

    a. Ahead of schedule.
    b. Operating below project cost projections.
    c. Likely to come in over budget at completion.
    d. Likely to come in under budget at completion.

    Question 29
    Which of the following methods is most likely to result in an increase in project cost?

    a. Earned value method
    b. Trade-off decisions involving resources, schedule, and performance
    c. Resource leveling
    d. Crashing activities to meet end dates

    Question 30
    In which type of cost estimating is regression analysis technique used?

    a. Bottom-up
    b. Definitive
    c. Parametric
    d. Engineering (grass roots)

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    Solution Preview


    26) B. Deteriorated

    27) C. Quality should be planned into the project to reduce total life cycle cost.

    28) C. Likely to come in over budget at completion.

    29) D. Crashing activities to meet end dates

    30) C. Parametric



    Reference: http://www.cit.cornell.edu/computer/robohelp/cpmm/Glossary_Words/CPI.htm

    Cost Performance Index (CPI)

    A measure of cost efficiency on a project. It is the ratio of earned value (EV) to actual cost of work performed


    CPI = EV divided by ACWP.

    A value equal to or greater than one indicates a favorable condition and a value less than one indicates an

    unfavorable condition.

    CPI is decreasing from 1.3 to 0.8, 0.8 < 1, so the Cost performance is Deteriorated.


    The total life cycle cost of the entire project can be ...

    Solution Summary

    Solution clearly explains the concepts of Project Management like Project Cost, Project Scheduling, Project Budget by answer multiple choice questions.