Question 1

All of the following items describe an aspect of life cycle costing EXCEPT:​

Accepted Answer

A)  Life cycle cost includes the cost of both creating the project and of using the result of the project during its useful life. 
B)  Many project selection decisions are made based upon life cycle cost. 
C)  Life cycle cost only includes the project cost from initiating through closing 
D)  Project managers may need to consider disposal costs of the product after its useful life is complete to calculate total life cycle cost. 
A)  Life cycle cost includes the cost of both creating the project and of using the result of the project during its useful life. 
B)  Many project selection decisions are made based upon life cycle cost. 
C)  Life cycle cost only includes the project cost from initiating through closing 
D)  Project managers may need to consider disposal costs of the product after its useful life is complete to calculate total life cycle cost.

Question 2

Early in a project when very little detail is known about a project,it is impractical to render even a rough estimate of the final project cost.

Accepted Answer

A) True 
 B)False

Question 3

Cost estimating is linked very closely with scope,schedule and resource planning.

Accepted Answer

A) True 
 B)False

Question 4

A milestone is a typical measuring point used when establishing cost control.Which of the following does NOT accurately describes the use of cost control milestones?​

Accepted Answer

A)  Project managers can use their cash flow projections to determine the funding needed to reach each milestone. 
B)  Project managers and sponsors often decide the number of milestones jointly. 
C)  Milestones are often identified in the project charter. 
D)  Milestones are developed during risk planning. 
A)  Project managers can use their cash flow projections to determine the funding needed to reach each milestone. 
B)  Project managers and sponsors often decide the number of milestones jointly. 
C)  Milestones are often identified in the project charter. 
D)  Milestones are developed during risk planning.

Question 5

Which of the following terms best describes extra money in the project budget to be used if necessary - usually if a risk event occurs?

Accepted Answer

A)  reserve 
B)  insurance 
C)  padding 
D)  discretionary fund 
A)  reserve 
B)  insurance 
C)  padding 
D)  discretionary fund

Question 6

A project manager needs to ensure that the cumulative amount of cash coming into the project either from internal budgeting or from customer payments meets or exceeds the demands for paying cash out.

Accepted Answer

A) True 
 B)False

Question 7

Typically,expedited costs are preferred over regular costs.

Accepted Answer

A) True 
 B)False

Question 8

Regardless of what method is used to estimate project costs,supporting detail should be provided.

Accepted Answer

A) True 
 B)False

Question 9

Costs that repeat as project work continues such as the cost of writing code or laying bricks are appropriately classified as:​

Accepted Answer

A)  fixed costs. 
B)  indirect costs. 
C)  nonrecurring costs. 
D)  recurring costs 
A)  fixed costs. 
B)  indirect costs. 
C)  nonrecurring costs. 
D)  recurring costs

Question 10

Which estimating technique uses a statistical relationship to calculate cost or duration based on historical data and other project parameters?​

Accepted Answer

A)  empirical estimating 
B)  parametric estimating 
C)  grass roots estimating 
D)  analogous estimating 
A)  empirical estimating 
B)  parametric estimating 
C)  grass roots estimating 
D)  analogous estimating

Question 11

Estimate Cost is the process of developing an approximation of the monetary resources needed to complete project activities.

Accepted Answer

A) True 
 B)False

Question 12

Describe analogous,parametric and bottom-up estimating,and briefly discuss the advantages and disadvantages of each method.

Accepted Answer

Key concepts to be covered in the respon

Question 13

Recurring costs tend to occur during project planning and closing while nonrecurring costs tend to occur during project execution.

Accepted Answer

A) True 
 B)False

Question 14

Complex projects such as research and development for new products often employ rolling wave planning to estimate costs.Which of the following best describes "rolling wave" planning?

Accepted Answer

A)  Project managers render a definitive estimate for the first stage and an order of magnitude estimate for the remainder of the project. 
B)  Project managers render an order of magnitude estimate for the first stage and a definitive estimate for the remainder of the project. 
C)  Project managers render definitive estimates for all stages of the project during initiation. 
D)  Project managers render an order of magnitude estimate for all stages of the project. 
A)  Project managers render a definitive estimate for the first stage and an order of magnitude estimate for the remainder of the project. 
B)  Project managers render an order of magnitude estimate for the first stage and a definitive estimate for the remainder of the project. 
C)  Project managers render definitive estimates for all stages of the project during initiation. 
D)  Project managers render an order of magnitude estimate for all stages of the project.

Question 15

The cost management plan provides guidelines to the project manager and other stakeholders and serves all of the following purposes EXCEPT:​

Accepted Answer

A)  It shows how to develop and share relevant, accurate and timely information on cost that the project manager, sponsor and other stakeholders can use to make intelligent and ethical decisions. 
B)  It documents how the project statement of work and business case should be created. 
C)  It helps all project stakeholders focus appropriately on schedule and cost performance. 
D)  It provides feedback, thereby showing how the project's success is linked to the business objectives for which it was undertaken. 
A)  It shows how to develop and share relevant, accurate and timely information on cost that the project manager, sponsor and other stakeholders can use to make intelligent and ethical decisions. 
B)  It documents how the project statement of work and business case should be created. 
C)  It helps all project stakeholders focus appropriately on schedule and cost performance. 
D)  It provides feedback, thereby showing how the project's success is linked to the business objectives for which it was undertaken.

Question 16

Which estimating technique decomposes the work into lower,more detailed pieces,preferably the lowest level of WBS work elements,for which estimates are prepared and then aggregates them into a total quantity for the project?​

Accepted Answer

A)  piece meal pricing 
B)  decomposition estimating 
C)  bottom-up estimating 
D)  grass roots estimating 
A)  piece meal pricing 
B)  decomposition estimating 
C)  bottom-up estimating 
D)  grass roots estimating

Question 17

On agile projects,project managers may use rolling wave planning to estimate costs.

Accepted Answer

A) True 
 B)False

Question 18

Direct costs typically include the cost of direct labor as well as other direct costs for items such as material,travel,subcontracts and computer time.

Accepted Answer

A) True 
 B)False

Question 19

Value engineering is aimed at increasing the value or productivity of a work element while minimizing the cost.

Accepted Answer

A) True 
 B)False

Question 20

Discuss how the accuracy of cost estimates becomes more precise during a project.

Accepted Answer

Key concepts to be covered in the respon

All of the following items describe an aspect of life cycle costing EXCEPT:

Early in a project when very little detail is known about a project,it is impractical to render even a rough estimate of the final project cost.

Cost estimating is linked very closely with scope,schedule and resource planning.

A milestone is a typical measuring point used when establishing cost control.Which of the following does NOT accurately describes the use of cost control milestones?

Which of the following terms best describes extra money in the project budget to be used if necessary - usually if a risk event occurs?

A project manager needs to ensure that the cumulative amount of cash coming into the project either from internal budgeting or from customer payments meets or exceeds the demands for paying cash out.

Typically,expedited costs are preferred over regular costs.

Regardless of what method is used to estimate project costs,supporting detail should be provided.

Costs that repeat as project work continues such as the cost of writing code or laying bricks are appropriately classified as:

Which estimating technique uses a statistical relationship to calculate cost or duration based on historical data and other project parameters?

Estimate Cost is the process of developing an approximation of the monetary resources needed to complete project activities.

Describe analogous,parametric and bottom-up estimating,and briefly discuss the advantages and disadvantages of each method.

Recurring costs tend to occur during project planning and closing while nonrecurring costs tend to occur during project execution.

Complex projects such as research and development for new products often employ rolling wave planning to estimate costs.Which of the following best describes "rolling wave" planning?

The cost management plan provides guidelines to the project manager and other stakeholders and serves all of the following purposes EXCEPT:

Which estimating technique decomposes the work into lower,more detailed pieces,preferably the lowest level of WBS work elements,for which estimates are prepared and then aggregates them into a total quantity for the project?

On agile projects,project managers may use rolling wave planning to estimate costs.

Direct costs typically include the cost of direct labor as well as other direct costs for items such as material,travel,subcontracts and computer time.

Value engineering is aimed at increasing the value or productivity of a work element while minimizing the cost.

Discuss how the accuracy of cost estimates becomes more precise during a project.

Introduction to Project Management

Project Selection and Prioritization

Chartering Projects

Organizational Capability: Structure, Culture and Roles

Leading and Managing Project Teams

Stakeholder Analysis and Communication Planning

Scope Planning

Scheduling Projects

Resourcing Projects

Project Risk Planning

Project Quality Planning and Project Kick-Off

Project Supply Chain Management

Determining Project Progress and Results

Finishing the Project and Realizing the Benefits

Filters

Exam 10: Budgeting Projects

All of the following items describe an aspect of life cycle costing EXCEPT:​

Early in a project when very little detail is known about a project,it is impractical to render even a rough estimate of the final project cost.

Cost estimating is linked very closely with scope,schedule and resource planning.

A milestone is a typical measuring point used when establishing cost control.Which of the following does NOT accurately describes the use of cost control milestones?​

Which of the following terms best describes extra money in the project budget to be used if necessary - usually if a risk event occurs?

A project manager needs to ensure that the cumulative amount of cash coming into the project either from internal budgeting or from customer payments meets or exceeds the demands for paying cash out.

Typically,expedited costs are preferred over regular costs.

Regardless of what method is used to estimate project costs,supporting detail should be provided.

Costs that repeat as project work continues such as the cost of writing code or laying bricks are appropriately classified as:​

Which estimating technique uses a statistical relationship to calculate cost or duration based on historical data and other project parameters?​

Estimate Cost is the process of developing an approximation of the monetary resources needed to complete project activities.

Describe analogous,parametric and bottom-up estimating,and briefly discuss the advantages and disadvantages of each method.

Recurring costs tend to occur during project planning and closing while nonrecurring costs tend to occur during project execution.

Complex projects such as research and development for new products often employ rolling wave planning to estimate costs.Which of the following best describes "rolling wave" planning?

The cost management plan provides guidelines to the project manager and other stakeholders and serves all of the following purposes EXCEPT:​

Which estimating technique decomposes the work into lower,more detailed pieces,preferably the lowest level of WBS work elements,for which estimates are prepared and then aggregates them into a total quantity for the project?​

On agile projects,project managers may use rolling wave planning to estimate costs.

Direct costs typically include the cost of direct labor as well as other direct costs for items such as material,travel,subcontracts and computer time.

Value engineering is aimed at increasing the value or productivity of a work element while minimizing the cost.

Discuss how the accuracy of cost estimates becomes more precise during a project.

Introduction to Project Management

Project Selection and Prioritization

Chartering Projects

Organizational Capability: Structure, Culture and Roles

Leading and Managing Project Teams

Stakeholder Analysis and Communication Planning

Scope Planning

Scheduling Projects

Resourcing Projects

Project Risk Planning

Project Quality Planning and Project Kick-Off

Project Supply Chain Management

Determining Project Progress and Results

Finishing the Project and Realizing the Benefits

Filters

All of the following items describe an aspect of life cycle costing EXCEPT:

A milestone is a typical measuring point used when establishing cost control.Which of the following does NOT accurately describes the use of cost control milestones?

Costs that repeat as project work continues such as the cost of writing code or laying bricks are appropriately classified as:

Which estimating technique uses a statistical relationship to calculate cost or duration based on historical data and other project parameters?

The cost management plan provides guidelines to the project manager and other stakeholders and serves all of the following purposes EXCEPT:

Which estimating technique decomposes the work into lower,more detailed pieces,preferably the lowest level of WBS work elements,for which estimates are prepared and then aggregates them into a total quantity for the project?