Question 21:
What is the purpose of a cost management plan in project management?
Explanation: The purpose of a cost management plan in project management is "to define how costs will be planned, structured, and controlled throughout the project," providing guidelines and procedures for managing project costs.
Question 22:
What is the formula to calculate the cost performance index (CPI) in earned value management?
Explanation: The formula to calculate the cost performance index (CPI) in earned value management is "CPI = Earned Value (EV) / Actual Cost (AC)," which measures the cost efficiency of the work performed compared to the actual cost spent.
Question 23:
What is the purpose of a cost management system in project management?
Explanation: The purpose of a cost management system in project management is "to track and control project expenses in real-time," providing accurate and up-to-date information on project costs.
Question 24:
What is the purpose of a cost baseline in project management?
Explanation: The purpose of a cost baseline in project management is "to establish the authorized budget for the project," serving as a reference point for measuring and controlling project costs.
Question 25:
What is the difference between direct costs and indirect costs in project management?
Explanation: The difference between direct costs and indirect costs in project management is that "direct costs are directly attributable to a specific project activity, while indirect costs are not directly linked to a particular activity." Direct costs can be traced to specific project work, while indirect costs are shared across multiple activities or overhead expenses.
