Question 1

The first unit requires 10 hours to complete. If the industry uses an 80 percent learning rate, how long should the third unit take?

Accepted Answer

A)  10 hours 
B)  9 hours 
C)  8 hours 
D)  7.02 hours 
E)  6.40 hours 
A)  10 hours 
B)  9 hours 
C)  8 hours 
D)  7.02 hours 
E)  6.40 hours

Question 2

The best approach to handling change in projects is to accept the negative change and take a loss on the project.

Accepted Answer

A) True 
 B)False

Question 3

The name given to the budget process that aggregates income and expenditures across projects is:

Accepted Answer

A)  activity-oriented budget 
B)  top-down budget 
C)  bottom-up budget 
D)  program-oriented budget 
E)  activity-based costing 
A)  activity-oriented budget 
B)  top-down budget 
C)  bottom-up budget 
D)  program-oriented budget 
E)  activity-based costing

Question 4

Explain how budget uncertainty changes as a project progresses.

Accepted Answer

In spite of the care and effort expended

Question 5

Victoria, an artisan who produces handcrafted furniture, has to carve six ornate chairs to go around a table. It takes her 10 hours to complete the first chair. She estimates that her learning rate is 80 percent. Given this information, Victoria should be able to make the second chair in _____.

Accepted Answer

A)  8 hours 
B)  6.3 hours 
C)  5.12 hours 
D)  3 hours 
E)  2.12 hours 
A)  8 hours 
B)  6.3 hours 
C)  5.12 hours 
D)  3 hours 
E)  2.12 hours

Question 6

Top-down budgeting typically results in better acceptance of the budget.

Accepted Answer

A) True 
 B)False

Question 7

Risk management includes what three areas?

Accepted Answer

In spite of the care and effort expended

Question 8

After major risk are identified which of the following data should NOT be obtained for analysis

Accepted Answer

A)  probability of each risk occurring 
B)  Range or distribution of possible outcomes 
C)  probability of each outcome 
D)  the expected time of each outcome 
E)  the person responsible for each outcome 
A)  probability of each risk occurring 
B)  Range or distribution of possible outcomes 
C)  probability of each outcome 
D)  the expected time of each outcome 
E)  the person responsible for each outcome

Question 9

Learning curves can be used to help improve cost estimates.

Accepted Answer

A) True 
 B)False

Question 10

Mechanical tasks typically have higher learning rates than more mental tasks.

Accepted Answer

A) True 
 B)False

Question 11

Rachel, a project manager, has undertaken a project to build a wall around a compound. She estimates that the cost of materials will be $520 and labor costs will be $10 for 20 hours. If the overheads for this project are 50 percent of the labor and material costs, the total cost will be:

Accepted Answer

A)  $1080. 
B)  $1,560. 
C)  $880. 
D)  $780. 
E)  $960. 
A)  $1080. 
B)  $1,560. 
C)  $880. 
D)  $780. 
E)  $960.

Question 12

The budgeting approach based on the collective judgments of top and middle managers is called:

Accepted Answer

A)  top-down budgeting 
B)  bottom-up budgeting 
C)  activity budgeting 
D)  program budgeting 
E)  life cycle budgeting 
A)  top-down budgeting 
B)  bottom-up budgeting 
C)  activity budgeting 
D)  program budgeting 
E)  life cycle budgeting

Question 13

There is a 30 percent chance that a new product development project will result in sales of $500,000 and a 70 percent chance that the project will result in sales of $100,000. What is the expected value of this project?

Accepted Answer

A)  $220,000 
B)  $240,000 
C)  $300,000 
D)  $320,000 
E)  $340,000 
A)  $220,000 
B)  $240,000 
C)  $300,000 
D)  $320,000 
E)  $340,000

Question 14

Explain how you would use the shape of a project's life cycle to resolve budget conflicts between a superior and subordinate.

Accepted Answer

If a project's life cycle is S-shaped, t

Question 15

As a project unfolds, the cost uncertainty increases as the project moves towards completion.

Accepted Answer

A) True 
 B)False

Question 16

Activity budgets show expenses by task and expected time period of the expenditure.

Accepted Answer

A) True 
 B)False

Question 17

Briefly explain how learning curves can help improve the cost estimating process.

Accepted Answer

The use of learning curves in project ma

Question 18

Bottom-up budgets are usually more accurate in the detailed tasks.

Accepted Answer

A) True 
 B)False

Question 19

Devon, a project manager, is working on a software development project. He needs more coders to complete the project on time. As a result, he hires people and they are given on-the-job training by their coworkers. However, this significantly reduces the output of the team and leads to a delay in the project. The given scenario exemplifies:

Accepted Answer

A)  integration management. 
B)  systems engineering. 
C)  the mythical man-month effect. 
D)  the boomerang effect. 
E)  the sleeper effect. 
A)  integration management. 
B)  systems engineering. 
C)  the mythical man-month effect. 
D)  the boomerang effect. 
E)  the sleeper effect.

Question 20

By very careful planning, a project manager can do away with cost uncertainty.

Accepted Answer

A) True 
 B)False

The first unit requires 10 hours to complete. If the industry uses an 80 percent learning rate, how long should the third unit take?

The best approach to handling change in projects is to accept the negative change and take a loss on the project.

The name given to the budget process that aggregates income and expenditures across projects is:

Explain how budget uncertainty changes as a project progresses.

Victoria, an artisan who produces handcrafted furniture, has to carve six ornate chairs to go around a table. It takes her 10 hours to complete the first chair. She estimates that her learning rate is 80 percent. Given this information, Victoria should be able to make the second chair in _____.

Top-down budgeting typically results in better acceptance of the budget.

Risk management includes what three areas?

After major risk are identified which of the following data should NOT be obtained for analysis

Learning curves can be used to help improve cost estimates.

Mechanical tasks typically have higher learning rates than more mental tasks.

Rachel, a project manager, has undertaken a project to build a wall around a compound. She estimates that the cost of materials will be $520 and labor costs will be $10 for 20 hours. If the overheads for this project are 50 percent of the labor and material costs, the total cost will be:

The budgeting approach based on the collective judgments of top and middle managers is called:

There is a 30 percent chance that a new product development project will result in sales of $500,000 and a 70 percent chance that the project will result in sales of $100,000. What is the expected value of this project?

Explain how you would use the shape of a project's life cycle to resolve budget conflicts between a superior and subordinate.

As a project unfolds, the cost uncertainty increases as the project moves towards completion.

Activity budgets show expenses by task and expected time period of the expenditure.

Briefly explain how learning curves can help improve the cost estimating process.

Bottom-up budgets are usually more accurate in the detailed tasks.

By very careful planning, a project manager can do away with cost uncertainty.

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

The first unit requires 10 hours to complete. If the industry uses an 80 percent learning rate, how long should the third unit take?

The best approach to handling change in projects is to accept the negative change and take a loss on the project.

The name given to the budget process that aggregates income and expenditures across projects is:

Explain how budget uncertainty changes as a project progresses.

Victoria, an artisan who produces handcrafted furniture, has to carve six ornate chairs to go around a table. It takes her 10 hours to complete the first chair. She estimates that her learning rate is 80 percent. Given this information, Victoria should be able to make the second chair in _____.

Top-down budgeting typically results in better acceptance of the budget.

Risk management includes what three areas?

After major risk are identified which of the following data should NOT be obtained for analysis

Learning curves can be used to help improve cost estimates.

Mechanical tasks typically have higher learning rates than more mental tasks.

Rachel, a project manager, has undertaken a project to build a wall around a compound. She estimates that the cost of materials will be $520 and labor costs will be $10 for 20 hours. If the overheads for this project are 50 percent of the labor and material costs, the total cost will be:

The budgeting approach based on the collective judgments of top and middle managers is called:

There is a 30 percent chance that a new product development project will result in sales of $500,000 and a 70 percent chance that the project will result in sales of $100,000. What is the expected value of this project?

Explain how you would use the shape of a project's life cycle to resolve budget conflicts between a superior and subordinate.

As a project unfolds, the cost uncertainty increases as the project moves towards completion.

Activity budgets show expenses by task and expected time period of the expenditure.

Briefly explain how learning curves can help improve the cost estimating process.

Bottom-up budgets are usually more accurate in the detailed tasks.

By very careful planning, a project manager can do away with cost uncertainty.

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