Exam 8: Cost Estimation and Budgeting

A budget contingency of $1 million on a $10 million project means that the project will be planned for a cost of $10 million,but the project organization receives an extra $1 million to guard against unforeseen cost overruns.

Employing an overhead multiplier is sometimes referred to as the ________ rate for direct labor costs.

Activity-based costing and bottom-up budgeting share the step of:

"If anything can go wrong it often will" is an articulation of:

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

Whether it is the Boeing V-22 Osprey or a simple storm door installation for a do-it-yourselfer,nothing is ever completed as quickly or as cheaply as initial estimates due to:

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:

The unofficial rule of thumb for ________ estimates is to aim for an accuracy of plus or minus 30%.

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

Material is an example of a cost that is recurring,variable and direct.

Contingency money is:

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

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

What is the total amount budgeted for design costs in this time-phased budget?

What is the cumulative project budget for September in this time-phased budget?

You are probably looking at a bill for a variable cost when you are paying for:

What is the cumulative cost in February in this time-phased budget?

An activity with a learning rate of 0.8 takes 30 hours for the first iteration.How long will it take to complete this task for the 12th time?

What is the project budget for November in this time-phased budget?

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