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. Which document formally authorizes the project manager to apply organizational resources to project activities?

    Answer: Project charter

    The project charter formally authorizes the project and grants the project manager the authority to allocate organizational resources.

  2. A project manager wants to ensure that all cost estimates are rolled up consistently into the project budget. Which technique aggregates work package cost estimates into control account estimates and ultimately the project total?

    Answer: Cost aggregation

    Cost aggregation sums lower-level work package estimates up through the WBS hierarchy to produce the overall project cost estimate.

  3. A project is tracking a cumulative CPI of 0.75 at the 50% completion point. The sponsor asks for a revised EAC. Using the EAC = BAC / CPI formula, if BAC = $400,000, what is the EAC?

    Answer: $533,333

    EAC = BAC / CPI = $400,000 / 0.75 = $533,333, meaning the project is projected to cost approximately $133K more than planned.

  4. Which type of cost is directly attributable to a specific project deliverable and would not exist if the deliverable were not produced?

    Answer: Direct cost

    Direct costs are those that can be specifically linked to a project activity or deliverable, such as labor and materials for that item.

  5. A project manager is conducting a 'make-or-buy' analysis. The primary purpose of this analysis is to:

    Answer: Determine whether to produce a deliverable internally or procure it externally

    Make-or-buy analysis compares the cost and feasibility of in-house production against external procurement to guide the sourcing decision.

  6. Resource smoothing differs from resource leveling in that resource smoothing:

    Answer: Adjusts resource use within activity float without changing the critical path end date

    Resource smoothing uses available float to even out resource demand while keeping the project end date fixed, unlike leveling which may extend duration.

  7. An organization uses a project portfolio approach. When evaluating budget allocation across projects, the portfolio manager should prioritize based on:

    Answer: Strategic alignment, expected ROI, and resource availability across the portfolio

    Portfolio budget allocation decisions are driven by strategic value, financial return, and the practical capacity of shared resources across all initiatives.