Question 1

Unknown unknowns are not part of the baseline budget and are referred to as what?

Accepted Answer

A) management reserves 
B) contingency reserves 
C) PMBOK reserves 
D) Buffered reserves 
A) management reserves 
B) contingency reserves 
C) PMBOK reserves 
D) Buffered reserves

Question 2

Unless the project manager is familiar with the firm's __________ it will be very difficult to exercise budget control.

Accepted Answer

A) accounting system 
B) budget plans 
C) marketing procedures 
D) cost accounting 
A) accounting system 
B) budget plans 
C) marketing procedures 
D) cost accounting

Question 3

Each time the output doubles,the worker hours per unit decrease to a fixed percentage of their previous value.That percentage is called the __________ rate.

Accepted Answer

A) inflation 
B) hurdle 
C) interest 
D) learning 
A) inflation 
B) hurdle 
C) interest 
D) learning

Question 4

A work element whose cost is fully developed would __________.

Accepted Answer

A) exclude the cost of labor and resources 
B) include only the profit and direct costs 
C) exclude the cost of special machinery and overheads 
D) include direct costs plus overhead and G&A charges 
A) exclude the cost of labor and resources 
B) include only the profit and direct costs 
C) exclude the cost of special machinery and overheads 
D) include direct costs plus overhead and G&A charges

Question 5

Identify the statement that is not correct regarding a project budget.

Accepted Answer

A) The budget is included in a project plan. 
B) The budget is not an expression of organizational policy. 
C) The budget serves as a control mechanism for the project. 
D) The budget serves as a standard for comparison of planned and actual usage of resources. 
A) The budget is included in a project plan. 
B) The budget is not an expression of organizational policy. 
C) The budget serves as a control mechanism for the project. 
D) The budget serves as a standard for comparison of planned and actual usage of resources.

Question 6

The project's budget should __________.

Accepted Answer

A) associate resource use with the achievement of organizational goals 
B) allow funds to be spent without linkage to achievement 
C) not reflect the timing of expenses associated with the use of resources 
D) never be changed during project execution 
A) associate resource use with the achievement of organizational goals 
B) allow funds to be spent without linkage to achievement 
C) not reflect the timing of expenses associated with the use of resources 
D) never be changed during project execution

Question 7

The __________ form of budgeting has the advantage of using individuals closer to the work to provide estimates of resource requirements.

Accepted Answer

A) top-down budgeting 
B) work element costing 
C) bottom-up budgeting 
D) iterative budgeting 
A) top-down budgeting 
B) work element costing 
C) bottom-up budgeting 
D) iterative budgeting

Question 8

____ are where the defined responses to the risks are detailed,but their amounts are not yet precisely known.

Accepted Answer

A) Known unknowns 
B) Unknown knowns 
C) Known knowns 
D) Unknown unknowns 
A) Known unknowns 
B) Unknown knowns 
C) Known knowns 
D) Unknown unknowns

Question 9

The pattern of constraints in a budget embodies organizational __________.

Accepted Answer

A) policy 
B) effort 
C) human resource management 
D) risk management 
A) policy 
B) effort 
C) human resource management 
D) risk management

Question 10

Identify some of the common problems faced by the project budgeter.

Accepted Answer

The project budgeter cannot depend on tr

Question 11

Explain why senior managers view the bottom-up budgeting process as being risky.

Accepted Answer

Senior managers may not be particularly

Question 12

__________ is a plan for allocating resources.The allocation of resources indicates the degree to which different activities of an organization are supported fully.

Accepted Answer

A) A budget 
B) Direct cost 
C) A management plan 
D) An allocation effort 
A) A budget 
B) Direct cost 
C) A management plan 
D) An allocation effort

Question 13

A budget strategy that is based on collecting the judgments and experiences of top and middle managers is referred to as the __________ approach or method.

Accepted Answer

A) parametric estimating 
B) statistical equivalence 
C) bottom-up estimating 
D) top-down estimating 
A) parametric estimating 
B) statistical equivalence 
C) bottom-up estimating 
D) top-down estimating

Question 14

According to the authors,the task of risk identification will be horrendous if the risk management system has no memory.Discuss the important elements of a risk management system that would compensate for a lack of memory by the organization.

Accepted Answer

A good risk management system should be

Question 15

The determination of costs for a new process should utilize a __________,or operations sequence sheet,which describes the operation in which the new process would be used.

Accepted Answer

A) route sheet 
B) budget sheet 
C) cost estimation fld)owchart 
A) route sheet 
B) budget sheet 
C) cost estimation fld)owchart

Question 16

__________ costs vary with output.

Accepted Answer

A) General and administrative 
B) Overhead 
C) Direct 
D) Indirect 
A) General and administrative 
B) Overhead 
C) Direct 
D) Indirect

Question 17

If projects include repetitive tasks with significant human input,the __________ rate should be factored into the cost estimate.

Accepted Answer

A) inflation 
B) hurdle 
C) interest 
D) learning 
A) inflation 
B) hurdle 
C) interest 
D) learning

Question 18

In order to develop a budget,the project manager must forecast __________.

Accepted Answer

A) the resources required 
B) when resources will be needed 
C) the cost of resources 
D) All of the above 
A) the resources required 
B) when resources will be needed 
C) the cost of resources 
D) All of the above

Question 19

If a project budget is over funded,it will often __________.

Accepted Answer

A) produce waste 
B) encourage slack management 
C) improve morale 
D) produce waste and encourage slack management 
A) produce waste 
B) encourage slack management 
C) improve morale 
D) produce waste and encourage slack management

Question 20

Several issues face firms preparing bid proposals,particularly firms in the aerospace,construction,defense,and consulting industries.Which of the following is not one of those issues?

Accepted Answer

A) How should the proposal-preparation process be organized and staffed? 
B) How much should be spent on preparing proposals for bids? 
C) Is it ethical? 
D) How long will the project take? 
A) How should the proposal-preparation process be organized and staffed? 
B) How much should be spent on preparing proposals for bids? 
C) Is it ethical? 
D) How long will the project take?

Unknown unknowns are not part of the baseline budget and are referred to as what?

Unless the project manager is familiar with the firm's __________ it will be very difficult to exercise budget control.

Each time the output doubles,the worker hours per unit decrease to a fixed percentage of their previous value.That percentage is called the __________ rate.

A work element whose cost is fully developed would __________.

Identify the statement that is not correct regarding a project budget.

The project's budget should __________.

The __________ form of budgeting has the advantage of using individuals closer to the work to provide estimates of resource requirements.

____ are where the defined responses to the risks are detailed,but their amounts are not yet precisely known.

The pattern of constraints in a budget embodies organizational __________.

Identify some of the common problems faced by the project budgeter.

Explain why senior managers view the bottom-up budgeting process as being risky.

__________ is a plan for allocating resources.The allocation of resources indicates the degree to which different activities of an organization are supported fully.

A budget strategy that is based on collecting the judgments and experiences of top and middle managers is referred to as the __________ approach or method.

According to the authors,the task of risk identification will be horrendous if the risk management system has no memory.Discuss the important elements of a risk management system that would compensate for a lack of memory by the organization.

The determination of costs for a new process should utilize a __________,or operations sequence sheet,which describes the operation in which the new process would be used.

__________ costs vary with output.

If projects include repetitive tasks with significant human input,the __________ rate should be factored into the cost estimate.

In order to develop a budget,the project manager must forecast __________.

If a project budget is over funded,it will often __________.

Several issues face firms preparing bid proposals,particularly firms in the aerospace,construction,defense,and consulting industries.Which of the following is not one of those issues?

Projects in Contemporary Organizations

Strategic Management and Project Selection

The Project Manager

Managing Conflict and the Art of Negotiation

The Project in the Organizational Structure

Activity Planning: Traditional and Agile

Scheduling

Resource Allocation

Monitoring and Information Systems

Project Control

Project Auditing

Project Closure and Benefits Realization

Filters

Exam 7: Budgeting and Risk Management

Unknown unknowns are not part of the baseline budget and are referred to as what?

Unless the project manager is familiar with the firm's __________ it will be very difficult to exercise budget control.

Each time the output doubles,the worker hours per unit decrease to a fixed percentage of their previous value.That percentage is called the __________ rate.

A work element whose cost is fully developed would __________.

Identify the statement that is not correct regarding a project budget.

The project's budget should __________.

The __________ form of budgeting has the advantage of using individuals closer to the work to provide estimates of resource requirements.

____ are where the defined responses to the risks are detailed,but their amounts are not yet precisely known.

The pattern of constraints in a budget embodies organizational __________.

Identify some of the common problems faced by the project budgeter.

Explain why senior managers view the bottom-up budgeting process as being risky.

__________ is a plan for allocating resources.The allocation of resources indicates the degree to which different activities of an organization are supported fully.

A budget strategy that is based on collecting the judgments and experiences of top and middle managers is referred to as the __________ approach or method.

According to the authors,the task of risk identification will be horrendous if the risk management system has no memory.Discuss the important elements of a risk management system that would compensate for a lack of memory by the organization.

The determination of costs for a new process should utilize a __________,or operations sequence sheet,which describes the operation in which the new process would be used.

__________ costs vary with output.

If projects include repetitive tasks with significant human input,the __________ rate should be factored into the cost estimate.

In order to develop a budget,the project manager must forecast __________.

If a project budget is over funded,it will often __________.

Several issues face firms preparing bid proposals,particularly firms in the aerospace,construction,defense,and consulting industries.Which of the following is not one of those issues?

Projects in Contemporary Organizations

Strategic Management and Project Selection

The Project Manager

Managing Conflict and the Art of Negotiation

The Project in the Organizational Structure

Activity Planning: Traditional and Agile

Scheduling

Resource Allocation

Monitoring and Information Systems

Project Control

Project Auditing

Project Closure and Benefits Realization

Filters