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CHAPTER 14: COST CONTROL
(Difficulty: E = easy, M = medium, H = hard)
(E) 1. If the schedule variance is positive and the cost variance is negative, the project’s
status is:
A. Over budget and behind schedule
(E) 2. The EVMS term that represents the value of work actually accomplished is:
D. BAC
(M) 3. Which of the following terms is used to determine the trend on cost?
D. AC
(M) 4. If PV = $100, EV = $200, and AC = $300, the status is:
D. Under budget and ahead of schedule
(H) 5. If SPI = 1.05 and CPI = 0.96, the project’s trend is:
D. Under budget and ahead of schedule
(H) 6. Consider the following: BAC = $1000, VAC = <$200>, and AC = $400. Therefore,
EV = _____.
C. $800
D. Cannot be determined
(H) 7. Consider the following: BAC = $1000, VAC = <$200>, and AC = $400. Therefore,
SV = _____.
A. $480
(M) 8. The difference between the cost baseline and the contracted cost is the:
D. Cost of scope changes
(M) 9. The best source of revenue for a customer-requested scope change is:
D. Profits
(E) 10. The form that is used to establish charge numbers is the:
D. Cost account change notice
(M) 11. The weakness in all of earned value measurement is the way we calculate:
D. EAC
(E) 12. The best method to price out a work package is to use the:
D. Statistical data from the Payroll Department
(E) 13. Which of the following escalation factors are usually paid for with funds from the
management reserve?
A. Salaries
(M) 14. A common cause for a favorable SV but unfavorable CV might be:
D. All of the above
(M) 15. A common cause for a favorable CV but unfavorable SV might be:
D. Use of overtime
(M) 16. An S-Curve plots:
D. None of the above
(H) 17. If PV > AC, then we are spending less than the plan called for, but we do not know if
that’s good or bad without having a value for EV.
(M) 18. Earned value measurement systems must be capable of:
A. Measuring resources consumed
(M) 19. The person or group with greatest ability to influence cost at project initiation is:
D. The users
(M) 20. At project initiation:
A. Few cost reduction opportunities exist, and the cost of each change is large
(M) 21. The establishment of all of the charge numbers for a project is called the:
A. Work package codes
(H) 22. Work that does not lend itself to subdivision into discrete scheduled increments of
work, such as project support, is called:
D. Work package effort
(H) 23. Variance envelopes are usually established because:
D. All cost overruns require sponsor authorization
D. VAC
(M) 25. In which type of project report would we most likely find EAC and ETC?
A. Performance
