AACE International Updated PSP Exam Questions and Answers by gruffydd

 Impact of Scope Definition on Cost Overruns:

Poor scope definition leads to unrealistic budgets and unforeseen changes, which significantly contribute to cost overruns.

Other factors like change management and WBS definitions are secondary contributors compared to scope inadequacy.

 PSP Study Guide References:

The guide emphasizes scope definition as a critical factor for accurate budgeting and planning​.

 Conclusion: The correct answer is D, as scope definition at the estimate stage has the most frequent and significant impact on cost overruns.

Defining the execution plan is the foundational step in creating a CPM schedule. This involves understanding the project's scope of work and outlining how it will be executed to meet project objectives.

Option A (bar chart) is a visualization step but does not address planning the sequence or scope execution.

Option C (resources) comes later in schedule development after the scope and plan are defined.

Option D (logic diagram) is a subsequent step that relies on the execution plan​​.

The PSP Study Guide emphasizes scope and execution planning as critical first steps​.

The cumulative cost baseline typically forms an "S" curve, reflecting slow initial expenditures, accelerating progress during peak activities, and tapering off as the project concludes.

Option A, B, and D do not represent the characteristic shape of a project's cost curve.

The PSP Study Guide highlights the "S" curve as a standard graphical representation of cumulative project costs over time​.