Exam 8: Cost Estimation and Budgeting

Big Mike has to prepare a bid for the swimming pools to be placed in every backyard in a new housing addition.Each swimming pool represents only a slight variation on the other,so there is a good opportunity to leverage learning effects in the bid process.A swimming pool installation can be broken down into four major steps: excavation,concrete,plumbing,and finish work.Mike has found the best contractors and asks each of them how long it will take to complete work on the first pool and what their learning rates are.Amazingly,each contractor is intimately familiar with learning curve theory and knows what his learning rate is for this type of work.This information is summarized in the table. How long will it take to complete the 25th pool for the subdivision? How long will it take to complete all 25 pools for the subdivision?

(Essay)

4.8/5

(45)

Question 41

________ begins with the work packages of the work breakdown structure and specifies funds that are needed to support the tasks.These costs are aggregated by managers and duplicate costs are removed as managers' budgets are combined.

(Essay)

4.8/5

(34)

Question 42

Activity-based costing is a budgeting method that identifies ________ associated with activities that consume resources.

(Essay)

4.9/5

(42)

Question 43

Top-down budgeting,where input is gathered directly from the organization's top management,is often quite accurate.

(True/False)

4.9/5

(37)

Question 44

An order of magnitude estimate is usually more accurate than a ballpark estimate.

(True/False)

4.7/5

(37)

Question 45

A learning rate of 90% means that for every doubling of output,the time required by the activity falls by 10%.

(True/False)

4.8/5

(37)

Question 46

Input is received from an organization's management to create a project budget in:

(Multiple Choice)

5.0/5

(39)

Question 47

Every morning I stumble into the office,turn on the lights and brew a pot of coffee.Sometimes that's all I do and other days I accomplish a great deal.The coffee and light expenses should be classified as ________ costs.

(Essay)

4.9/5

(37)

Question 48

Consultations with a client cost $50 and copying a page costs $1.Once we know how many consultations and copies are needed,we can estimate the cost of the divorce project thanks to our ________ approach to budgeting.

(Essay)

4.8/5

(40)

Question 49

Unplanned costs incurred when steps are taken to speed up the project's completion are ________.

(Essay)

4.8/5

(30)

Question 50

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

(Multiple Choice)

4.8/5

(38)

Question 51

Workers paid $15.00 per hour with an overhead charge of 1.45 and a personal time allowance of 1.15,have what total direct labor cost for an 8-hour work day?

(Multiple Choice)

4.9/5

(45)

Question 52

An allocation of extra funds to cover uncertainties and improve chances that the project can be completed within the timeframe originally specified is a:

(Multiple Choice)

4.7/5

(41)

Question 53

It took 80 hours of analysis to complete the first phase,but the second phase was done in 74 hours.If this learning rate continues,then the 8^th analysis should take a mere:

(Multiple Choice)

4.8/5

(40)

Question 54

The gentleman farmer and surrealist aficionado commissioned a mural on barn that was an homage to Salvador Dalí's Persistence of Memory with a few farm animals included.The project would require the services of a senior muralist,a junior muralist,and a gofer.The senior muralist has an annual salary of $120,000,the junior muralist draws an annual salary of $75,000,and the gofer makes $30,000 per year.It is anticipated that the project will require 25 hours of senior muralist time,40 hours of junior muralist time,and 60 hours of gofer time.Overhead charges vary by position;the gofer has a lower overhead rate (30%)than the two muralist positions (50%).Use 2080 hours as an estimate for the number of hours in a year and a 15% factor for personal time.What is the total direct labor cost for the project?

(Essay)

4.8/5

(33)

Question 55

The project plan is supported by:

(Multiple Choice)

4.8/5

(41)

Question 56

If it takes 50 hours to complete the first unit and the company knows from experience that the learning rate should be 0.85,how fast can they be expected to finish all ten units?

(Multiple Choice)

4.8/5

(46)

Question 57

Which of the following is a direct cost?

(Multiple Choice)

5.0/5

(43)

Question 58

Which of the following is NOT contained in a typical time-phased budget?

(Multiple Choice)

4.7/5

(29)

Question 59

What is the total project budget in this time-phased budget?

(Multiple Choice)

4.8/5

(39)

Question 60

Showing 41 - 60 of 114

________ begins with the work packages of the work breakdown structure and specifies funds that are needed to support the tasks.These costs are aggregated by managers and duplicate costs are removed as managers' budgets are combined.

Activity-based costing is a budgeting method that identifies ________ associated with activities that consume resources.

Top-down budgeting,where input is gathered directly from the organization's top management,is often quite accurate.

An order of magnitude estimate is usually more accurate than a ballpark estimate.

A learning rate of 90% means that for every doubling of output,the time required by the activity falls by 10%.

Input is received from an organization's management to create a project budget in:

Every morning I stumble into the office,turn on the lights and brew a pot of coffee.Sometimes that's all I do and other days I accomplish a great deal.The coffee and light expenses should be classified as ________ costs.

Consultations with a client cost $50 and copying a page costs $1.Once we know how many consultations and copies are needed,we can estimate the cost of the divorce project thanks to our ________ approach to budgeting.

Unplanned costs incurred when steps are taken to speed up the project's completion are ________.

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

Workers paid $15.00 per hour with an overhead charge of 1.45 and a personal time allowance of 1.15,have what total direct labor cost for an 8-hour work day?

An allocation of extra funds to cover uncertainties and improve chances that the project can be completed within the timeframe originally specified is a:

It took 80 hours of analysis to complete the first phase,but the second phase was done in 74 hours.If this learning rate continues,then the 8^th analysis should take a mere:

The project plan is supported by:

If it takes 50 hours to complete the first unit and the company knows from experience that the learning rate should be 0.85,how fast can they be expected to finish all ten units?

Which of the following is a direct cost?

Which of the following is NOT contained in a typical time-phased budget?

What is the total project budget in this time-phased budget?

Introduction: Why Project Management

The Organizational Context: Strategy, structure, and Culture

Project Selection and Portfolio Management

Leadership and the Project Manager

Scope Management

Project Team Building, conflict, and Negotiation

Risk Management

Project Scheduling: Networks, duration Estimation, and Critical Path

Project Scheduling: Lagging, crashing, and Activity Networks

Critical Chain Project Scheduling

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters

Exam 8: Cost Estimation and Budgeting

________ begins with the work packages of the work breakdown structure and specifies funds that are needed to support the tasks.These costs are aggregated by managers and duplicate costs are removed as managers' budgets are combined.

Activity-based costing is a budgeting method that identifies ________ associated with activities that consume resources.

Top-down budgeting,where input is gathered directly from the organization's top management,is often quite accurate.

An order of magnitude estimate is usually more accurate than a ballpark estimate.

A learning rate of 90% means that for every doubling of output,the time required by the activity falls by 10%.

Input is received from an organization's management to create a project budget in:

Every morning I stumble into the office,turn on the lights and brew a pot of coffee.Sometimes that's all I do and other days I accomplish a great deal.The coffee and light expenses should be classified as ________ costs.

Consultations with a client cost $50 and copying a page costs $1.Once we know how many consultations and copies are needed,we can estimate the cost of the divorce project thanks to our ________ approach to budgeting.

Unplanned costs incurred when steps are taken to speed up the project's completion are ________.

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

Workers paid $15.00 per hour with an overhead charge of 1.45 and a personal time allowance of 1.15,have what total direct labor cost for an 8-hour work day?

An allocation of extra funds to cover uncertainties and improve chances that the project can be completed within the timeframe originally specified is a:

It took 80 hours of analysis to complete the first phase,but the second phase was done in 74 hours.If this learning rate continues,then the 8th analysis should take a mere:

The project plan is supported by:

If it takes 50 hours to complete the first unit and the company knows from experience that the learning rate should be 0.85,how fast can they be expected to finish all ten units?

Which of the following is a direct cost?

Which of the following is NOT contained in a typical time-phased budget?

What is the total project budget in this time-phased budget?

Introduction: Why Project Management

The Organizational Context: Strategy, structure, and Culture

Project Selection and Portfolio Management

Leadership and the Project Manager

Scope Management

Project Team Building, conflict, and Negotiation

Risk Management

Project Scheduling: Networks, duration Estimation, and Critical Path

Project Scheduling: Lagging, crashing, and Activity Networks

Critical Chain Project Scheduling

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters

It took 80 hours of analysis to complete the first phase,but the second phase was done in 74 hours.If this learning rate continues,then the 8^th analysis should take a mere: