39 Helpful Free PMP Practice Exams on Cost Management

Hey guys! if you are considering applying for the PMP certification that you need to know these information. For a real Pmp exam, you have to score 106 out of 200 questions during 4 hours, these 200 questions included a lot of areas such as domain I (initiating the project 13%); Domain II (planning the project 24%); Domain III (executing the project 30%); Domain IV (monitoring and controlling the project 25%); Domain V (closing the project 8%) and knowledge area namely communication, cost, human resource, integration, procurement, quality, risk, scope, shakeholder and time. So, we recommend you practice 39 Helpful Free PMP Practice Exams on Cost Management below, which are designed for your exam preparation to help you take the concepts included in your materials. Indeed, this free PMP practice exam by knowledge area is dedicated to your knowledge improvement, critical thinking development and familiarity with the exam format. Here hard questions with misleading information require your reasoned thinking utilization for resolution. Moreover, the friendly format help refresh your practice. Just tick the best response to each multiple choice question, and hit submit at the bottom of the page to have your results automatically checked and scored. Let’s enjoys to obtain PMP certification right now!

Follow the links below to practice more:
185 PMP Mock Exam on Project Cost Management from Chapter 7 of PMBOK 5th Edition
49 Free Project Cost Management Questions from Rita’s Course in a Book for Passing the PMP Exam
10 Free Project Cost Management Questions from Rita’s Course in a Book for Passing the PMP Exam

39 Helpful Free PMP Practice Exams on Cost Management

Earned Value

Planned value

Cost Variance (EV - AC) - Negative is over budget; Postive is under budget.

Schedule Variance (EV - PV) - Negative is behind schedule; Positive is ahead of schedule.

These are directly attributable to the work on the project. examples are team travel, team wages, recognition, and costs of material used on the project.

Direct Costs
Indirect Costs
Fixed Costs
Variable Costs

These do not change as production changes. Examples include the cost of set-up, rent, utilities, etc.

Fixed Costs
Indirect Costs
Direct Costs
Variable Costs

Return on investment (ROI)

A technique to estimate the attractiveness of an investment by predicting how much money will be received in the future and discounting it to its current value.
This technique involves using expert judgment and historical information to predict the future to provide an estimate.
This technique looks at the relationships between variables on an activity to calculate cost estimates.
A technique to measure the potential profitability of an investment by calculating the benefits received in relation to the cost.

These are funds used for known risks, which are specifically idenitified risks.

Indirect Costs
Contingency reserves
Control thresholds
Management reserves

This is the portion of the budget that the project manager will have control over. It is a time-phased budget that will be used to measure and monitor cost performance on the project. It is shown as an S curve. The difference between maximum funding and the end of the cost baseline is Management Reserve in the S curve.

Cost of quality
Cost budget
Cost risk
Cost baseline

ETC

Estimate to Complete (EAC - AC) - How much more the project will cost.
This is a focus to find a less costly way to do the same work.
Estimate at Completion
This is an agreed amount of variation allowed.

Definitive estimate

Estimates can range from +/-10 percent to -5 to +10 percent depending on the project manager.
This is a focus to find a less costly way to do the same work.
Cost Variance (EV - AC) - Negative is over budget; Postive is under budget.
Estimate to Complete (EAC - AC) - How much more the project will cost.

This is an agreed amount of variation allowed.

Cost risk
Cost baseline
Contingency reserves
Control thresholds

Budget at Completion
Planned value
Earned Value
Actual Cost

Life cycle costing

This is a focus to find a less costly way to do the same work.
This technique involves using expert judgment and historical information to predict the future to provide an estimate.
This concept involves looking at costs over the entire life of the project to create the product.
This technique involves creating detailed estimates for each part of an activity or work package. To do this well it requires an accurate WBS. The estimates are then rolled up into control accounts and finally into an overall project estimate.

Analogous estimating

This technique involves estimating the pessimistic, most likely, and optimistic estimates for each activity.
This concept involves looking at costs over the entire life of the project to create the product.
This technique involves using expert judgment and historical information to predict the future to provide an estimate.
This technique involves creating detailed estimates for each part of an activity or work package. To do this well it requires an accurate WBS. The estimates are then rolled up into control accounts and finally into an overall project estimate.

Value analysis / Value engineering

This is a focus to find a less costly way to do the same work.
This is any cost-related risk
This is an agreed amount of variation allowed.
Generally any software used for estimating.

CPI

Schedule Performance Index
Cost Performance Index
Earned Value
Budget at Completion

Cost budget

The cost of work added to the project to accomodate quality efforts.
This is the portion of the budget that the project manager will have control over. It is a time-phased budget that will be used to measure and monitor cost performance on the project. It is shown as an S curve. The difference between maximum funding and the end of the cost baseline is Management Reserve in the S curve.
These change with the amount of production or the amount of work. Examples include cost of materials, supplies, and wages.
This is the amount of funds needed for the project determined are the total cost of the project has been calculated.

Generally any software used for estimating.

Project management software
Cost management plan
Management reserves
Performance measurement baseline

This type of estimate is usually made during project initiating. A typical range for ROM estimates in -25 to +75 percent from actual, but this range can vary depending on how much is known about the project when creating the estimates.

Budget estimate
Rough order of magnitude estimate
Definitive estimate
Three-point estimating

VAC

Actual Cost
Variance at Completion
Budget at Completion
Estimate at Completion

This is developed in the Plan Cost Management process and documents the methods you'll use to estimate costs as well as the level of accuracy required for estimates.

Cost budget
Cost management plan
Cost baseline
Project management software

Reserve analysis

This is the amount of funds needed for the project determined are the total cost of the project has been calculated.
The cost of work added to the project to accomodate quality efforts.
This involves identifying which activities on the project have significant risks and determining how much time and money to set aside to account for the risks if they occur.
This is the portion of the budget that the project manager will have control over. It is a time-phased budget that will be used to measure and monitor cost performance on the project. It is shown as an S curve. The difference between maximum funding and the end of the cost baseline is Management Reserve in the S curve.

These change with the amount of production or the amount of work. Examples include cost of materials, supplies, and wages.

Indirect Costs
Variable Costs
Fixed Costs
Direct Costs

Inputs to estimating costs

This is a focus to find a less costly way to do the same work.
These do not change as production changes. Examples include the cost of set-up, rent, utilities, etc.
These are directly attributable to the work on the project. examples are team travel, team wages, recognition, and costs of material used on the project.
These help you create estimates more quickly. Examples of these are cost management plan, scope baseline, project schedule, human resource management plan, risk register, etc.

Budget at Completion

Discounted cash flow

This technique looks at the relationships between variables on an activity to calculate cost estimates.
A technique to estimate the attractiveness of an investment by predicting how much money will be received in the future and discounting it to its current value.
This technique involves using expert judgment and historical information to predict the future to provide an estimate.
A technique to measure the potential profitability of an investment by calculating the benefits received in relation to the cost.

The cost of work added to the project to accomodate quality efforts.

Cost baseline
Cost risk
Cost of quality
Cost budget

Parametric estimating

A technique to measure the potential profitability of an investment by calculating the benefits received in relation to the cost.
This technique looks at the relationships between variables on an activity to calculate cost estimates.
This technique involves creating detailed estimates for each part of an activity or work package. To do this well it requires an accurate WBS. The estimates are then rolled up into control accounts and finally into an overall project estimate.
This technique involves estimating the pessimistic, most likely, and optimistic estimates for each activity.

Three-point estimating

This technique looks at the relationships between variables on an activity to calculate cost estimates.
This technique involves using expert judgment and historical information to predict the future to provide an estimate.
This technique involves creating detailed estimates for each part of an activity or work package. To do this well it requires an accurate WBS. The estimates are then rolled up into control accounts and finally into an overall project estimate.
This technique involves estimating the pessimistic, most likely, and optimistic estimates for each activity.

This is an integrated baseline which covers the aspects of cost, scope and schedule. It is generally an aggregation of the cost baseline, schedule baseline and scope baseline

Project management software
Performance measurement baseline
Management reserves
Cost management plan

Management reserves

This is an agreed amount of variation allowed.
These are funds used for known risks, which are specifically idenitified risks.
These are funds used for unknown risks or unidenitified risks.
This is any cost-related risk

Estimate at Completion

This technique involves creating detailed estimates for each part of an activity or work package. To do this well it requires an accurate WBS. The estimates are then rolled up into control accounts and finally into an overall project estimate.

Parametric estimating
Analogous estimating
Three-point estimating
Bottom-up estimating

TCPI

Estimate to Complete (EAC - AC) - How much more the project will cost.
Cost Performance Index
Schedule Performance Index
To-Complete Performance IndexBAC - EV-------------BAC - AC

SPI

Budget at Completion
Variance at Completion
Schedule Performance Index
Cost Performance Index

These are overhead items or costs incurred for the benefit of more than one project. examples include taxes, fringe benefits, and janitorial services.

Direct Costs
Variable Costs
Indirect Costs
Fixed Costs

This is any cost-related risk

Cost budget
CPI
Cost risk
Cost baseline

This type of estimate is usually made during project planning and is in the range of -10 to +25 percent from actual.

Budget estimate
Bottom-up estimating
Analogous estimating
Definitive estimate

39 Helpful Free PMP Practice Exams on Cost Management

39 Helpful Free PMP Practice Exams on Cost Management

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