PMP Practice Questions: Project Cost Management Domain

Published: June 12, 2025 | 5 min read

Test your PMP knowledge with 5 practice questions from the Project Cost Management domain. Includes detailed explanations and answers.

PMP Practice Questions

Master the Project Cost Management Domain

Test your knowledge in the Project Cost Management domain with these 5 practice questions. Each question is designed to help you prepare for the PMP certification exam with detailed explanations to reinforce your learning.

Question 1

In a hybrid project, the project manager is tasked with ensuring that cost management practices are effectively communicated to the team. What strategy should the project manager employ?

A) Hold regular cost management training sessions for the team.

B) Develop a detailed cost management communication plan.

C) Rely on team leads to disseminate cost information.

D) Focus on predictive cost management practices as they are more established.

Show Answer & Explanation

Correct Answer: B

Explanation: {"CORRECT":"A communication plan ensures that cost management practices are consistently and effectively communicated to the team.","OPTION A":"Training is useful but may not cover ongoing communication needs.","OPTION B":"A communication plan ensures consistent and effective dissemination of cost management practices.","OPTION C":"Relying on team leads may lead to inconsistencies.","OPTION D":"Focusing solely on predictive practices may overlook agile needs."}

Question 2

In an agile project, the project manager is responsible for ensuring that the project delivers maximum value within the budget constraints. Midway through the project, the team identifies a feature that could significantly enhance product value but requires additional resources. What should the project manager do?

A) Add the feature to the backlog and prioritize it for the next sprint.

B) Discuss the feature with stakeholders to assess its value against budget constraints.

C) Allocate resources from less critical tasks to develop the feature.

D) Ignore the feature to keep the project within budget.

Show Answer & Explanation

Correct Answer: B

Explanation: {"CORRECT":"Engaging stakeholders helps balance the feature's value against budget constraints and ensures alignment with project goals.","OPTION A":"Prioritizing without stakeholder input may lead to misalignment with project objectives.","OPTION B":"Discussing with stakeholders ensures that decisions are aligned with project value and constraints.","OPTION C":"Reallocating resources without stakeholder input may harm other project areas.","OPTION D":"Ignoring the feature could result in missed opportunities for value enhancement."}

Question 3

You are using parametric estimating to estimate the cost of a software development project. What information would you need?

A) The number of lines of code and the cost per line of code.

B) The number of team members and their individual salaries.

C) Historical data from similar projects.

D) Expert opinions on the project's complexity.

Show Answer & Explanation

Correct Answer: A

Explanation: Parametric estimating uses statistical relationships between project parameters (like lines of code) and cost. Option A directly reflects this.

Question 4

In a predictive project, the project manager is asked to cut costs without affecting the project scope. Which approach should the project manager consider first?

A) Reduce quality standards

B) Negotiate lower rates with suppliers

C) Delay non-critical activities

D) Reduce project team size

Show Answer & Explanation

Correct Answer: B

Explanation: {"CORRECT":"Negotiating lower rates with suppliers can reduce costs without impacting scope or quality.","A":"Reducing quality standards can impact project deliverables and client satisfaction.","B":"Negotiating with suppliers is a direct cost-saving measure.","C":"Delaying activities may affect the schedule rather than reduce costs.","D":"Reducing team size can impact project delivery and morale."}

Question 5

In a hybrid project, the project manager is tasked with integrating cost management across both predictive and agile elements. What approach should the project manager take to ensure seamless integration?

A) Use a unified cost management tool for both elements.

B) Develop separate cost management strategies for each element.

C) Align cost management practices with the overall project governance framework.

D) Focus on predictive cost management techniques as they are more established.

Show Answer & Explanation

Correct Answer: C

Explanation: {"CORRECT":"Aligning practices with the governance framework ensures consistency and integration across the project.","OPTION A":"A single tool may not address the unique needs of both elements.","OPTION B":"Separate strategies may lead to inconsistencies.","OPTION C":"Alignment ensures seamless integration and consistency.","OPTION D":"Focusing solely on predictive techniques may overlook agile needs."}

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About PMP Certification

The PMP certification validates your expertise in project cost management and other critical domains. Our comprehensive practice questions are carefully crafted to mirror the actual exam experience and help you identify knowledge gaps before test day.