Cost Performance — PMP - Project Management Professional Practice Questions
Cost performance on the PMP exam encompasses the monitoring and controlling of project expenditures against the approved cost baseline, including variance analysis, trend identification, and corrective action. Key metrics include cost variance (earned value minus actual cost) and the cost performance index, which together inform whether the project budget is on track and whether current spending trends will result in a final cost within the approved budget. Candidates must understand when to escalate cost variances, how to update forecasts, and what management reserve versus contingency reserve covers.
Free questions on cost performance
A project manager discovers that the project is 10% over budget at the halfway point. Which metric shows this?
Free question · medium · full answer + explanation
More cost performance questions in the full bank
- The To-Complete Performance Index (TCPI) for a project is 1.15. What does this mean? Unlock answer & explanation →
- You notice that actual project expenditures are running 5% behind the planned budget. What should you analyze FIRST? Unlock answer & explanation →