PK0-004 Question #969: Real Exam Question with Answer & Explanation

The correct answer is A: sunk cost.. This scenario describes two related but distinct financial concepts. Actual Cost (AC) (C) is the Earned Value Management (EVM) term for the total cost actually incurred in accomplishing work performed on a work package. The 90% of the budget already spent is, by definition, the a

Question

A project manager is analyzing a project's performance and notices the budget estimated to complete one of the work packages is 90% used, although only 50% of the tasks are completed. This is known as: (Choose two.)

Options

Asunk cost.
Bexpenditure reporting.
Cactual cost.
Dexpenditure tracking.
Eexpenditure control.
Fburn rate.

Explanation

This scenario describes two related but distinct financial concepts. Actual Cost (AC) (C) is the Earned Value Management (EVM) term for the total cost actually incurred in accomplishing work performed on a work package. The 90% of the budget already spent is, by definition, the actual cost. Sunk Cost (A) refers to money already spent that cannot be recovered - regardless of future project performance, that 90% is gone and is a sunk cost. The combination of these two terms accurately describes the financial state: the money spent is both the EVM actual cost and an irrecoverable sunk cost. Options B, D, and E (expenditure reporting, tracking, and control) describe processes, not measurements of a specific financial state. Burn rate (F) describes the speed at which budget is consumed over time - while implied by the scenario, it is not the term that directly names what the 90% figure represents.

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