Question 1

For projects with S-shaped life cycles, top-down budgeting is most likely unacceptable.

Accepted Answer

A) True 
 B)False

Question 2

A key advantage of top-down budgeting is that the overall budget costs can be estimated quite accurately.

Accepted Answer

A) True 
 B)False

Question 3

A task is expected to take 20 hours of labor at $25 per hour. The required material cost is $500 and the organization charges 30% of direct labor for overhead. The total task cost is:

Accepted Answer

A)  $500 
B)  $1,150 
C)  $1,250 
D)  $1,300 
E)  $1,500 
A)  $500 
B)  $1,150 
C)  $1,250 
D)  $1,300 
E)  $1,500

Question 4

Define the term learning rate.

Accepted Answer

In general, it has been found that unit

Question 5

Most organizations use top-down budgeting.

Accepted Answer

A) True 
 B)False

Question 6

Explain the concept of Brook's "mythical man month."

Accepted Answer

Brook's "mythical man-month" effect, whi

Question 7

Contingency planning is generally begun at that point in time when an organization finds itself in serious financial trouble.

Accepted Answer

A) True 
 B)False

Question 8

There is no way other than guessing to estimate the impact of learning on a project's task.

Accepted Answer

A) True 
 B)False

Question 9

Budget cuts are usually disastrous to an exponential life-cycle project.

Accepted Answer

A) True 
 B)False

Question 10

Contrast between activity budgeting and program budgeting.

Accepted Answer

Traditional organizational budgets are t

Question 11

A budget is a plan for allocating resources.

Accepted Answer

A) True 
 B)False

Question 12

Organizations can use both top-down and bottom-up budgeting.

Accepted Answer

A) True 
 B)False

Question 13

Susan, a project manager, uses a work breakdown structure to list the elemental tasks of a project. She then asks the team members responsible for each of these tasks to give her an estimate of the cost required to accomplish each task. Next, she adds indirect costs such as administrative costs and a reserve for contingencies to the total task cost and files her budget with the accounting department. In this scenario, Susan is using _____.

Accepted Answer

A)  top-down budgeting 
B)  bottom-up budgeting 
C)  agile project budgeting 
D)  dynamic matrix budgeting 
E)  lateral budgeting 
A)  top-down budgeting 
B)  bottom-up budgeting 
C)  agile project budgeting 
D)  dynamic matrix budgeting 
E)  lateral budgeting

Question 14

The project's budget is merely the sum of its resource costs.

Accepted Answer

A) True 
 B)False

Question 15

Individual elements of project budgets are generally more accurate in bottom-up budgeting.

Accepted Answer

A) True 
 B)False

Question 16

The first unit required 6 hours. If the industry uses a 90 percent learning rate, how long should the fourth unit take?

Accepted Answer

A)  6 hours 
B)  4.86 hours 
C)  3.75 hours 
D)  3.34 hours 
E)  2.67 hours 
A)  6 hours 
B)  4.86 hours 
C)  3.75 hours 
D)  3.34 hours 
E)  2.67 hours

Question 17

The PMI does not devote much coverage to risk management in the PMBOK

Accepted Answer

A) True 
 B)False

Question 18

William, a project manager, needs to prepare the budget for a new software development project. To do so, he takes inputs from other managers who have worked on similar projects in the past. After estimating the overall project cost, he gives the estimates to his team members so that they can split up the cost of each individual task involved in producing the required deliverable. In this scenario, William is using _____.

Accepted Answer

A)  top-down budgeting 
B)  bottom-up budgeting 
C)  agile project budgeting 
D)  dynamic matrix budgeting 
E)  lateral budgeting 
A)  top-down budgeting 
B)  bottom-up budgeting 
C)  agile project budgeting 
D)  dynamic matrix budgeting 
E)  lateral budgeting

Question 19

Overhead and indirect charges should not be assigned to a project.

Accepted Answer

A) True 
 B)False

Question 20

The project manager recognizes an expense when an invoice is actually paid.

Accepted Answer

A) True 
 B)False

For projects with S-shaped life cycles, top-down budgeting is most likely unacceptable.

A key advantage of top-down budgeting is that the overall budget costs can be estimated quite accurately.

A task is expected to take 20 hours of labor at $25 per hour. The required material cost is $500 and the organization charges 30% of direct labor for overhead. The total task cost is:

Define the term learning rate.

Most organizations use top-down budgeting.

Explain the concept of Brook's "mythical man month."

Contingency planning is generally begun at that point in time when an organization finds itself in serious financial trouble.

There is no way other than guessing to estimate the impact of learning on a project's task.

Budget cuts are usually disastrous to an exponential life-cycle project.

Contrast between activity budgeting and program budgeting.

A budget is a plan for allocating resources.

Organizations can use both top-down and bottom-up budgeting.

The project's budget is merely the sum of its resource costs.

Individual elements of project budgets are generally more accurate in bottom-up budgeting.

The first unit required 6 hours. If the industry uses a 90 percent learning rate, how long should the fourth unit take?

The PMI does not devote much coverage to risk management in the PMBOK

Overhead and indirect charges should not be assigned to a project.

The project manager recognizes an expense when an invoice is actually paid.

The World of Project Management

The Manager, the Organization, and the Team

Planning the Project

Scheduling the Project

Allocating Resources to the Project

Monitoring and Controlling the Project

Evaluating and Terminating the Project

Filters

Exam 4: Budgeting the Project

For projects with S-shaped life cycles, top-down budgeting is most likely unacceptable.

A key advantage of top-down budgeting is that the overall budget costs can be estimated quite accurately.

A task is expected to take 20 hours of labor at $25 per hour. The required material cost is $500 and the organization charges 30% of direct labor for overhead. The total task cost is:

Define the term learning rate.

Most organizations use top-down budgeting.

Explain the concept of Brook's "mythical man month."

Contingency planning is generally begun at that point in time when an organization finds itself in serious financial trouble.

There is no way other than guessing to estimate the impact of learning on a project's task.

Budget cuts are usually disastrous to an exponential life-cycle project.

Contrast between activity budgeting and program budgeting.

A budget is a plan for allocating resources.

Organizations can use both top-down and bottom-up budgeting.

The project's budget is merely the sum of its resource costs.

Individual elements of project budgets are generally more accurate in bottom-up budgeting.

The first unit required 6 hours. If the industry uses a 90 percent learning rate, how long should the fourth unit take?

The PMI does not devote much coverage to risk management in the PMBOK

Overhead and indirect charges should not be assigned to a project.

The project manager recognizes an expense when an invoice is actually paid.

The World of Project Management

The Manager, the Organization, and the Team

Planning the Project

Scheduling the Project

Allocating Resources to the Project

Monitoring and Controlling the Project

Evaluating and Terminating the Project

Filters