Question

part 1)

The first step should be taken when doing a project closeout audit is:

Group of answer choices

identifying project success factors (areas where project performed better than expected).

identifying the areas of the project where problems took place.

validating the project costing data and making sure that costs were coded to the appropriate project and cost codes and all costs have been accounted for.

calculating the Cost Performance Index (CPI)

PART 2)

A Cost Performance Index (CPI) greater than 1.0 indicates a project is over the budget while a CPI less than 1.0 indicates a project is under the budget.

Group of answer choices

true

false

Answer 1

Part 1.

validating the project costing data and making sure that costs were coded to the appropriate project and cost codes and all costs have been accounted for.

First step to check whether project completed within given budget and cost has been accounted properly.

it has be validated with budgeted cost sheet.

Part 2

false

Cost performance index is used to compare budgeted cost to actual cost

Cost performance index = Budget cost / actual cost

If index is equal or more than 1 then cost is within the budgeted cost

if index is lower than 1 means actual cost is over budgeted cost