Exam 9: Budgeting Projects

Recurring costs tend to occur during project planning and closing while nonrecurring costs tend to occur during project execution.

Which of the following terms best describes the amount of funds needed above the estimate to reduce the risk of overruns?

Direct costs typically include the cost of direct labor as well as other direct costs for items such as material,travel,subcontracts and computer time.

Costs that repeat as project work continues such as writing code are appropriately classified as:

The document that establishes the activities and criteria for planning,structuring and controlling the project costs is the project financial plan.

On small projects,the cost management plan may simply address the accuracy of estimating,the source of funding and cost reporting procedures.

All of the following factors must be in place in order to develop an analogous estimate effectively EXCEPT:

Which estimating technique uses a statistical relationship between historical data and other variables to calculate project costs?

The process of developing an approximation of the cost of the resources needed to complete project activities is known as:

Both normal and special cause variation add to project cost and need to be considered by project managers.

Vendor bid analysis is used to determine whether the price being asked by the vendors appears to be reasonable.

Which estimating technique uses the cost from a previous project along with measures of scale to estimate the cost for a similar,future project?

In addition to optimizing project costs,value engineering can also be used to expand market share.

What type of cost is incurred when a project must be conducted faster than normal and overtime for workers and rapid delivery charges are necessary?

The approved time-phased budget against which project execution is compared and deviations are measured for management control is known as:

Complex projects such as research and development projects often employ rolling wave planning to estimate project costs. Which of the following best describes "rolling wave" planning?

The cost management plan establishes the format and criteria for planning and controlling the project costs.

Fixed costs remain constant over time,whereas variable costs may change directly as a function of time.

Determine Budget is the process of aggregating the estimated costs of individual activities or work packages to establish a cost baseline.

Activity based costing allocates indirect costs based on different types of cost drivers. Which of the following cost drivers serve as a basis of allocation when activity based costing is used?