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PK0-004 · Question #924

Three months into a project, the project sponsor asks the project manager for the amount of money that has been spent on the project at that point. The project sponsor is asking for the:

The correct answer is A. AC. AC stands for Actual Cost - the total cost actually incurred and recorded in accomplishing work performed during a given time period. The sponsor is asking how much money has been spent to date, which is precisely what AC measures. ROI (Return on Investment) measures…

Project management concepts

Question

Three months into a project, the project sponsor asks the project manager for the amount of money that has been spent on the project at that point. The project sponsor is asking for the:

Options

  • AAC
  • BROI
  • CBAC
  • DCPI

How the community answered

(17 responses)
  • A
    94% (16)
  • B
    6% (1)

Explanation

AC stands for Actual Cost - the total cost actually incurred and recorded in accomplishing work performed during a given time period. The sponsor is asking how much money has been spent to date, which is precisely what AC measures. ROI (Return on Investment) measures profitability, BAC (Budget at Completion) is the total planned budget, and CPI (Cost Performance Index) is a ratio of earned value to actual cost - none of these represent money already spent.

Topics

#actual cost#earned value management#EVM#cost tracking

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