PMI-SP Exam - Topic 1 Question 72 Discussion

Actual exam question for PMI's PMI-SP exam

Question #: 72
Topic #: 1

You are the project manager of the NHA Project. This project is expected to last one year with quarterly milestones throughout the year. Your project is supposed to be at the third milestone today, but you are likely to be only 60 percent complete. Your project has a BAC of $745,000 and you have spent $440,000 of the budget-to-date. What is your cost variance for this project?

A11,667

B$-111,750

CThere is no variance.

D$7,000

Show Suggested Answer

Suggested Answer: A

The float for Activity I is three days. The early start for Activity I is Day 17 and the late start for

Activity I is Day 20. Therefore, the difference of

the early start and the late start reveals the float as three days. It is possible, and acceptable, to use

the difference of the early finish and the late finish to find the float, as the value will be the same

amount. Answer options B, D, and C are incorrect. These are not the valid calculation for the total

float.

by Jettie at Mar 07, 2024, 01:01 AM

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Linn

10 months ago

Totally agree, that sounds about right!

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Elise

10 months ago

Wait, how can we be only 60% done but have spent so much?

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Dorthy

10 months ago

I think it’s around -$111,750, right?

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Sang

10 months ago

Cost variance is definitely negative here.

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Lindsey

11 months ago

The BAC is $745,000 and we've spent $440,000 so far.

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Odelia

11 months ago

I feel like I should just plug in the numbers, but I keep mixing up the terms. Is it possible that the variance could be zero if we're behind schedule?

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Diane

11 months ago

I practiced a similar question where we had to find the cost variance, and I think the answer was negative, indicating we're over budget.

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Lawana

11 months ago

I remember something about the formula being CV = EV - AC, but I can't recall how to calculate EV with the BAC and percentage complete.

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Kattie

11 months ago

I think the cost variance is calculated by subtracting the actual cost from the earned value, but I'm not entirely sure how to find the earned value here.

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Paulene

11 months ago

Alright, time to put my project management skills to the test. I'll start by calculating the Earned Value, then subtract the Actual Cost to find the Cost Variance. Gotta show my work to get full credit on this one.

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Jerrod

11 months ago

I've got this! The key is to use the formula: Cost Variance = Earned Value - Actual Cost. With the given BAC, actual cost, and percent complete, I can plug those numbers in and solve for the cost variance.

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Casandra

11 months ago

I'm a bit confused on how to approach this. Can someone walk me through the formula for calculating cost variance? I want to make sure I have the right approach before diving in.

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Major

11 months ago

Okay, let me think this through step-by-step. I need to find the expected cost at the third milestone and compare it to the actual cost spent so far to determine the cost variance.

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Vicente

11 months ago

Hmm, this looks like a tricky one. I'll need to carefully calculate the cost variance based on the given information about the project's budget, spending, and completion status.

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Christiane

12 months ago

I think the key steps here are to use the pack and unpack tools to transfer the domain configuration to the new machine. The Configuration Wizard could also be useful for cloning the domain.

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Taryn

12 months ago

I'm pretty confident on this one. The Extract process is the one that writes to the trail files, so it makes sense that it would be the one to include the PURGEOLDEXTRACTS parameter to clean them up. The Replicat process just reads from the trail files, so it wouldn't be responsible for managing them.

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Mozell

1 year ago

Wait, so the project is only 60% complete but they've already spent over 50% of the budget? This project manager must be cooking the books or something. I'm going with B) $-111,750 and hoping they get fired.

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Francene

1 year ago

I'm going with D) $7,000. I know it's not the most obvious answer, but maybe the project manager is a wizard and has somehow managed to keep the costs in check despite the schedule slip. I'm feeling lucky with this one!

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Ailene

1 year ago

D) $7,000

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Launa

1 year ago

B) $-111,750

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Detra

1 year ago

A) 11,667

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Matthew

1 year ago

Haha, 'no variance'? That's a good one! With this much of a budget and schedule slip, I'd be surprised if there wasn't a significant cost variance. B) $-111,750 is my pick.

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Fletcher

1 year ago

Let's hope we can get back on track and improve our cost performance in the next milestone.

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Dana

1 year ago

Yeah, it's definitely not a 'no variance' situation with the budget and schedule slip we're facing.

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Tamar

1 year ago

I agree, B) $-111,750 seems like the most likely cost variance given the situation.

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Kristine

1 year ago

C) There is no variance? Are you kidding me? With a 60% completion and $440,000 spent out of a $745,000 budget, there's clearly a cost variance. I'm going with B.

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Lakeesha

1 year ago

Yeah, definitely not C. B makes the most sense with the information given.

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Paz

1 year ago

I think you're right, B seems like the correct answer.

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Ronald

1 year ago

I believe the correct answer is B) $-111,750 because the formula for cost variance is EV - AC, and in this case, it is $745,000 - $440,000.

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Alesia

1 year ago

I agree with Lawrence. The cost variance is negative because we are over budget.

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Dalene

1 year ago

I think the answer is B) $-111,750. The cost variance is the difference between the budgeted cost and the actual cost, and with the given information, that's the correct answer.

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