Question 1

Discuss how the accuracy of cost estimates becomes more precise during a project.

Accepted Answer

Key concepts to be covered in the respon

Question 2

All of the following factors must be in place in order to develop an analogous estimate effectively EXCEPT:

Accepted Answer

A)  An organization must know details behind the time value of money. 
B)  An organization must know how the proposed project differs from the previous project. 
C)  An organization must have experience in performing similar projects. 
D)  An organization must know how much previous projects actually cost. 
A)  An organization must know details behind the time value of money. 
B)  An organization must know how the proposed project differs from the previous project. 
C)  An organization must have experience in performing similar projects. 
D)  An organization must know how much previous projects actually cost.

Question 3

Costs that repeat as project work continues such as writing code are appropriately classified as:

Accepted Answer

A)  fixed costs. 
B)  indirect costs. 
C)  nonrecurring costs. 
D)  recurring costs 
A)  fixed costs. 
B)  indirect costs. 
C)  nonrecurring costs. 
D)  recurring costs

Question 4

Generally,parametric estimating requires less information and time than analogous estimating.

Accepted Answer

A) True 
 B)False

Question 5

Most projects will employ bottom-up estimating at some point to serve as a basis for estimating cash flow needs and for controlling the project.

Accepted Answer

A) True 
 B)False

Question 6

Estimate cost is the process of developing an approximation of the monetary resources needed to complete project activities.

Accepted Answer

A) True 
 B)False

Question 7

Inflating the value of future revenue and cost streams to account for the time value of money enables better project decisions.

Accepted Answer

A) True 
 B)False

Question 8

Plan cost management is the process that establishes the policies,procedures and documentation for planning,managing,expending,and controlling project costs.

Accepted Answer

A) True 
 B)False

Question 9

The approved time-phased project budget,excluding any management reserves,which can be changed only through formal change control procedures and is used as a basis of comparing actual results,is called a ____:

Accepted Answer

A)  measurement baseline. 
B)  cost baseline. 
C)  cost benchmark 
D)  control account 
A)  measurement baseline. 
B)  cost baseline. 
C)  cost benchmark 
D)  control account

Question 10

Figure 9-1 Time-phased budget
-Consider the time-phased budget presented in Figure 9-1.What is the cumulative project budget through the end of April?

Accepted Answer

A)  $ 8.000 
B)  $20,000 
C)  $38,000 
D)  $46,000 
A)  $ 8.000 
B)  $20,000 
C)  $38,000 
D)  $46,000

Question 11

Which estimating technique decomposes the work into detailed pieces for which estimates are prepared and then aggregated into a total quantity for the project?

Accepted Answer

A)  piece meal pricing 
B)  decomposition estimating 
C)  bottom-up estimating 
D)  grass roots estimating 
A)  piece meal pricing 
B)  decomposition estimating 
C)  bottom-up estimating 
D)  grass roots estimating

Question 12

Activity based costing allocates indirect costs to fixed costs based on different types of cost drivers.Which of the following is one of the cost drivers that serve as a basis of cost allocation?

Accepted Answer

A)  number of units produced 
B)  number of labor hours 
C)  quantity of materials used 
D)  direct equipment costs 
A)  number of units produced 
B)  number of labor hours 
C)  quantity of materials used 
D)  direct equipment costs

Question 13

All of the following items describe an aspect of life cycle costing EXCEPT:

Accepted Answer

A)  Life cycle cost includes the cost of creating the project and using the result. 
B)  Many project selection decisions are made based upon life cycle cost. 
C)  Life cycle cost only includes the project cost from initiating through closing 
D)  Project managers may need to consider product disposition costs to calculate total life cycle cost. 
A)  Life cycle cost includes the cost of creating the project and using the result. 
B)  Many project selection decisions are made based upon life cycle cost. 
C)  Life cycle cost only includes the project cost from initiating through closing 
D)  Project managers may need to consider product disposition costs to calculate total life cycle cost.

Question 14

The component of the project management plan that describes how costs will be planned,structured and controlled is called the project financial plan.

Accepted Answer

A) True 
 B)False

Question 15

Special cause variation arises when something out of the ordinary occurs.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following terms best describes a provision in the project management plan to mitigate cost and / or schedule risk?

Accepted Answer

A)  reserve 
B)  insurance 
C)  padding 
D)  discretionary fund 
A)  reserve 
B)  insurance 
C)  padding 
D)  discretionary fund

Question 17

A contingency reserve is an amount of the project budget withheld for management control purposes,for unforeseen work that is within the scope.

Accepted Answer

A) True 
 B)False

Question 18

Project managers should not lie to themselves or others regarding project costs.

Accepted Answer

A) True 
 B)False

Question 19

The documentation of a project cost estimate generally requires substantial supporting detail to include all of these EXCEPT:

Accepted Answer

A)  a description of scope. 
B)  management reserve needs 
C)  the estimating methods and a range of possible outcomes. 
D)  assumptions and constraints. 
A)  a description of scope. 
B)  management reserve needs 
C)  the estimating methods and a range of possible outcomes. 
D)  assumptions and constraints.

Question 20

Projects often include indirect costs that are not associated directly with one specific project.Which of the following items are most typically considered to be indirect costs?

Accepted Answer

A)  costs associated with material and purchased parts 
B)  the cost of labor provided by project team members,consultants and subcontractors 
C)  executive salaries,utilities and insurance 
D)  travel cost for the project team 
A)  costs associated with material and purchased parts 
B)  the cost of labor provided by project team members,consultants and subcontractors 
C)  executive salaries,utilities and insurance 
D)  travel cost for the project team

Discuss how the accuracy of cost estimates becomes more precise during a project.

All of the following factors must be in place in order to develop an analogous estimate effectively EXCEPT:

Costs that repeat as project work continues such as writing code are appropriately classified as:

Generally,parametric estimating requires less information and time than analogous estimating.

Most projects will employ bottom-up estimating at some point to serve as a basis for estimating cash flow needs and for controlling the project.

Estimate cost is the process of developing an approximation of the monetary resources needed to complete project activities.

Inflating the value of future revenue and cost streams to account for the time value of money enables better project decisions.

Plan cost management is the process that establishes the policies,procedures and documentation for planning,managing,expending,and controlling project costs.

The approved time-phased project budget,excluding any management reserves,which can be changed only through formal change control procedures and is used as a basis of comparing actual results,is called a ____:

Figure 9-1 Time-phased budget -Consider the time-phased budget presented in Figure 9-1.What is the cumulative project budget through the end of April?

Which estimating technique decomposes the work into detailed pieces for which estimates are prepared and then aggregated into a total quantity for the project?

Activity based costing allocates indirect costs to fixed costs based on different types of cost drivers.Which of the following is one of the cost drivers that serve as a basis of cost allocation?

All of the following items describe an aspect of life cycle costing EXCEPT:

The component of the project management plan that describes how costs will be planned,structured and controlled is called the project financial plan.

Special cause variation arises when something out of the ordinary occurs.

Which of the following terms best describes a provision in the project management plan to mitigate cost and / or schedule risk?

A contingency reserve is an amount of the project budget withheld for management control purposes,for unforeseen work that is within the scope.

Project managers should not lie to themselves or others regarding project costs.

The documentation of a project cost estimate generally requires substantial supporting detail to include all of these EXCEPT:

Projects often include indirect costs that are not associated directly with one specific project.Which of the following items are most typically considered to be indirect costs?

Introduction to Project Management

Project Selection and Prioritization

Organizational Capability: Structure,Culture and Roles

Chartering Projects

Stakeholder Analysis and Communication Planning

Defining Scope and Constructing Work Breakdown Structures WBS

Scheduling Activities

Resourcing Projects

Project Risk Planning

Project Quality Planning and Project Kick-Off

Project Supply Chain Management

Leading and Managing Project Teams

Determining Project Progress and Results

Finishing the Project

Filters

Exam 9: Budgeting Projects

Discuss how the accuracy of cost estimates becomes more precise during a project.

All of the following factors must be in place in order to develop an analogous estimate effectively EXCEPT:

Costs that repeat as project work continues such as writing code are appropriately classified as:

Generally,parametric estimating requires less information and time than analogous estimating.

Most projects will employ bottom-up estimating at some point to serve as a basis for estimating cash flow needs and for controlling the project.

Estimate cost is the process of developing an approximation of the monetary resources needed to complete project activities.

Inflating the value of future revenue and cost streams to account for the time value of money enables better project decisions.

Plan cost management is the process that establishes the policies,procedures and documentation for planning,managing,expending,and controlling project costs.

The approved time-phased project budget,excluding any management reserves,which can be changed only through formal change control procedures and is used as a basis of comparing actual results,is called a ____:

Figure 9-1 Time-phased budget -Consider the time-phased budget presented in Figure 9-1.What is the cumulative project budget through the end of April?

Which estimating technique decomposes the work into detailed pieces for which estimates are prepared and then aggregated into a total quantity for the project?

Activity based costing allocates indirect costs to fixed costs based on different types of cost drivers.Which of the following is one of the cost drivers that serve as a basis of cost allocation?

All of the following items describe an aspect of life cycle costing EXCEPT:

The component of the project management plan that describes how costs will be planned,structured and controlled is called the project financial plan.

Special cause variation arises when something out of the ordinary occurs.

Which of the following terms best describes a provision in the project management plan to mitigate cost and / or schedule risk?

A contingency reserve is an amount of the project budget withheld for management control purposes,for unforeseen work that is within the scope.

Project managers should not lie to themselves or others regarding project costs.

The documentation of a project cost estimate generally requires substantial supporting detail to include all of these EXCEPT:

Projects often include indirect costs that are not associated directly with one specific project.Which of the following items are most typically considered to be indirect costs?

Introduction to Project Management

Project Selection and Prioritization

Organizational Capability: Structure,Culture and Roles

Chartering Projects

Stakeholder Analysis and Communication Planning

Defining Scope and Constructing Work Breakdown Structures WBS

Scheduling Activities

Resourcing Projects

Project Risk Planning

Project Quality Planning and Project Kick-Off

Project Supply Chain Management

Leading and Managing Project Teams

Determining Project Progress and Results

Finishing the Project

Filters