Question 1

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

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

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

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is NOT true regarding bottom-up budgeting?

Accepted Answer

A)  The method tends to be inaccurate in the detailed tasks. 
B)  The WBS is used to identify the elemental tasks. 
C)  It is rarely used. 
D)  It is a good managerial training technique. 
E)  All of the above are true concerning top-down budgeting. 
A)  The method tends to be inaccurate in the detailed tasks. 
B)  The WBS is used to identify the elemental tasks. 
C)  It is rarely used. 
D)  It is a good managerial training technique. 
E)  All of the above are true concerning top-down budgeting.

Question 5

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 6

FMEA stands for

Accepted Answer

A)  Financial Methods and Efficiency Analysis 
B)  Failure Modes and Effect Analysis 
C)  Full Monetary Expenditure Accrual 
D)  Financial Measurement of Expenses Accrued 
E)  Factor Mode and Efficiency Analysis 
A)  Financial Methods and Efficiency Analysis 
B)  Failure Modes and Effect Analysis 
C)  Full Monetary Expenditure Accrual 
D)  Financial Measurement of Expenses Accrued 
E)  Factor Mode and Efficiency Analysis

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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 10

The result of game theory analysis is a Risk Priority Number.

Accepted Answer

A) True 
 B)False

Question 11

Most organizations use top-down budgeting.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is NOT true about a firm and its project accounting?

Accepted Answer

A)  each firm has its own rules with regard to the allocation of overhead 
B)  most firms must comply with the Sarbane-Oxley Act 
C)  the project manager must rely on the accounting department to make special allowances for his/her project 
D)  most firms have their own accounting idiosyncrasies 
E)  unexpected charges may suddenly appear when the PM least expects it 
A)  each firm has its own rules with regard to the allocation of overhead 
B)  most firms must comply with the Sarbane-Oxley Act 
C)  the project manager must rely on the accounting department to make special allowances for his/her project 
D)  most firms have their own accounting idiosyncrasies 
E)  unexpected charges may suddenly appear when the PM least expects it

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

A requirement of top-down budgeting is:

Accepted Answer

A)  involvement of the project team 
B)  estimating the detailed level of the project's tasks 
C)  applying the learning curve to labor time estimates 
D)  all of the above 
E)  none of the above 
A)  involvement of the project team 
B)  estimating the detailed level of the project's tasks 
C)  applying the learning curve to labor time estimates 
D)  all of the above 
E)  none of the above

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 17

A budget is a plan for allocating resources.

Accepted Answer

A) True 
 B)False

Question 18

A budget is a plan for allocating resources to project activities.

Accepted Answer

A) True 
 B)False

Question 19

Budgeting a project is often more difficult than budgeting routine activities.

Accepted Answer

A) True 
 B)False

Question 20

Why is it necessary to consider the learning curve of resources on a project?

Accepted Answer

A)  to estimate labor costs properly 
B)  to improve project team morale 
C)  because it always takes less time to do a task after someone has done it a few times 
D)  collective bargaining contracts require it 
E)  All of the above 
A)  to estimate labor costs properly 
B)  to improve project team morale 
C)  because it always takes less time to do a task after someone has done it a few times 
D)  collective bargaining contracts require it 
E)  All of the above

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

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

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

Which of the following is NOT true regarding bottom-up budgeting?

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

FMEA stands for

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

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

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

The result of game theory analysis is a Risk Priority Number.

Most organizations use top-down budgeting.

Which of the following statements is NOT true about a firm and its project accounting?

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

A requirement of top-down budgeting is:

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

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

A budget is a plan for allocating resources.

A budget is a plan for allocating resources to project activities.

Budgeting a project is often more difficult than budgeting routine activities.

Why is it necessary to consider the learning curve of resources on a project?

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

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

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

Which of the following is NOT true regarding bottom-up budgeting?

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

FMEA stands for

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

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

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

The result of game theory analysis is a Risk Priority Number.

Most organizations use top-down budgeting.

Which of the following statements is NOT true about a firm and its project accounting?

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

A requirement of top-down budgeting is:

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

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

A budget is a plan for allocating resources.

A budget is a plan for allocating resources to project activities.

Budgeting a project is often more difficult than budgeting routine activities.

Why is it necessary to consider the learning curve of resources on a project?

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