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Question of the Day
The project planning is progressing. But the team has become frustrated working with the accounting department to set up a system of codes that the accounting department will use to track work on the project. This is known as what?
A) Accounting codesB) WBS numbering
C) Cost budgeting
D) Chart of accounts
Terminology of the Day
Cost Management Plan
The document that explains how to handle project Cost Variances and other cost related items on the project
Answer and Explanation to Yesterday's Question
You are the Project Manager on a defense project. The buyer wants to get an idea on how much they will pay on cost overruns. With the following variables in mind, calculate the point of total assumption: Expected Cost=$120,000; Expected Profit=$36,000; Target Price=$156,000; Buyer/Share Ratio=75/25%; Ceiling Price=$150,000; Maximum Overrun=125%.
A) $112,000.00 (Correct)
B) $106,400.00
C) $117,600.00
D) $100,800.00
Explanation: The formula for point of total assumption (PTA) is (Ceiling Price-Target Price)/Buyer Share+Target Cost. $112,000.00 = ($150,000 - $156,000) / 0.75 + $120,000
For more questions, terminology and other exercises please see the PMP® Exam Success Series: Certification Exam Manual at http://www.crosswindpm.com/
TEST PRODUCT AD SECTION
PgMP Exam Review Terminology and Processes MP3 Audio CD
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The PgMP(sm) Exam Review: Terminology and Processes MP3 Audio CD is a key tool for anyone preparing for the PgMP(sm) exam. This CD has terminologies and descriptions of all 36 processes covered on the PgMP(sm) exam. The format describes each of the processes, where they occur and have impact, as well as a description of the process and key inputs, tools, and outputs. It's perfect for memorizing how all the pieces of the Program Management Standard fit together during that long commute to the office or that late night study session. |