PMP Exam Question and Answers (Latest
Update)
Earned Value (EV) Correct Answer-The measure of work performed
expressed in terms of the budget authorized for that work. BAC x % Work
Completed
Planned Value (PV) Correct Answer-The portion of the approved total cost
estimate planned to be spe...
PMP Exam Question and Answers (Latest
Update)
Earned Value (EV) Correct Answer-The measure of work performed
expressed in terms of the budget authorized for that work. BAC x % Work
Completed
Planned Value (PV) Correct Answer-The portion of the approved total cost
estimate planned to be spent on an activity during a given period. Planned %
Complete x BAC
Actual Cost (AC) Correct Answer-The realized cost incurred for the work
performed on an activity during a specific time period.
Budget at Completion (BAC) Correct Answer-The sum of all budgets
established for the work to be performed.
Estimate to Complete (ETC) Correct Answer-The expected cost to finish all the
remaining project work. EAC - AC
Estimate at Completion (EAC) Correct Answer-The expected total cost of
completing all work expressed as the sum of the actual cost to date and the
estimate to complete. BAC / CPI
Cost Performance Index (CPI) Correct Answer-A measure of the cost
efficiency of budgeted resources expressed as the ratio of earned value to actual
cost. EV / AC
Schedule Performance Index (SPI) Correct Answer-A measure of schedule
efficiency expressed as the ratio of earned value to planned value. EV / PV
, PMP Exam Question and Answers (Latest
Update)
To-Complete Performance Index (TCPI) Correct Answer-A measure of the cost
performance that is required to be achieved with the remaining resources in
order to meet a specified management goal, expressed as the ratio of the cost to
finish the outstanding work to the remaining budget. (BAC - EV) / (BAC - AC)
Cost Variance (CV) Correct Answer-EV - AC
Negative is over budget; positive is under budget
Schedule Variance (SV) Correct Answer-EV - PV
Negative is behind schedule; positive is ahead of schedule
Variance at Completion (VAC) Correct Answer-A projection of the amount of
budget deficit or surplus, expressed as the difference between the budget at
completion and the estimate at completion. BAC - EAC
Economic Value Added (EVA) Correct Answer-Net operating profit after taxes
minus (capital x cost of capital); a measure of the economic value of an
investment or project
Future Value (FV) Correct Answer-the value of future cash flows discounted
at the appropriate discount rate FV = PV(1+r)^n
Return on Invested Capital (ROIC) Correct Answer-Net income after tax /
Invested Tax (smaller is better)
, PMP Exam Question and Answers (Latest
Update)
Order of Magnitude Estimate Correct Answer-A high-level estimate of the
time and cost of a project based on the actual cost and duration of a similar
project. -50% to +100%
Conceptual Estimate Correct Answer-a cost estimate based on very little
design information and using gross unit pricing to determine the project cost. -
30% to +50%
Preliminary Estimate Correct Answer--20% to +30% estimate range
Definitive Estimate Correct Answer--15% to +20% estimate range
Control Estimate Correct Answer--10% to +15% estimate range
Delphi Technique Correct Answer-A decision-making technique in which
group members do not meet face-to-face but respond in writing to questions
posed by the group leader. Prevents biasing opinions and groupthink.
Nominal Group Technique Correct Answer-Brainstormed ideas are voted
upon and sorted by priority
Scope Baseline Correct Answer-The approved version of a scope statement,
work breakdown structure (WBS), and its associated WBS dictionary, that can be
changed only through formal change control procedures and is used as a basis
for comparison.
, PMP Exam Question and Answers (Latest
Update)
Baseline Correct Answer-The original plan plus all approved changes (scope,
schedule, cost)
Functional Organization Correct Answer-Departmentalization around
specialized activities such as production, marketing, and human resources.
Projectized Organization Correct Answer-Any organizational structure in
which the project manager has full authority to assign priorities, apply
resources, and direct the work of persons assigned to the project.
Matrix Organization Correct Answer-An organization in which specialists
from different parts of the organization are brought together to work on specific
projects but still remain part of a line-and-staff structure. Strong, Balanced, and
Weak, where in strong PM has power.
Project Scope Statement Correct Answer-The description of the project
scope, major deliverables, assumptions, and constraints. Includes product scope
description, acceptance criteria and project exclusions.
Work Breakdown Structure (WBS) Correct Answer-A hierarchical
decomposition of the total scope of work to be carried out by the project team
to accomplish the project objectives and create the required deliverables.
Lead Correct Answer-Starting an activity prior to the finish of the preceding
activity
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