Exam 8: Cost Estimation and Budgeting

If it takes 40 hours to complete the first unit and the company knows from experience that the learning rate should be 0.9,how fast can they be expected to finish all ten units?

A(n)________ is a standard unit of measure that represents the functional size of a software application.

Comparative estimates are more accurate than definitive estimates when applied to the same project.

Define learning curve theory and describe how learning curves are used in project management.

An activity with a learning rate of 0.9 takes 20 hours for the first iteration.How long will it take to complete this task for the 10th time?

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

Which of these is typically a nonrecurring cost?

Which of these indirect costs is typically classified as a selling or administrative cost?

The notion that subsequent iterations of an activity require less time than the first attempt means that the activity is governed by ________.

The ________ is a plan that identifies the allocated resources,the project's goals,and the schedule that allows an organization to achieve those goals.

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

What learning rate is being demonstrated if the first unit takes 15 hours and the third unit takes 14 hours to complete?

A systems analyst is paid at the rate of $50/hour and will be needed for 40 hours.Her employer uses an overhead multiplier of 60% and does not factor in personal time.Her total direct labor cost should be billed at:

Describe any three reasons that cost overruns occur in project work.

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

Which of these is typically a recurring cost?

A budget containing disaggregated figures across the schedule when work is planned is a:

What is a budget contingency and what are three reasons it might be useful?

Explain the difference between normal and expedited costs,fixed and variable costs,and recurring or nonrecurring costs.Create a 2 × 2 × 2 matrix and provide one example each (8 total examples)of each combination of these costs.

A budgeting method that assigns costs first to activities and then to projects based on each project's use of resources is: