Question 16:
What is the primary purpose of cost management in project management?
Explanation: The primary purpose of cost management in project management is "to control project expenses and optimize resource allocation," ensuring that the project is delivered within budget.
Question 17:
What is a cost baseline in project management?
Explanation: A cost baseline in project management is "the approved budget for the project," serving as a reference point to measure and control project costs.
Question 18:
What is the purpose of earned value analysis in cost management?
Explanation: The purpose of earned value analysis in cost management is "to assess the project's progress and performance in terms of cost," comparing the planned value, earned value, and actual cost to determine the project's cost efficiency and schedule variance.
Question 19:
What is the formula to calculate the cost variance (CV) in earned value management?
Explanation: The formula to calculate the cost variance (CV) in earned value management is "CV = Earned Value (EV) - Planned Value (PV)," which measures the difference between the value of work performed and the planned cost for that work.
Question 20:
What is the purpose of cost forecasting in project management?
Explanation: The purpose of cost forecasting in project management is "to predict future project costs based on historical data and trends," helping stakeholders make informed decisions and ensure project financial stability.
