Practice Test Geeks(CPP) Certified Project Professional Practice Test
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Budgeting & Resource Management Flashcards

7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Budgeting & Resource Management flashcards as text

  1. A project manager discovers mid-project that actual costs are running 15% above the budget baseline. Which response is MOST appropriate under CPP standards?

    Answer: Perform variance analysis and update the cost forecast

    CPP standards require variance analysis followed by an updated forecast (EAC) before any corrective action is decided.

  2. Which formula correctly calculates the Estimate at Completion (EAC) when future work is expected to be performed at the budgeted rate?

    Answer: EAC = AC + (BAC - EV)

    EAC = AC + (BAC - EV) assumes remaining work will be completed at the planned rate regardless of past performance.

  3. A resource histogram shows a team member is allocated at 140% capacity for three consecutive weeks. What is the FIRST action a project manager should take?

    Answer: Level resources by adjusting task sequencing or assignments

    Resource leveling—adjusting task timing or assignments—is the standard technique to resolve overallocation before resorting to overtime.

  4. The To-Complete Performance Index (TCPI) is calculated as (BAC − EV) / (BAC − AC). A TCPI of 1.25 indicates what?

    Answer: Remaining work must be completed at a rate 25% more efficient than planned

    A TCPI greater than 1.0 means the team must improve efficiency on remaining work to finish within the original budget.

  5. Which reserve type is used to address 'known-unknown' risks and is included in the project cost baseline?

    Answer: Contingency reserve

    Contingency reserves cover identified risks (known-unknowns) and are included in the project cost baseline.

  6. A sponsor asks why the project budget includes amounts above the cost baseline. The project manager should explain that the difference represents what?

    Answer: Management reserve for unknown risks

    The difference between the cost baseline and the total project budget is the management reserve, held for unforeseen 'unknown-unknown' events.

  7. During resource planning for a CPP-level project, a staffing management plan should address which of the following?

    Answer: Acquisition, training, recognition, and release of project resources

    The staffing management plan covers the full lifecycle of project team resources: how they are acquired, developed, recognized, and released.