Question 1

A time-phased budget allocates costs across both project activities and the anticipated time in which the budget is to be expended.

Accepted Answer

A) True 
 B)False

Question 2

Which of these estimates should be the most accurate?

Accepted Answer

A) Parametric 
B) Definitive 
C) Comparative 
D) Order of magnitude 
A) Parametric 
B) Definitive 
C) Comparative 
D) Order of magnitude

Question 3

Cost estimates that are based as a guideline on real numbers,or figures derived after the completion of preliminary design work,are:

Accepted Answer

A) Definitive estimates. 
B) Order of magnitude estimates. 
C) Parametric estimates. 
D) Feasibility estimates. 
A) Definitive estimates. 
B) Order of magnitude estimates. 
C) Parametric estimates. 
D) Feasibility estimates.

Question 4

What are the major issues with cost estimation of software projects?

Accepted Answer

The software project industry has a very

Question 5

The project plan is supported by:

Accepted Answer

A) The work breakdown structure,the budget,and the schedule. 
B) The work breakdown structure,the budget,and the work packages. 
C) The work breakdown structure,the work packages,and the schedule. 
D) The work breakdown structure,the schedule,and the contingency plan. 
A) The work breakdown structure,the budget,and the schedule. 
B) The work breakdown structure,the budget,and the work packages. 
C) The work breakdown structure,the work packages,and the schedule. 
D) The work breakdown structure,the schedule,and the contingency plan.

Question 6

Activity-based costing is based on the notion that projects consume activities and activities consume resources.

Accepted Answer

A) True 
 B)False

Question 7

An expedited cost is one that does not vary with respect to their usage.

Accepted Answer

A) True 
 B)False

Question 8

Which of these indirect costs is typically classified as an overhead cost?

Accepted Answer

A) Advertising 
B) Shipping 
C) Sales commissions 
D) Taxes 
A) Advertising 
B) Shipping 
C) Sales commissions 
D) Taxes

Question 9

What is the total amount budgeted for November 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) $8,186 
B) $18,409 
C) $389,828 
D) $408,237 
A) $8,186 
B) $18,409 
C) $389,828 
D) $408,237

Question 10

An advantage of top-down budgeting is:

Accepted Answer

A) That top management estimates of project costs are often quite accurate,at least in aggregate. 
B) An elimination of the friction between top and lower levels in the competition for budget money. 
C) That projects are no longer a zero-sum game among lower level managers. 
D) That top management budgets,by definition,cannot experience overruns. 
A) That top management estimates of project costs are often quite accurate,at least in aggregate. 
B) An elimination of the friction between top and lower levels in the competition for budget money. 
C) That projects are no longer a zero-sum game among lower level managers. 
D) That top management budgets,by definition,cannot experience overruns.

Question 11

A disadvantage of contingency funds is:

Accepted Answer

A) A recognition that the future contains both knowns and unknowns and the problems that might arise will impact the budget. 
B) It is difficult to ascertain across what project activities contingency funds should be applied. 
C) That application to the contingency fund gives an early warning signal of a potential overdrawn budget. 
D) That provision is made in the company plans for an increase in project cost. 
A) A recognition that the future contains both knowns and unknowns and the problems that might arise will impact the budget. 
B) It is difficult to ascertain across what project activities contingency funds should be applied. 
C) That application to the contingency fund gives an early warning signal of a potential overdrawn budget. 
D) That provision is made in the company plans for an increase in project cost.

Question 12

Project cost estimates usually anticipate that resources will be available,that the weather will not be extreme,and that funding will materialize,creating what are called:

Accepted Answer

A) Hyperactivity. 
B) Standard operating procedures. 
C) Standard duress. 
D) Normal conditions. 
A) Hyperactivity. 
B) Standard operating procedures. 
C) Standard duress. 
D) Normal conditions.

Question 13

Provide examples and discuss the differences between direct and indirect costs.

Accepted Answer

Direct costs are those clearly assigned

Question 14

Which of the following is a direct cost?

Accepted Answer

A) Labor 
B) Rent 
C) Depreciation on equipment 
D) Health benefits 
A) Labor 
B) Rent 
C) Depreciation on equipment 
D) Health benefits

Question 15

Juan Valdez trades in his old donkeys for two new llamas in order to transport his mountain grown coffee to the marketplace.Llamas make excellent pack animals and are surefooted,so I should be able to spend more time harvesting and less time wrangling animals,Juan thought to himself as he led the two back to his mountain farm.Much to his dismay,the first time he tried to strap the bags of coffee beans to his new llamas they resisted by running away and when he got close,they spit copiously.However,he was persistent and methodical,and he noticed that things went a little better each day.The time it took to get the llamas loaded up is summarized in the table.
 $$\begin{array} { | l | l | l | l |} 
\hline \text { Day } & \text { Time } ( \mathrm { min } ) & \text { Day } & \text { Tirne (mir) } \
\hline 1 & 140 & 5 & 84 \
\hline 2 & 116 & 6 & 79 \
\hline 3 & 100 & 7 & 79 \
\hline 4 & 93 & 8 & 76\
\hline
\end{array}$$ What learning rate is evident from the data?
How long will it take to load up the llamas next month (on the 30th attempt)if the same learning pattern continues?

Accepted Answer

The data were generated using an 80% lea

Question 16

A key for developing project cost estimates is to:

Accepted Answer

A) Cost the project while considering the total package. 
B) Cost the project on a work package and task basis. 
C) Cost the project on a major module basis. 
D) Cost the project and add 33% for contingency. 
A) Cost the project while considering the total package. 
B) Cost the project on a work package and task basis. 
C) Cost the project on a major module basis. 
D) Cost the project and add 33% for contingency.

Question 17

Input is received from an organization's management to create a project budget in:

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 18

The order of magnitude cost estimate is used when:

Accepted Answer

A) Ballpark estimates are not considered accurate enough. 
B) Historical data are readily available. 
C) Information or time is scarce. 
D) Parametric estimation has already been performed. 
A) Ballpark estimates are not considered accurate enough. 
B) Historical data are readily available. 
C) Information or time is scarce. 
D) Parametric estimation has already been performed.

Question 19

Poor initial scope development and work breakdown structure often creates cost overruns that are attributable to:

Accepted Answer

A) Lack of definition. 
B) Deliberate low initial estimates. 
C) Unexpected technical difficulties. 
D) External factors. 
A) Lack of definition. 
B) Deliberate low initial estimates. 
C) Unexpected technical difficulties. 
D) External factors.

Question 20

A contingency rate of 10% on a building project budgeted at $20 million means the project organization estimated project costs to be:

Accepted Answer

A) $22 million. 
B) $2 million. 
C) $18 million. 
D) $200 million. 
A) $22 million. 
B) $2 million. 
C) $18 million. 
D) $200 million.

A time-phased budget allocates costs across both project activities and the anticipated time in which the budget is to be expended.

Which of these estimates should be the most accurate?

Cost estimates that are based as a guideline on real numbers,or figures derived after the completion of preliminary design work,are:

What are the major issues with cost estimation of software projects?

The project plan is supported by:

Activity-based costing is based on the notion that projects consume activities and activities consume resources.

An expedited cost is one that does not vary with respect to their usage.

Which of these indirect costs is typically classified as an overhead cost?

What is the total amount budgeted for November 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 advantage of top-down budgeting is:

A disadvantage of contingency funds is:

Project cost estimates usually anticipate that resources will be available,that the weather will not be extreme,and that funding will materialize,creating what are called:

Provide examples and discuss the differences between direct and indirect costs.

Which of the following is a direct cost?

A key for developing project cost estimates is to:

Input is received from an organization's management to create a project budget in:

The order of magnitude cost estimate is used when:

Poor initial scope development and work breakdown structure often creates cost overruns that are attributable to:

A contingency rate of 10% on a building project budgeted at $20 million means the project organization estimated project costs to be:

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

A time-phased budget allocates costs across both project activities and the anticipated time in which the budget is to be expended.

Which of these estimates should be the most accurate?

Cost estimates that are based as a guideline on real numbers,or figures derived after the completion of preliminary design work,are:

What are the major issues with cost estimation of software projects?

The project plan is supported by:

Activity-based costing is based on the notion that projects consume activities and activities consume resources.

An expedited cost is one that does not vary with respect to their usage.

Which of these indirect costs is typically classified as an overhead cost?

What is the total amount budgeted for November 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 advantage of top-down budgeting is:

A disadvantage of contingency funds is:

Project cost estimates usually anticipate that resources will be available,that the weather will not be extreme,and that funding will materialize,creating what are called:

Provide examples and discuss the differences between direct and indirect costs.

Which of the following is a direct cost?

A key for developing project cost estimates is to:

Input is received from an organization's management to create a project budget in:

The order of magnitude cost estimate is used when:

Poor initial scope development and work breakdown structure often creates cost overruns that are attributable to:

A contingency rate of 10% on a building project budgeted at $20 million means the project organization estimated project costs to be:

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