CAPM (Certified Associate in Project Management) Practice Exam

How many processes are involved in Project Cost Management?

1. 3

2. 4

3. 5

4. 6

The correct answer is: 4

Project Cost Management involves four main processes which are 1. Plan Cost Management: This process involves determining the cost management policies, procedures, and documentation necessary for the project. 2. Estimate Costs: This process involves estimating the costs of the resources required to complete the project activities. 3. Determine Budget: This process involves aggregating the estimated costs of individual activities or work packages to establish a cost baseline. 4. Control Costs: This process involves monitoring the status of the project to update the project costs and managing changes to the cost baseline. Options A, C, and D have fewer or more than four processes listed, making them incorrect answers. Option A lists only three processes which does not account for the full scope of Project Cost Management. Options C and D list five and six processes respectively, which means they either combine two processes or include unrelated processes. Therefore, B is the correct answer as it accurately reflects the four processes involved in Project Cost Management.