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 sponsor requests that the project manager reduce costs by 10% after the cost baseline has been approved. The project manager should FIRST:

    Answer: Submit a formal change request through the integrated change control process

    Any change to an approved cost baseline must go through integrated change control, regardless of where the request originates.

  2. The practice of 'gold plating' in a project context refers to:

    Answer: Adding features or enhancements beyond the approved scope without authorization

    Gold plating is adding unauthorized extras to deliverables, which consumes budget and time without a sanctioned change.

  3. In Earned Value Management, a Schedule Performance Index (SPI) of 0.80 combined with a CPI of 0.90 indicates a project that is:

    Answer: Behind schedule and over budget

    SPI < 1 means behind schedule; CPI < 1 means over budget—both indices below 1.0 indicate a doubly troubled project.

  4. A project manager is using the RAM (Responsibility Assignment Matrix) to support resource management. The RAM primarily shows:

    Answer: The relationship between work packages and team members' responsibilities

    A RAM (often a RACI chart) maps project work packages or activities to the individuals responsible for them, clarifying roles and accountability.

  5. Which of the following BEST describes the purpose of a cost management plan?

    Answer: It establishes the policies, procedures, and documentation for planning and controlling project costs

    The cost management plan defines how cost processes will be structured, estimated, budgeted, and controlled throughout the project.

  6. When two projects compete for the same critical resource, a project manager should FIRST:

    Answer: Negotiate with the other project manager and resource manager for a shared schedule

    Collaborative negotiation between project managers and the functional resource manager is the recommended first step before escalation.

  7. A project manager uses three-point estimating. The optimistic cost is $80K, most likely is $100K, and pessimistic is $150K. Using the triangular distribution, what is the expected cost?

    Answer: $110,000

    Triangular distribution expected value = (O + ML + P) / 3 = ($80K + $100K + $150K) / 3 = $110,000.