Exam 9: Budgeting Projects

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?

Typically,expedited costs are preferred over regular costs.

Which estimating technique uses an algorithm to calculate cost or duration based on historical data and other project parameters?

There are many causes of variation in project costs.Which of the following accurately describes the nature of this variation?

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.

Describe several sources of uncertainty in estimating the cost of a project as well as strategies you can employ to address uncertainty.

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?

On small projects,the cost management plan may simply address the accuracy of estimating,the source of funding and cost reporting procedures.

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

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

Vendor bid analysis is used to determine whether the price being asked by the vendors appears to be reasonable.

All of the following are among the benefits realized as a consequence of developing a cost management plan EXCEPT:

Which estimating technique uses historical data from a similar project as a starting point for creating a time or cost estimate?

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

Fixed costs remain the same regardless of the size or volume of work,while variable costs vary directly with volume of use.

"Unknown unknowns" are unexpected events which can occur when the project is underway.All of the following accurately describe an implication associated with unknown unknowns EXCEPT:

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.

What type of cost is incurred when a project must be conducted faster than normal,and overtime for workers and / or extra charges for rapid delivery from suppliers are necessary?

The process of developing an approximation of the cost of the monetary resources needed to complete project activities is known as:

In addition to optimizing project life cycle costs,value engineering can also be used to improve quality or expand market share.