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 has BAC = $500,000, EV = $300,000, and AC = $350,000. What is the Cost Performance Index (CPI)?

    Answer: 0.86

    CPI = EV / AC = $300,000 / $350,000 ≈ 0.86, indicating the project is getting $0.86 of value for every dollar spent.

  2. Which cost estimating technique uses statistical relationships between historical data and project variables to produce a single-point cost estimate?

    Answer: Parametric estimating

    Parametric estimating uses statistical/mathematical models based on historical parameters (e.g., cost per square foot) to derive the estimate.

  3. When a project manager applies the 'fast-tracking' schedule compression technique, what is the MOST likely impact on the project budget?

    Answer: Budget may increase due to rework from parallel activities

    Fast-tracking runs sequential activities in parallel, which increases the risk of rework and therefore can increase overall project costs.

  4. A resource calendar defines which of the following for project planning purposes?

    Answer: When and for how long each resource is available to work on the project

    A resource calendar documents the availability, working hours, vacations, and other constraints for each project resource.

  5. Life cycle costing differs from project budgeting primarily because it:

    Answer: Includes all costs from inception through disposal of the deliverable

    Life cycle costing accounts for the total cost of ownership across all phases—design, implementation, operations, and disposal—not just the project execution phase.

  6. A CPP candidate is reviewing a budget S-curve. The S-shape occurs primarily because:

    Answer: Low spending in early phases ramps up through execution then tapers at closeout

    S-curves reflect the typical project spending pattern: slow start, rapid spending during peak execution, and trailing off during closeout.

  7. Which process is responsible for monitoring the status of the project to update costs and managing changes to the cost baseline?

    Answer: Control Costs

    Control Costs is the process that tracks actual versus planned expenditures, calculates EVM metrics, and manages changes to the approved cost baseline.