CAPM Exam 8 – Project Cost Management Questions with Answers

The Certified Associate in Project Management (CAPM) certification is a valuable entry-level credential for project management professionals.

One of the critical areas covered in the CAPM exam is Project Cost Management. The Acadlly Exams platform offers comprehensive practice questions to help candidates prepare effectively. Here, we present some sample questions and answers, followed by frequently asked questions (FAQs) to guide your preparation.

Sample Questions and Answers

Question 1: What is Project Cost Management?
A. The process of estimating, budgeting, and controlling costs so the project can be completed within the approved budget.
B. The process of defining and controlling what is included in the project.
C. The process of monitoring and controlling project scope.
D. The process of managing stakeholder expectations.

Answer: A. The process of estimating, budgeting, and controlling costs so the project can be completed within the approved budget.

Question 2: Which tool or technique is used for estimating costs?
A. Work Breakdown Structure (WBS)
B. Parametric estimating
C. Risk analysis
D. Project charter

Answer: B. Parametric estimating

Question 3: What is the main output of the Determine Budget process?
A. Cost baseline
B. Project funding requirements
C. Cost estimates
D. Performance reviews

Answer: A. Cost baseline

Question 4: Which of the following is NOT a part of the Control Costs process?
A. Earned value management
B Forecasting
C. Reserve analysis
D. Scope verification

Answer: D. Scope verification

Question 5: In earned value management, what does the acronym CPI stand for?
A. Cost Performance Index
B. Cost Project Index
C. Current Performance Index
D. Cumulative Performance Index

Answer: A. Cost Performance Index

Frequently Asked Questions (FAQs)

Q1: What is the importance of Project Cost Management in project management?

A1: Project Cost Management is crucial as it ensures that the project is completed within the approved budget. It involves planning, estimating, budgeting, financing, funding, managing, and controlling costs, which helps in maintaining the financial health of the project.

Q2: How does the Acadlly Exams platform help in preparing for the CAPM exam?

A2: Acadlly Exams provides a wide range of practice questions, detailed explanations, and simulated exams that mimic the actual CAPM exam format. This helps candidates familiarize themselves with the types of questions they will encounter and improve their understanding of the Project Cost Management domain.

Q3: What are some effective strategies for studying Project Cost Management?

A3: Effective strategies include:
– Understanding key concepts and terminology.
– Practicing cost estimation techniques and tools.
– Reviewing case studies and real-world examples.
– Taking practice exams to identify strengths and weaknesses.
– Joining study groups or forums to discuss topics and clarify doubts.

Q4: What are the key processes involved in Project Cost Management?

A4: The key processes in Project Cost Management are:
Plan Cost Management: Establishing policies, procedures, and documentation for planning, managing, expending, and controlling project costs.
Estimate Costs: Developing an approximation of the monetary resources needed to complete project activities.
Determine Budget: Aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
Control Costs: Monitoring the status of the project to update the project costs and managing changes to the cost baseline.

Q5: How can I access the practice questions on the Acadlly Exams platform?

A5: You can access the practice questions by registering on the Acadlly Exams website. Once registered, you can choose the CAPM exam preparation module and start practicing with the available resources.

Preparing for the CAPM exam requires a thorough understanding of various project management knowledge areas, including Project Cost Management.

Utilizing resources like the Acadlly Exams platform can significantly enhance your preparation by providing practice questions and simulated exams.

Focus on understanding the core concepts, practicing regularly, and utilizing all available resources to increase your chances of success on the CAPM exam.