Adobe Workfront Project Manager Professional Certification Practice Exam

Which parameters are necessary to compare the actual labor cost to the planned labor cost in a project report?

1. Planned Labor Cost and Actual Labor Cost

2. Budgeted Labor Cost and Actual Labor Cost

3. Budgeted Labor and Time Estimate

4. Estimated Labor Cost and Actual Project Hours

The correct answer is: Budgeted Labor Cost and Actual Labor Cost

To compare the actual labor cost to the planned labor cost in a project report effectively, the necessary parameters are the budgeted labor cost and the actual labor cost. Budgeted labor cost represents the financial resources allocated for labor before project execution, providing a baseline for measuring performance. This allows project managers to establish expectations regarding how much labor is anticipated to cost over the project duration. Actual labor cost, on the other hand, reflects the real expenditures incurred during the project execution phase. By comparing these two figures, project managers can assess whether the project is on track financially concerning its labor expenses. The consideration of budgeted labor cost and actual labor cost is critical in financial analysis, as it enables a direct evaluation of cost variances. Recognizing discrepancies between the planned and actual costs can lead to timely corrective actions to keep the project within fiscal parameters. The other options, while related to aspects of project costing, do not align specifically with the direct comparison of actual versus planned labor costs. For instance, estimates of labor and time may include various assumptions and projections, but they do not necessarily provide the concrete comparison needed to analyze financial performance critically.