Question 1

Which of the following is not a typical view of cost?

Accepted Answer

A)  A commitment to pay someone for resources or services. 
B)  An expense when an invoice is received. 
C)  When an invoice is posted. 
D)  When the invoice is paid. 
A)  A commitment to pay someone for resources or services. 
B)  An expense when an invoice is received. 
C)  When an invoice is posted. 
D)  When the invoice is paid.

Question 2

Project budget is nothing more than the project plan, based on the WBS, expressed in monetary terms.

Accepted Answer

A) True 
 B)False

Question 3

A budget is a plan for allocating resources.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Victor, a project manager, is constructing a budget for a project to construct a house. He estimates that the materials will cost $100,000 and the project will require 15 people working 6 hours a day to ensure timely completion. He estimates the cost of labor at $15 per hour. Additional costs, safety equipment, and overheads are marked at a rate of 50 percent of direct labor. In this scenario, the total cost of the project will be _____.

Accepted Answer

A)  $120,000 
B)  $102,025 
C)  $100,090 
D)  $100,900 
E)  $110,510 
A)  $120,000 
B)  $102,025 
C)  $100,090 
D)  $100,900 
E)  $110,510

Question 6

Organizational tradition has little or no impact on the firm's project budgeting.

Accepted Answer

A) True 
 B)False

Question 7

Briefly contrast the three different perspectives cost can be viewed from.

Accepted Answer

In the process of gaining familiarity wi

Question 8

Traditional organizational budgets are task-oriented, rather than activity-oriented.

Accepted Answer

A) True 
 B)False

Question 9

Most organizations use top-down budgeting.

Accepted Answer

A) True 
 B)False

Question 10

Pogmon Solutions, a computer manufacturer, is introducing a new product-a high-end gaming laptop. Its technicians take 21 hours to produce the first unit of the laptop, and the company follows a 78 percent learning curve. Given this information, the eighth unit of the laptop would approximately require _____.

Accepted Answer

A)  8 hours 
B)  6 hours 
C)  5 hours 
D)  10 hours 
E)  2 hours 
A)  8 hours 
B)  6 hours 
C)  5 hours 
D)  10 hours 
E)  2 hours

Question 11

Expected value is a tool for risk analysis.

Accepted Answer

A) True 
 B)False

Question 12

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 13

Mathematically, the learning curve can be expressed as Tn=T1×nr.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 17

Boston's Big Dig highway/tunnel project is one of the few large construction projects to be finished both on time and under budget.

Accepted Answer

A) True 
 B)False

Question 18

Define the term learning rate.

Accepted Answer

In general, it has been found that unit

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Direct resource costs such as for materials and machinery needed solely for a particular project are usually charged to the project without an overhead add-on.

Accepted Answer

A) True 
 B)False

Which of the following is not a typical view of cost?

Project budget is nothing more than the project plan, based on the WBS, expressed in monetary terms.

A budget is a plan for allocating resources.

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

Organizational tradition has little or no impact on the firm's project budgeting.

Briefly contrast the three different perspectives cost can be viewed from.

Traditional organizational budgets are task-oriented, rather than activity-oriented.

Most organizations use top-down budgeting.

Expected value is a tool for risk analysis.

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

Mathematically, the learning curve can be expressed as Tn=T1×nr.

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

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

Boston's Big Dig highway/tunnel project is one of the few large construction projects to be finished both on time and under budget.

Define the term learning rate.

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

Direct resource costs such as for materials and machinery needed solely for a particular project are usually charged to the project without an overhead add-on.

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

Which of the following is not a typical view of cost?

Project budget is nothing more than the project plan, based on the WBS, expressed in monetary terms.

A budget is a plan for allocating resources.

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

Organizational tradition has little or no impact on the firm's project budgeting.

Briefly contrast the three different perspectives cost can be viewed from.

Traditional organizational budgets are task-oriented, rather than activity-oriented.

Most organizations use top-down budgeting.

Expected value is a tool for risk analysis.

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

Mathematically, the learning curve can be expressed as Tn=T1×nr.

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

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

Boston's Big Dig highway/tunnel project is one of the few large construction projects to be finished both on time and under budget.

Define the term learning rate.

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

Direct resource costs such as for materials and machinery needed solely for a particular project are usually charged to the project without an overhead add-on.

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