1 The Cost Performance Index （CPI） measures

　　A total costs

　　B performance over a period of time

　　C costs at a point of time

　　D variable costs

　　E All of the above.

　　ans:C

　　2 Parametric cost estimating involves

　　A using the WBS to do bottom up estimates

　　B defining the perimeters of the life-cycle

　　C calculating the individual estimates of work packages

　　D using a statistical model to estimate costs

　　E A and C

　　ans:D

　　3 Which of the statements regarding benefit-cost analysis in the Special window are true?

　　A 1 and 2

　　B 2 and 3

　　C 1 and 3

　　D 1, 2 and 3

　　E None of the above.

　　ans:C

　　4 Present value measures

　　A the value to us today of future cash flows.

　　B the rate of return on an investment when we take account of cash inflows and outflows

　　C the current estimates of our project budget

　　D the dollars worth of work accomplished as of today

　　E All of the above.

　　ans:A

　　5 Using the situation stated in the Special window, what is the cost performance index for Case #9?

　　A 1.1

　　B 1.91

　　C 0.83

　　D 1.2

　　E None of the above

　　ans:A

　　6 Sunk costs are:

　　A future costs held in reserve.

　　B costs invested in commodities.

　　C expended costs over which we have no control.

　　D expended costs over which we have no more control

　　E tax credits

　　ans:D

　　7 Managerial Reserves are:

　　A allowances to account for price changes that can occur over the life of a project.

　　B incentive fees paid to managers for good performance.

　　C funds used to offset poor cost or schedule estimates.

　　D accounts to allocate and maintain funds for contingency programs

　　E All of the above.

　　ans:D

　　8 Life Cycle Costing:

　　A is the concept of including all costs within the total life of a project.

　　B is an activity devoted to optimizing cost/performance

　　C is an activity of appraising the cost and technical performance of a completed project.

　　D is a process of predicting the life of a project.

　　E None of the above.

　　ans:A

　　9 Using the situation stated in the Special window, what is the schedule variance for Case #8?

　　A 1000

　　B 2000

　　C -1000

　　D -2000

　　E 0

　　ans:C

　　10 Using the situation stated in the Special window, what is the cost variance for Case #9?

　　A $-1,000

　　B $1,000

　　C -2000

　　D 2000

　　ans:B

　　11 Using the situation stated in the Special window, what is present value of $1000 at 12% at the end of 5 years?

　　A $3,605.00

　　B $0.57

　　C $567.00

　　D $892.86

　　E $3.61

　　ans:C

　　12 Using the situation stated in the Special window, what is net present value of an annual income flow of $1600 at 14% over the next three years?

　　A $3,713.60

　　B $0.68

　　C $1,080.00

　　D $476.19

　　E $2.32

　　ans:A

　　13 Using the situation stated in the Special window, what is the labor rate cost variance?

　　A $5,500.00

　　B $1,500.00

　　C $-100.00

　　D $-0.10

　　E $5,600.00

　　ans:D

　　14 Using the situation stated in the Special window, what is the total price variance for direct material?

　　A $140.00

　　B $736.00

　　C $0.02

　　D $-350.00

　　E $5,850.00

　　ans:B

　　15 Using the situation stated in the Special window, what is the total variable costs for producing one widget?

　　A $1,020

　　B $1,010

　　C $1,015

　　D $20

　　E None of the above.

　　ans:E

　　16 A technique that can be used to measure the total income of a project compared to the total moneys expended at any period of time is:

　　A return on investment （ROI）

　　B net present value （NPV）

　　C discounted cash flow （DCF）

　　D B and C

　　E All of the above.

　　ans:E

　　17 Cost management includes processes that are required to maintain financial control of projects. These processes may include:

　　A economic evaluation

　　B cost estimating

　　C cost forecasting

　　D B and C

　　E All of the above.

　　ans:E

　　18 Which of the following is considered a method of accelerated depreciation:

　　A sum-of-the-years digit

　　B straight-line

　　C double-declining-balance

　　D A and C

　　E All of the above.

　　ans:D

　　19 The Cost Performance Index is computed as:

　　A budget cost of work performed divided by actual cost of work performed

　　B budget cost of work performed minus actual cost of work performed

　　C budget cost of work performed minus budget cost of work scheduled

　　D budget cost of work scheduled divided by budget cost of work performed

　　E actual cost of work scheduled divided by budget cost of work performed

　　ans:A

　　20 A budget estimate should give the manager cost data accurate to within:

　　A -5 to +10 percent of actual cost

　　B -25 to +75 percent of actual cost

　　C -30 to +75 percent of actual cost

　　D -10 to +25 percent of actual cost

　　E None of the above

　　ans:D