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Cost Management Interview Question:

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A manufacturing project has a schedule performance index (SPI) of 0.89 and a cost performance index (CPI) of 0.91. Generally, what is the BEST explanation for why this occurred?

A. The scope was changed
B. A supplier went out of business and a new one needed to be found
C. Additional equipment needed to be purchased
D. A critical path activity took longer and needed more labor hours to complete

Submitted by: Administrator

D. A critical path activity took longer and needed more labor hours to complete
Submitted by:

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Top Cost Management Questions

☺	Which type of cost is team training? A. Direct B. NPV C. Indirect D. Fixed

☺

You have been asked to select between three projects. Project A has a net present value of $54,750 and will take six months to complete. Project B has a net present value of $85,100 and will take two years to complete. Project C has a net present value or $15,000 and a benefit-cost ratio of 5:2. Which project should you choose?

A. Project A
B. Project B
C. Project C
D. There is not enough information to decide.

☺	During which project management process group are budget forecasts created? A. Monitoring and controlling B. Planning C. Initiating D. Executing

☺	Project setup costs are an example of: A. Variable costs B. Fixed costs C. Overhead costs D. Opportunity costs

☺	Value analysis is performed to get: A. More value from the cost analysis B. Management to buy into the project C. The team to buy into the project D. A less costly way of doing the same work

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