Question 1

What type of estimate is used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs?

Accepted Answer

A)  budgetary 
B)  definitive 
C)  rough order of magnitude 
D)  final 
A)  budgetary 
B)  definitive 
C)  rough order of magnitude 
D)  final

Question 2

Which method is used for determining the estimated annual costs and benefits for a project?

Accepted Answer

A)  Critical path analysis 
B)  Cash flow analysis 
C)  Present value analysis 
D)  Requirements analysis 
A)  Critical path analysis 
B)  Cash flow analysis 
C)  Present value analysis 
D)  Requirements analysis

Question 3

When deciding what projects to invest in or continue, one should include sunk costs.

Accepted Answer

A) True 
 B)False

Question 4

Contingency reserves are also known as unknown unknowns.

Accepted Answer

A) True 
 B)False

Question 5

How are profits best defined?

Accepted Answer

A)  expenses plus net income 
B)  costs plus revenues 
C)  revenues plus expenses 
D)  revenues minus expenditures 
A)  expenses plus net income 
B)  costs plus revenues 
C)  revenues plus expenses 
D)  revenues minus expenditures

Question 6

_____ theory states that when many items are produced repetitively, the unit cost of those items decreases in a regular pattern as more units are produced.

Accepted Answer

The answer of  _____ theory states that when many items...

Question 7

A budgetary estimate is the most accurate of the three types of estimates.

Accepted Answer

A) True 
 B)False

Question 8

The main outputs of the _____ process are a cost performance baseline, project funding requirements, and project document updates.

Accepted Answer

The answer of  The main outputs of the _____ process...

Question 9

In addition to providing input for budgetary estimates, the process of _____ provides a cost baseline.

Accepted Answer

The answer of  In addition to providing input for budgetary...

Question 10

Estimates should become more accurate as time progresses.

Accepted Answer

A) True 
 B)False

Question 11

Work performance information and cost forecasts are main outputs of which process?

Accepted Answer

A)  cost budgeting 
B)  cost estimating 
C)  cost control 
D)  cost pricing 
A)  cost budgeting 
B)  cost estimating 
C)  cost control 
D)  cost pricing

Question 12

Which statement is true of bottom-up estimates?

Accepted Answer

A)  They are based on the actual cost of a previous, similar project. 
B)  They are also known as parametric estimating. 
C)  They are most accurate when they involve large, extensive work items. 
D)  They are time-intensive and expensive to develop. 
A)  They are based on the actual cost of a previous, similar project. 
B)  They are also known as parametric estimating. 
C)  They are most accurate when they involve large, extensive work items. 
D)  They are time-intensive and expensive to develop.

Question 13

Which statement is true regarding indirect costs?

Accepted Answer

A)  directly related to performing the project. 
B)  those that cannot be allocated to projects. 
C)  those that can be easily controlled by managers. 
D)  not directly related to the products or services of a project. 
A)  directly related to performing the project. 
B)  those that cannot be allocated to projects. 
C)  those that can be easily controlled by managers. 
D)  not directly related to the products or services of a project.

Question 14

If the cost performance index (CPI) is less than 100 percent, the project is under budget.

Accepted Answer

A) True 
 B)False

Question 15

Analogous estimates are the most accurate technique to estimate costs.

Accepted Answer

A) True 
 B)False

Question 16

Analogous estimates are called activity-based costing.

Accepted Answer

A) True 
 B)False

Question 17

Project managers must conduct cash flow analysis to determine net present value.

Accepted Answer

A) True 
 B)False

Question 18

Which process involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance?

Accepted Answer

A)  determining the budget 
B)  finalizing policies for project costs 
C)  controlling costs 
D)  estimating costs 
A)  determining the budget 
B)  finalizing policies for project costs 
C)  controlling costs 
D)  estimating costs

Question 19

Describe three tools used in developing a good cost estimate.

Accepted Answer

Several tools and techniques can be used

Question 20

Project costs, like project schedules, grow out of the basic documents that initiate a project, like the _____.

Accepted Answer

The answer of  Project costs, like project schedules, grow out...

What type of estimate is used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs?

Which method is used for determining the estimated annual costs and benefits for a project?

When deciding what projects to invest in or continue, one should include sunk costs.

Contingency reserves are also known as unknown unknowns.

How are profits best defined?

_____ theory states that when many items are produced repetitively, the unit cost of those items decreases in a regular pattern as more units are produced.

A budgetary estimate is the most accurate of the three types of estimates.

The main outputs of the _____ process are a cost performance baseline, project funding requirements, and project document updates.

In addition to providing input for budgetary estimates, the process of _____ provides a cost baseline.

Estimates should become more accurate as time progresses.

Work performance information and cost forecasts are main outputs of which process?

Which statement is true of bottom-up estimates?

Which statement is true regarding indirect costs?

If the cost performance index (CPI) is less than 100 percent, the project is under budget.

Analogous estimates are the most accurate technique to estimate costs.

Analogous estimates are called activity-based costing.

Project managers must conduct cash flow analysis to determine net present value.

Which process involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance?

Describe three tools used in developing a good cost estimate.

Project costs, like project schedules, grow out of the basic documents that initiate a project, like the _____.

Introduction to Project Management

The Project Management Information Technology Context

The Project Management Process Groups

Project Integration Management

Project Scope Management

Project Schedule Management

Project Quality Management

Project Resource Management

Project Communications Management

Project Risk Management

Project Procurement Management

Project Stakeholder Management

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Exam 7: Project Cost Management

What type of estimate is used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs?

Which method is used for determining the estimated annual costs and benefits for a project?

When deciding what projects to invest in or continue, one should include sunk costs.

Contingency reserves are also known as unknown unknowns.

How are profits best defined?

_____ theory states that when many items are produced repetitively, the unit cost of those items decreases in a regular pattern as more units are produced.

A budgetary estimate is the most accurate of the three types of estimates.

The main outputs of the _____ process are a cost performance baseline, project funding requirements, and project document updates.

In addition to providing input for budgetary estimates, the process of _____ provides a cost baseline.

Estimates should become more accurate as time progresses.

Work performance information and cost forecasts are main outputs of which process?

Which statement is true of bottom-up estimates?

Which statement is true regarding indirect costs?

If the cost performance index (CPI) is less than 100 percent, the project is under budget.

Analogous estimates are the most accurate technique to estimate costs.

Analogous estimates are called activity-based costing.

Project managers must conduct cash flow analysis to determine net present value.

Which process involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance?

Describe three tools used in developing a good cost estimate.

Project costs, like project schedules, grow out of the basic documents that initiate a project, like the _____.

Introduction to Project Management

The Project Management Information Technology Context

The Project Management Process Groups

Project Integration Management

Project Scope Management

Project Schedule Management

Project Quality Management

Project Resource Management

Project Communications Management

Project Risk Management

Project Procurement Management

Project Stakeholder Management

Filters