Exam 8: Cost Estimation and Budgeting

"If the weather holds and the utility service has correctly marked the location of the gas,telephone,and electric lines zigzagging across my property,I should be able to install the accent lighting in my back yard in an afternoon's time," the do-it-yourselfer commented to his jealous (and skeptical)neighbor.The only reply he received was his neighbor's,"Good luck with all that,I remember reading somewhere that:

What is the total project budget for design 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

There is a tendency for different departments or functions to compete for scarce resources in a zero-sum game when bottom-up budgeting is used to develop a project budget.

When properly performed,bottom-up budgeting has the disadvantage of:

Contingency money is: