Question 1

With top-down budgeting, overlooking a small but important task can often cause a serious budgetary problem.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Sean, a project manager, has to prepare the budget for a new project. He estimates the overall project cost by estimating the costs of the major tasks. He then gives these estimates to Raphael, an engineer who works under Sean, to split up the costs for each of the activities involved in accomplishing the major tasks. In this scenario, Sean 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 4

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

Accepted Answer

A) True 
 B)False

Question 5

Contrast between activity budgeting and program budgeting.

Accepted Answer

Traditional organizational budgets are t

Question 6

There are three basic causes for change in projects and their budgets and/or schedules. Which of the following is not one of these?

Accepted Answer

A)  Errors the cost estimator made about how to achieve the tasks identified in the project plan. 
B)  Inflation causes significant changes to the cost of labor and/or materials. 
C)  The project team or client learns more about the nature of the scope of the project or the setting in which it is to be used. 
D)  A new law is passed, a trade association sets a new standard, a governmental regulatory agency adopts a new policy. 
A)  Errors the cost estimator made about how to achieve the tasks identified in the project plan. 
B)  Inflation causes significant changes to the cost of labor and/or materials. 
C)  The project team or client learns more about the nature of the scope of the project or the setting in which it is to be used. 
D)  A new law is passed, a trade association sets a new standard, a governmental regulatory agency adopts a new policy.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

With top-down budgeting, overlooking a small but important task can often cause a serious budgetary problem.

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:

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

Contrast between activity budgeting and program budgeting.

There are three basic causes for change in projects and their budgets and/or schedules. Which of the following is not one of these?

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

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

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 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

With top-down budgeting, overlooking a small but important task can often cause a serious budgetary problem.

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:

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

Contrast between activity budgeting and program budgeting.

There are three basic causes for change in projects and their budgets and/or schedules. Which of the following is not one of these?

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

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

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 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