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Chapter 8 material - Self-assessment review questions and answers for Chapter 8

1. Using the table below, what is the cost performance index (CPI) for WBS Element R?
   

   WBS Element	BCWS	BCWP	ACWP
   P	£1,000	£1,100	£1,150
   Q	£2,000	£1,800	£2,100
   R	£1,000	£1,200	£1,050
   S	£2,000	£1,900	£1,800

    

   1.   ?    0.875
   2.   ?    1.14
   3.   ?    0.952
   4.   ?    0.833

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2. Using the table below, what is the schedule performance index (SPI) for WBS Element P?
   

   WBS Element	BCWS	BCWP	ACWP
   P	£1,000	£1,100	£1,150
   Q	£2,000	£1,800	£2,100
   R	£1,000	£1,200	£1,050
   S	£2,000	£1,900	£1,800

    

   1.   ?    1.10
   2.   ?    0.90
   3.   ?    0.956
   4.   ?    1.15

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3. Upon completion of 75% of the project, what should the original schedule and cost estimate that were submitted at the inception of the project be referred to as?

   1.   ?    Baseline
   2.   ?    Budgeted costs
   3.   ?    Estimates upon completion costs
   4.   ?    Scheduled costs

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4. Using the table below, which WBS element has a favourable cost variance of £150?
   

   WBS Element	BCWS	BCWP	ACWP
   P	£1,000	£1,100	£1,150
   Q	£2,000	£1,800	£2,100
   R	£1,000	£1,200	£1,050
   S	£2,000	£1,900	£1,800

    

   1.   ?    Element P
   2.   ?    Element Q
   3.   ?    Element R
   4.   ?    Element S

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5. What is the difference between the BCWP and the BCWS is referred to as?

   1.   ?    Schedule variance
   2.   ?    Cost variance
   3.   ?    Estimate of completion
   4.   ?    Actual cost of the work performed

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6. Using the table below, which of the following is correct?
   

   WBS Element	BCWS	BCWP	ACWP
   P	£1,000	£1,100	£1,150
   Q	£2,000	£1,800	£2,100
   R	£1,000	£1,200	£1,050
   S	£2,000	£1,900	£1,800

    

   1.   ?    WBS Element Q is over budget by 16.66 per cent.
   2.   ?    WBS Element Q is under budget by 16.66 per cent.
   3.   ?    WBS Element Q is over budget by 10.0 per cent.
   4.   ?    WBS Element Q is under budget by 10.0 per cent.

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7. Using the table below, which WBS element is behind schedule but under budget?
   

   WBS Element	BCWS	BCWP	ACWP
   P	£1,000	£1,100	£1,150
   Q	£2,000	£1,800	£2,100
   R	£1,000	£1,200	£1,050
   S	£2,000	£1,900	£1,800

    

   1.   ?    Element P
   2.   ?    Element Q
   3.   ?    Element R
   4.   ?    Element S

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8. Budgeted cost of the work performed (BCWP) for a task that has just been completed can be calculated by which of the following methods?

   1.   ?    Multiplying the actual hours worked on the task by the budgeted labour rate.
   2.   ?    Multiplying the budgeted hours to complete the task by the budgeted labour rate.
   3.   ?    Dividing the actual hours required to complete the task by the budgeted labour rate.
   4.   ?    Dividing the budgeted hours required to complete the task by the budgeted labour rate.

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9. The formula, EAC = BAC/CPI, assumes which of the following?

   1.   ?    All work downstream will be completed at the planned expenditure.
   2.   ?    All work downstream will be completed at the planned expenditures, excluding the work packages currently under way.
   3.   ?    All work downstream will be completed based upon the current cost efficiency.
   4.   ?    The cost efficiency cannot change during the project.

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10. Using the table below, which of the following is correct?
    

    Month	BCWS	BCWP	ACWP
    June	£34,000	£34,000	£33,000
    July	£18,000	£16,000	£20,000
    August	£58000	£60,000	£66,000

     

    1.   ?    A comparison of the cost variance of August as compared to that of July shows that the magnitude (£ value) of the variance has become worse and the percentage change has become worse.
    2.   ?    A comparison of the cost variance of August as compared to that of July shows that the magnitude (£ value) of the variance has become worse and the percentage change has improved.
    3.   ?    A comparison of the cost variance of August as compared to that of July shows that the magnitude (£ value) of the variance has improved and the percentage change has improved.
    4.   ?    A comparison of the cost variance of August as compared to that of July shows that the magnitude (£ value) of the variance has improved and the percentage change has become worse.

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11. If the actual cost to date for your project is £12,000 and the budgeted cost for the work scheduled to date is £10,000, then which of the following is correct?

    1.   ?    The project is ahead of schedule.
    2.   ?    The project is under budget.
    3.   ?    The project is ahead of schedule and under budget.
    4.   ?    The status is unknown without further information.

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12. For the figure shown, which of the following is correct?

    1.   ?    The status of the project is over budget.
    2.   ?    The status of the project is under budget.
    3.   ?    The status of the project is ahead of schedule.
    4.   ?    The status of the project is behind schedule.

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13. Using the table below and based upon sterling, what is the actual per cent complete?
    Current Period Cumulative
    

    Current Period			Cumulative
    BCWS	BCWP	ACWP	BCWS	BCWP	ACWP	BAC
    40	45	50	450	500	600	1,000

     

    1.   ?    40%
    2.   ?    45%
    3.   ?    50%
    4.   ?    60%

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14. For the figure shown, what is the status of the project?

    1.   ?    Over budget
    2.   ?    Under budget
    3.   ?    Ahead of schedule
    4.   ?    Behind schedule

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15. In the early stages of a project, the allowable cumulative cost variances are
    +/-20%. Given the data below, which elements require an explanation? (Note: figures in millions of pounds).
    

    Item	BCWS	BCWP	ACWP
    P	5	6	8
    Q	12	8	9
    R	13	10	12
    S	11	11	9

     

    1.   ?    P and R
    2.   ?    P, Q, and R
    3.   ?    Q, R and S
    4.   ?    P, Q, and S