Question 1

Workers paid $15.00 per hour with an overhead charge of 1.45 and a personal time allowance of 1.15,have what total direct labor cost for an 8-hour work day?

Accepted Answer

A) $151.30 
B) $174.00 
C) $200.10 
D) $236.80 
A) $151.30 
B) $174.00 
C) $200.10 
D) $236.80 C

Question 2

Acme is exploring two locations for a new plant to supply product for a government contract.They dispatch a team of industrial engineers and cost estimators to the Minneapolis-St.Paul area of Minnesota and to Kennewick-Pasco-Richland area in Washington.After conducting some tests,the teams return with some unusual findings,the Minneapolis-St.Paul workers seem to obey classic learning effect rules;their learning rate is 80% and is based on a doubling of output.They are much slower than their counterparts at the other site;it is estimated that the first batch units they assemble will take them 700 hours.The workforce in the Kennewick-Pasco-Richland area is much faster;their first batch will take only 470 hours.Strangely,these workers also exhibit learning effects,but their learning is based on a tripling of output rather than the traditional doubling and their rate is 78%.How many batches must be made before Minneapolis-St.Paul's time falls below Kennewick-Pasco-Richland's?

Accepted Answer

The crossover point is just above the 64th unit;at the 64th unit the Kennewick-Pasco-Richland workers are faster by one hundredth of an hour and at the 65th unit the Minneapolis-St.Paul workers are faster by a quarter of an hour.
 $$\begin{array} { l } 
Y _ { X } = a X \frac { L O G ( L C ) } { L O G ( 2 ) } \text { Minneapolis-St. Paul } \\
Y _ { X } = a X \frac { L O G ( L C ) } { L O G ( 3 ) } \text { Kennewick-Pasco-Richland } \\
Y _ { X } = a X \frac { L O G ( L C ) } { L O G ( 2 ) } = a X \frac { L O G ( L C ) } { L O G ( 3 ) } \\
700 \mathrm { X } \frac { L O G ( .80 ) } { L O G ( 2 ) } = 470 \mathrm { X } \frac { L O G ( .78 ) } { L O G ( 3 ) } \\
700 X ^ { - } \cdot .32193 = 470 X ^ { - } \cdot .22616 \\
\frac { 700 } { 400 } = \frac { X ^ { - } .22616 } { X ^ { - .32193 } } \\
1.489362 = X ^ { - .095769 } \\
1 n ( 1.489362 ) = 1 n ( X - .095769 ) \\
0.398349 = 0.095769 \ln ( X ) \\
\frac { 0.398349 } { 0.095769 } = \ln ( X ) \\
\exp \left[ \frac { 0.398349 } { 0.095769 } \right) = X \\
X = 64.03765
\end{array}$$

Question 3

Which worker's wages would constitute a direct cost for a construction project?

Accepted Answer

A) The project's cost accountant 
B) The brick mason 
C) The architect's assistant 
D) The foreman 
A) The project's cost accountant 
B) The brick mason 
C) The architect's assistant 
D) The foreman B

Question 4

What is the cumulative project budget for September in this time-phased budget? $$\begin{array} { | l | l | l | l | l | l |} 
\hline \text { Activity } & \text { July } & \text { August } & \text { Septernber } & \text { October } & \text { Novernber } \
\hline \text { RFP } & 34,721 & & & & \
\hline \text { Aralysis } & 11,049 & 33,655 & 34,388 & & \
\hline \text { Pesiggn } & 33,718 & 34,474 & 26,759 & 36,328 & \
\hline \text { Codirg } & & 7,713 & 34,905 & 40,244 & \
\hline \text { Testing } & & & & 40,916 & 896 \
\hline \text { Trairing } & & & & 20,958 & 9,327 \
\hline \text { Roll-Out } & & & & & 8,186 \
\hline
\end{array}$$

Accepted Answer

A) $96,052 
B) $155,330 
C) $152,927 
D) $251,382 
A) $96,052 
B) $155,330 
C) $152,927 
D) $251,382

Question 5

An early warning signal for the potential of an overdrawn budget is created when:

Accepted Answer

A) Activity-based costing cannot identify drivers. 
B) A bottom-up budget never makes it up the chain of command. 
C) Contingency funds are applied for. 
D) A top-down process moves too quickly down to the functional managers. 
A) Activity-based costing cannot identify drivers. 
B) A bottom-up budget never makes it up the chain of command. 
C) Contingency funds are applied for. 
D) A top-down process moves too quickly down to the functional managers.

Question 6

An activity with a learning rate of 0.85 takes 25 hours for the first iteration.How long will it take to complete this task for the 15th time?

Accepted Answer

A) 12.55 hours 
B) 12.85 hours 
C) 13.15 hours 
D) 13.25 hours 
A) 12.55 hours 
B) 12.85 hours 
C) 13.15 hours 
D) 13.25 hours

Question 7

What is activity-based costing and how is it performed?

Accepted Answer

Activity-based costing (ABC)is a budgeti

Question 8

When asked to provide an estimate of an irrigation system,Pete looked from one end of the field to the other,licked a finger and held it in the air,squinted into the sun and said $25,000,give or take 30%.The technique employed for cost estimation is:

Accepted Answer

A) Parametric. 
B) Comparative. 
C) Definitive. 
D) Ballpark. 
A) Parametric. 
B) Comparative. 
C) Definitive. 
D) Ballpark.

Question 9

When their baby was ready to head off to college,the beleaguered parents pulled out the college folder from their file cabinet and added up the cost of putting their first child through college from 1995-2000.The mother whimpered as she factored in the rising cost of tuition,fees,books,and inflation by multiplying the total by 2.5.The father felt a searing pain go through his chest as he saw the total,knowing full well that their cost estimation approach,called:

Accepted Answer

A) An order of magnitude estimate,was highly accurate. 
B) Parametric estimation,was highly accurate. 
C) Feasibility estimation,was highly accurate. 
D) Definitive estimation,was highly accurate. 
A) An order of magnitude estimate,was highly accurate. 
B) Parametric estimation,was highly accurate. 
C) Feasibility estimation,was highly accurate. 
D) Definitive estimation,was highly accurate.

Question 10

Function point analysis is a system for estimating the size of software projects based on the number of lines of code a typical programmer can write in a day.

Accepted Answer

A) True 
 B)False

Question 11

Three workers complete a full 8-hour day finishing concrete for a terrace.All three workers are paid $12 an hour and the job bills to the customer for $450.What are the total direct labor costs?

Accepted Answer

A) $450 
B) $12 
C) $288 
D) $96 
A) $450 
B) $12 
C) $288 
D) $96

Question 12

An allocation of extra funds to cover uncertainties and improve chances that the project can be completed within the timeframe originally specified is a:

Accepted Answer

A) Setback. 
B) Budget contingency. 
C) Reallocation budget. 
D) Reserve line budget. 
A) Setback. 
B) Budget contingency. 
C) Reallocation budget. 
D) Reserve line budget.

Question 13

The new bridge would require 14 piers to support it and it was known that each time a pier is sunk into the harbor it would take 30 man hours of labor at $50 per hour.An activity-based costing of the entire pier system results in a total labor cost of:

Accepted Answer

A) $19,500. 
B) $21,000. 
C) $22,500. 
D) $24,000. 
A) $19,500. 
B) $21,000. 
C) $22,500. 
D) $24,000.

Question 14

A systems analyst is paid at the rate of $50/hour and will be needed for 40 hours.Her employer uses an overhead multiplier of 60% and does not factor in personal time.Her total direct labor cost should be billed at:

Accepted Answer

A) $2,000. 
B) $3,200. 
C) $1,250. 
D) $4,500. 
A) $2,000. 
B) $3,200. 
C) $1,250. 
D) $4,500.

Question 15

Top-down budgeting,where input is gathered directly from the organization's top management,is often quite accurate in aggregate.

Accepted Answer

A) True 
 B)False

Question 16

What learning rate is being demonstrated if the first unit takes 25 hours and the third unit takes 24 hours to complete?

Accepted Answer

A) Greater than or equal to 97 percent 
B) Less than 97 percent but greater than or equal to 95 percent 
C) Less than 95 percent but greater than or equal to 93 percent 
D) Less than 93 percent 
A) Greater than or equal to 97 percent 
B) Less than 97 percent but greater than or equal to 95 percent 
C) Less than 95 percent but greater than or equal to 93 percent 
D) Less than 93 percent

Question 17

If it takes 40 hours to complete the first unit and the company knows from experience that the learning rate should be 0.80,how fast can they be expected to finish all twelve units?

Accepted Answer

A) 18 hours 
B) 289 hours 
C) 264 hours 
D) 316 hours 
A) 18 hours 
B) 289 hours 
C) 264 hours 
D) 316 hours

Question 18

A common reason for cost overruns in a project is a low initial estimate of project cost.

Accepted Answer

A) True 
 B)False

Question 19

A budget that is created by starting with the work breakdown structure,determining costs for each work package,and then adding these costs together is:

Accepted Answer

A) Zero-based budgeting. 
B) Top-down budgeting. 
C) Bottom-up budgeting. 
D) Activity-based budgeting. 
A) Zero-based budgeting. 
B) Top-down budgeting. 
C) Bottom-up budgeting. 
D) Activity-based budgeting.

Question 20

It was fortunate that the project budget included contingency funding;the top manager had not foreseen that the project would need the services of their elite slide rule squad in more than one area at the same time.Design couldn't complete their work without their services,nor could marketing,or production.Contingency funds came in handy to meet the unanticipated:

Accepted Answer

A) Change in project scope. 
B) Abnormal project conditions. 
C) Consequences of Murphy's Law. 
D) Interaction costs. 
A) Change in project scope. 
B) Abnormal project conditions. 
C) Consequences of Murphy's Law. 
D) Interaction costs.

Workers paid $15.00 per hour with an overhead charge of 1.45 and a personal time allowance of 1.15,have what total direct labor cost for an 8-hour work day?

Which worker's wages would constitute a direct cost for a construction project?

What is the cumulative project budget for September in this time-phased budget? Activity July August Septernber October Novernber RFP 34,721 Aralysis 11,049 33,655 34,388 Pesiggn 33,718 34,474 26,759 36,328 Codirg 7,713 34,905 40,244 Testing 40,916 896 Trairing 20,958 9,327 Roll-Out 8,186

An early warning signal for the potential of an overdrawn budget is created when:

An activity with a learning rate of 0.85 takes 25 hours for the first iteration.How long will it take to complete this task for the 15th time?

What is activity-based costing and how is it performed?

When asked to provide an estimate of an irrigation system,Pete looked from one end of the field to the other,licked a finger and held it in the air,squinted into the sun and said $25,000,give or take 30%.The technique employed for cost estimation is:

Function point analysis is a system for estimating the size of software projects based on the number of lines of code a typical programmer can write in a day.

Three workers complete a full 8-hour day finishing concrete for a terrace.All three workers are paid $12 an hour and the job bills to the customer for $450.What are the total direct labor costs?

An allocation of extra funds to cover uncertainties and improve chances that the project can be completed within the timeframe originally specified is a:

The new bridge would require 14 piers to support it and it was known that each time a pier is sunk into the harbor it would take 30 man hours of labor at $50 per hour.An activity-based costing of the entire pier system results in a total labor cost of:

A systems analyst is paid at the rate of $50/hour and will be needed for 40 hours.Her employer uses an overhead multiplier of 60% and does not factor in personal time.Her total direct labor cost should be billed at:

Top-down budgeting,where input is gathered directly from the organization's top management,is often quite accurate in aggregate.

What learning rate is being demonstrated if the first unit takes 25 hours and the third unit takes 24 hours to complete?

If it takes 40 hours to complete the first unit and the company knows from experience that the learning rate should be 0.80,how fast can they be expected to finish all twelve units?

A common reason for cost overruns in a project is a low initial estimate of project cost.

A budget that is created by starting with the work breakdown structure,determining costs for each work package,and then adding these costs together is:

Introduction: Why Project Management

The Organizational Context: Strategy, Structure, and Culture

Project Selection and Portfolio Management

Leadership and the Project Manager

Scope Management

Project Team Building, Conflict, and Negotiation

Risk Management

Project Scheduling: Networks, Duration Estimation, and Critical Path

Project Scheduling: Lagging, Crashing, and Activity Networks

Advanced Topics in Planning and Scheduling: Agile and Critical Chain

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters

Exam 8: Cost Estimation and Budgeting

Workers paid $15.00 per hour with an overhead charge of 1.45 and a personal time allowance of 1.15,have what total direct labor cost for an 8-hour work day?

Which worker's wages would constitute a direct cost for a construction project?

What is the cumulative project budget for September in this time-phased budget? Activity July August Septernber October Novernber RFP 34,721 Aralysis 11,049 33,655 34,388 Pesiggn 33,718 34,474 26,759 36,328 Codirg 7,713 34,905 40,244 Testing 40,916 896 Trairing 20,958 9,327 Roll-Out 8,186

An early warning signal for the potential of an overdrawn budget is created when:

An activity with a learning rate of 0.85 takes 25 hours for the first iteration.How long will it take to complete this task for the 15th time?

What is activity-based costing and how is it performed?

When asked to provide an estimate of an irrigation system,Pete looked from one end of the field to the other,licked a finger and held it in the air,squinted into the sun and said $25,000,give or take 30%.The technique employed for cost estimation is:

Function point analysis is a system for estimating the size of software projects based on the number of lines of code a typical programmer can write in a day.

Three workers complete a full 8-hour day finishing concrete for a terrace.All three workers are paid $12 an hour and the job bills to the customer for $450.What are the total direct labor costs?

An allocation of extra funds to cover uncertainties and improve chances that the project can be completed within the timeframe originally specified is a:

The new bridge would require 14 piers to support it and it was known that each time a pier is sunk into the harbor it would take 30 man hours of labor at $50 per hour.An activity-based costing of the entire pier system results in a total labor cost of:

A systems analyst is paid at the rate of $50/hour and will be needed for 40 hours.Her employer uses an overhead multiplier of 60% and does not factor in personal time.Her total direct labor cost should be billed at:

Top-down budgeting,where input is gathered directly from the organization's top management,is often quite accurate in aggregate.

What learning rate is being demonstrated if the first unit takes 25 hours and the third unit takes 24 hours to complete?

If it takes 40 hours to complete the first unit and the company knows from experience that the learning rate should be 0.80,how fast can they be expected to finish all twelve units?

A common reason for cost overruns in a project is a low initial estimate of project cost.

A budget that is created by starting with the work breakdown structure,determining costs for each work package,and then adding these costs together is:

Introduction: Why Project Management

The Organizational Context: Strategy, Structure, and Culture

Project Selection and Portfolio Management

Leadership and the Project Manager

Scope Management

Project Team Building, Conflict, and Negotiation

Risk Management

Project Scheduling: Networks, Duration Estimation, and Critical Path

Project Scheduling: Lagging, Crashing, and Activity Networks

Advanced Topics in Planning and Scheduling: Agile and Critical Chain

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters