Question 1:
What is the formula to calculate Estimate at Completion (EAC) when a project's current performance is not consistent with the original budget?
Explanation: The formula to calculate Estimate at Completion (EAC) when a project's current performance is not consistent with the original budget is "EAC = AC + (BAC - EV) / CPI," where AC represents Actual Cost, BAC represents Budget at Completion, and EV represents Earned Value.
Question 2:
What does the term "variance at completion" (VAC) represent in cost management?
Explanation: In cost management, "variance at completion" (VAC) represents "the difference between the Budget at Completion (BAC) and Estimate at Completion (EAC)."
Question 3:
What is the purpose of the Cost Performance Index (CPI) in cost management?
Explanation: The purpose of the Cost Performance Index (CPI) in cost management is "to measure the efficiency of the project in terms of earned value."
Question 4:
What does the term "sunk cost" refer to in cost management?
Explanation: In cost management, "sunk cost" refers to "costs that have been incurred and cannot be recovered."
Question 5:
What is the purpose of the Cost of Quality (CoQ) in cost management?
Explanation: The purpose of the Cost of Quality (CoQ) in cost management is "to measure the cost of non-conformance to quality requirements."
