1. Shifting funds to offset increased vendor cost is called:

❌ Setting the baseline
❌ Reserve analysis
✅ Reforecasting
❌ Cost of quality

Explanation:
Reforecasting means updating the budget to reflect new cost realities.

---

2. Example of planned vs. actual cost

❌ Planning job board costs ($300)
✅ Estimating labor cost, then tracking actual hours worked
❌ Gathering historical data but not updating actuals
❌ Reserving 5% for unexpected costs

Explanation:
Planned vs. actual compares what you budgeted versus what it truly cost.

---

3. Identifying factors that impact expenses & minimizing their effect

✅ Cost control
❌ Baselining the budget
❌ Estimating cost
❌ Bottom-up approach

Explanation:
Cost control involves monitoring and managing cost risks proactively.

---

4. Researching, sourcing, and managing a service supplier is:

❌ Cost management
❌ Performance management
❌ Budget management
✅ Vendor management

Explanation:
Vendor management is the process of selecting and maintaining supplier relationships.

---

5. Section of the SoW that includes desired project outcomes

❌ Scope
❌ Deliverables
❌ Major milestones
✅ Purpose

Explanation:
The purpose section explains why the project exists and the intended outcomes.

---

6. What justifies sole-supplier sourcing?

✅ The company is cautious about exposing trade secrets.
❌ Supplier offers a discount
❌ Sponsor request
❌ Supplier used in past projects

Explanation:
Sole-source procurement is justified for confidentiality or highly specialized needs.

---

7. Which is an indirect cost?

❌ Equipment rental
❌ Wages & salaries
❌ Training
✅ Security

Explanation:
Indirect costs support the project but are not tied to a specific task (e.g., security, utilities).

---

8. Phase where PM makes payments, sets logistics, ensures agreements met

❌ Selecting
❌ Initiating
✅ Controlling
❌ Completing

Explanation:
Controlling ensures vendor performance, payment schedules, and contract compliance.

---

9. Stakeholder sets budget before project begins → Term is:

❌ Budget pre-allocation
✅ Budget predetermination
❌ Budget forecasting
❌ Budget limitations

Explanation:
Predetermination refers to a preset budget before planning begins.

---

10. Budgeting usually takes place at the same time as:

❌ Delivery
✅ Scheduling
❌ Production
❌ Procurement

Explanation:
Budget planning and scheduling are interlinked—you must know time to estimate cost.

---

🧾 Summary Table

---