1 The budgeted cost of the work performed （BCWP） for a task that has just been completed can be calculated by:

　　A Multiplying the actual hours worked on the project by the budgeted labor rate.

　　B Multiplying the budgeted hours to complete the task by the budgeted labor rate.

　　C Dividing the actual hours required to complete the task by the budgeted labor rate.

　　D Cannot be determined.

　　E None of the above

　　ans:B

　　2 The methods and techniques for determining the economic costs, the environmental impact, the economic returns, and the probability for success are called:

　　A Feasibility studies.

　　B Bills of materials.

　　C Pert charts.

　　D Managerial reserves.

　　E None of the above

　　ans:A

　　3 The planned cost for the total project at its inception is called the _____.

　　A Cost of goods sold.

　　B Depreciable value.

　　C Budgeted cost.

　　D All of the above.

　　E B and C only.

　　ans:C

　　4 Which of the following is not a measure of the profitability of a project or program?

　　A Return on original investment.

　　B Net present value.

　　C Depreciation.

　　D Discounted cash flow.

　　E None of the above

　　ans:C

　　5 The budget associated with scope changes that have been approved but not planned for yet, is referred to a（n） _____ budget.

　　A Unauditable.

　　B Undistributed.

　　C Preauthorized.

　　D Contingency.

　　E In-process.

　　ans:B

　　6 Using the situation stated in the Special window, what is the total fixed costs for manufacturing the widgets?

　　A $3,000

　　B $27,000

　　C $27,270

　　D $1,335

　　E $1,000

　　ans:E

　　7 Using the situation stated in the Special window, the labor rate cost variance is:

　　A $66,927

　　B $68,329

　　C $386

　　D $-0

　　E $18.36

　　ans:D

　　8 In project-driven companies, costs are usually billed againest the project based upon:

　　A The burdened labor rate of the actual employees who performed the work.

　　B The burdened labor rate of the line organization average salary.

　　C The burdened labor rate of the company average salary.

　　D The burdened labor rate of the average salary of the project team members.

　　E None of the above.

　　ans:A

　　9 The most common method for pricing out non-burdened labor hours for a three year project would be to:

　　A Price out the hours at the actual salary of the people to be assigned.

　　B Price out the work using a company-wide average labor rate.

　　C Price out the work using a functional group average labor rate.

　　D All of the above.

　　E A and B only.

　　ans:C

　　10 An element in the WBS was estimated to require 1 month for completion with 1000 hours of labor and a burdened cost of $50K. The task was completed in 1000 hours but a burdened cost of $60K. The most likely reason for the increase would be:

　　A Higher salaried employees were assigned.

　　B Overtime was required.

　　C The overhead rate increased.

　　D Employee salaries had increased.

　　E Any of the above

　　ans:E

　　11 During a project review meeting, you discover that your $250,000 project has a negative schedule variance of $20,000 which equates to 12% of the work scheduled to this point of time. You can therefore conclude that:

　　A The project will be completed late.

　　B The critical path has been lengthened.

　　C the costs are being overrun.

　　D Overtime will be required to maintain the original critical path.

　　E None of the above.

　　ans:E

　　12 Using the situation stated in the Special window, the total price variance of direct material is:

　　A $80,245

　　B $-4,236

　　C $-3,479

　　D $1

　　E $83,994.00

　　ans:C

　　13 Using the situation stated in the Special window, a comparison of the cost schedule of August as compared to July shows that the magnitude （$ value） of the variance has _____ and the percentage change has _____.

　　A Become worse, become worse

　　B Become worse, improved

　　C Improved, increased

　　D Improved, become worse

　　E None of the above are correct

　　ans:E

　　14 A graphical display of accumulated costs and labor hours for both budgeted and actual costs, plotted against time, is called a（n） _____.

　　A Trend line.

　　B Trend analysis.

　　C S curve.

　　D Percent completion report.

　　E Earned value report.

　　ans:C

　　15 Using the situation stated in the Special window, WBS Element Q is _____ budget by _____ percent.

　　A Over, 16.66

　　B Under, 16.66

　　C Over, 10.0

　　D Under, 10.0

　　E None of the above.

　　ans:A

　　16 Using the situation stated in the Special window, the schedule performance index （SPI） for WBS Element P is:

　　A 1.1

　　B 0.9

　　C 0.956

　　D 1.15

　　E 0.869

　　ans:A

　　17 Using the situation stated in the Special window, the cost performance index （CPI） for WBS Element R is:

　　A 0.875

　　B 1.14

　　C 0.952

　　D 0.833

　　E 1.2

　　ans:B

　　18 Using the situation stated in the Special window, which WBS element has a favorable cost variance of $150?

　　A Element P

　　B Element Q

　　C Element R

　　D Element S

　　E None of the above.

　　ans:C

　　19 Using the situation stated in the Special window, which WBS element is behind schedule but under budget?

　　A Element P

　　B Element Q

　　C Element R

　　D Element S

　　E None of the above.

　　ans:D

　　20 It is argumentative whether project managers actually control costs. Which of the following is the most common element over which the project manager may have some degree of control?

　　A Direct labor dollars

　　B Direct labor hours.

　　C Overhead rates.

　　D Procurement costs.

　　E None of the above.

　　ans:B