Vendor: PMI Exam Code: PMP Exam Name: PMP - Project Management Professional v5 (PMI-001) Question 151â&#x20AC;&#x201D;Question 160 Click to Download All PMP Q&As From Lead2pass QUESTION 151 According to learning curve theory, when many items are produced repetitively______________ A. Unit costs decrease geometrically as production rates increase linearly B. Unit costs decrease as production rates increase C. Unit costs decrease in a regular pattern as more units are produced D. Costs of training increase as the level of automation increases Answer: C Explanation: Learning curve theory indicates that human performance usually improves when a task is repeated. Specifically, each time output doubles, worker hours per unit decrease by a fixed percentage. This percentage is called the learning rate. Meredith and Mantel 2012, 301-303

QUESTION 152 The method of calculating the EAC by assuming the ETC work will be performed at the same cumulative CPI incurred by the project to date is used most often when______________ A. Current variances are viewed as atypical ones

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B. Original estimating assumptions are no longer reliable because conditions have changed C. Current variances are viewed as typical of future variances D. Original estimating assumptions are considered to be fundamentally flawed Answer: C Explanation: Past performance is indicative of future performance; therefore, EAC = BAC/CPI.

QUESTION 153 Increased attention to return on investment (ROI) now requires you to complete a financial analysis of the payback period on your project. Such an analysis identifies the______________ A. Ratio of discounted revenues over discounted costs B. Future value of money invested today C. Amount of time before net cash flow becomes positive D. Point in time where costs exceed profit Answer: C Explanation: Payback period analysis determines the time required for a project to recover the investment in it and become profitable. A weakness of this approach is a lack of emphasis on the magnitude of the profitability.

QUESTION 154 A revised cost baseline may be required in cost control when______________ A. CVs are severe, and a realistic measure of performance is needed B. Updated cost estimates are prepared and distributed to stakeholders C. Corrective action must be taken to bring expected future performance in line with the project plan D. EAC shows that additional funds are needed to complete the project even if a scope change is not needed Answer: A Explanation: After the CVs exceed certain ranges, the original project budget may be questioned and changed as a result of new information.

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QUESTION 155 As project manager, you identified a number of acceptable tolerances as part of your earned value management system. During execution, some "unacceptable" variances occurred. After each "unacceptable" variance occurred, you did which one of the following first? A. Updated the budget B. Prepared a revised cost estimate C. Adjusted the project plan D. Documented lessons learned Answer: D Explanation: Lessons learned but not documented are "lessons lost." The lessons learned knowledge database will help current project members, as well as people on future projects, make better decisions. Accordingly, the reasons for the variance, the rationale supporting the corrective action, and other related information must be documented. They require updates as part of updates to organizational process assets as an output of control costs in terms of corrective actions taken and why they were selected.

QUESTION 156 Assume that the project cost estimates have been prepared for each activity and the basis of these estimates has been determined. Now, as the project manager for your nutrition awareness program in your hospital, you are preparing your budget. Because you have estimates for more than 1,200 separate activities, you have decided to first______________ A. Aggregate these estimates by work packages B. Aggregate these estimates by control accounts to facilitate the use of earned value management C. Use the results of previous projects to predict total costs D. Set your cost performance baseline Answer: A Explanation: The WBS provides the relationship among all the project deliverables and their components and should be reviewed before the budget is developed. As the budget is determined, the cost estimates for the activities should be aggregated by the work packages in the WBS. Then, later, they are aggregated for the control accounts and finally for the entire project.

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QUESTION 157 The cumulative cost curve for planned and actual expenditures______________ A. Helps to monitor project performance at a glance B. Is used for calculating the CPI C. Is also known as a histogram D. Forecasts total project expenditures Answer: A Explanation: Cost curves for planned and actual expenditures are created by adding each month's costs to the previous reporting period's expenditures. By doing so, one can quickly see how the project is performing.

QUESTION 158 The reason that the cost performance index (CPI) is shown as a ratio is to______________ A. Enable a detailed analysis of the schedule regardless of the value of the schedule variance B. Distinguish between critical path and noncritical path work packages C. Provide the ability to show performance for a specified time period for trend analysis D. Measure the actual time to complete the project Answer: C Explanation: Because schedule performance index (SPI) and cost performance index (CPI) are expressed as ratios, they can be used to show performance for a specific time period or trends over a long-time horizon. Additionally, there is no need to disclose confidential financial data to convey the project's status to one's customers; they should not have a need to know such information, unless there is a contractual requirement to do so.

QUESTION 159 Assume that your actual costs are \$800; your planned value is \$1,200; and your earned value is \$1,000. Based on these data, what can be determined regarding your schedule variance? A. At +\$200, the situation is favorable as physical progress is being accomplished ahead of your plan.

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B. At -\$200, the physical progress is being accomplished at a slower rate than is planned, indicating an unfavorable situation. C. At +\$400, the situation is favorable as physical progress is being accomplished at a lower cost than was forecasted. D. At -\$200, you have a behind-schedule condition, and your critical path has slipped. Answer: B Explanation: Schedule variance is calculated: EV - PV or \$1,000 - \$1,200 = -\$200. Because the SV is negative, physical progress is being accomplished at a slower rate than planned.

QUESTION 160 The CPI on your project is 0.84. This means that you should______________ A. Place emphasis on improving the timeliness of the physical progress B. Reassess the life-cycle costs of your product, including the length of the life-cycle phase C. Recognize that your original estimates were fundamentally flawed, and your project is in an atypical situation D. Place emphasis on improving the productivity by which work was being performed Answer: D Explanation: CPI = EV/AC and measures the efficiency of the physical progress accomplished compared to the baseline. A CPI of 0.84 means that for every dollar spent, you're only receiving 84 cents of progress. Therefore, you should focus on improving the productivity by which work is being performed.

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