Question 1

What learning rate is being demonstrated if the first unit takes 25 hours and the fourth unit takes 22 hours to complete?

Accepted Answer

A) greater than or equal to 97 percent 
B) less than 97 percent but greater than or equal to 95 percent 
C) less than 95 percent but greater than or equal to 93 percent 
D) less than 93 percent 
A) greater than or equal to 97 percent 
B) less than 97 percent but greater than or equal to 95 percent 
C) less than 95 percent but greater than or equal to 93 percent 
D) less than 93 percent

Question 2

Estimates based on the assumption that historical data can be used as a frame of reference for current estimates are:

Accepted Answer

A) comparative estimates. 
B) ballpark estimates. 
C) definitive estimates. 
D) feasibility estimates. 
A) comparative estimates. 
B) ballpark estimates. 
C) definitive estimates. 
D) feasibility estimates.

Question 3

Once most of the design work is complete,at a point when the scope and capabilities of the project are quite well understood,a ________ may be developed.

Accepted Answer

A) definitive estimate 
B) comparative estimate 
C) parametric estimate 
D) non-parametric estimate 
A) definitive estimate 
B) comparative estimate 
C) parametric estimate 
D) non-parametric estimate

Question 4

What is a time-phased budget and how does it help a project manager control costs?

Accepted Answer

A time-phased budget allocates costs acr

Question 5

How are top-down and bottom-up budgets created? What advantages does each approach hold over the other?

Accepted Answer

Top-down budgeting requires direct input

Question 6

A time-phased budget allocates costs across both project activities and the anticipated time in which the budget is to be expended.

Accepted Answer

A) True 
 B)False

Question 7

After years of tinkering and reverse engineering initiatives,Kimray had finally unlocked the secrets of the Beta tape format.A quick trip to the rental store was an epiphany for company leadership when they realized that only a handful of Beta tapes were available;the rest of the world had adopted the VHS format seemingly overnight.Now they would have to buy a few of those newfangled VHS machines to see how they ticked.The contingency funds that management had set aside would be put to good use on this:

Accepted Answer

A) change in project scope. 
B) abnormal condition. 
C) unanticipated interaction cost. 
D) latest evidence of Murphy's Law. 
A) change in project scope. 
B) abnormal condition. 
C) unanticipated interaction cost. 
D) latest evidence of Murphy's Law.

Question 8

When their baby was ready to head off to college,the beleaguered parents pulled out the college folder from their file cabinet and added up the cost of putting their first child through college from 1995-2000.The mother whimpered as she factored in the rising cost of tuition,fees,books,and inflation by multiplying the total by 2.5.The father felt a searing pain go through his chest as he saw the total,knowing full well that their cost estimation approach,called:

Accepted Answer

A) an order of magnitude estimate,was highly accurate. 
B) parametric estimation,was highly accurate. 
C) feasibility estimation,was highly accurate. 
D) definitive estimation,was highly accurate. 
A) an order of magnitude estimate,was highly accurate. 
B) parametric estimation,was highly accurate. 
C) feasibility estimation,was highly accurate. 
D) definitive estimation,was highly accurate.

Question 9

Which statement about the use of learning curves is best?

Accepted Answer

A) Learning curve effects stay constant across projects. 
B) A job that is substantially re-engineered will have no disruption of its learning curve. 
C) It may be more likely to see learning curve effects in construction than in research and development. 
D) Every worker performing an identical task will exhibit the same learning effect. 
A) Learning curve effects stay constant across projects. 
B) A job that is substantially re-engineered will have no disruption of its learning curve. 
C) It may be more likely to see learning curve effects in construction than in research and development. 
D) Every worker performing an identical task will exhibit the same learning effect.

Question 10

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

Accepted Answer

A) cannot be determined from the information given 
B) $61,000 
C) $35,000 
D) $71,500 
A) cannot be determined from the information given 
B) $61,000 
C) $35,000 
D) $71,500

Question 11

Three workers complete a full 8-hour day finishing concrete for a terrace.All three workers are paid $12 an hour and the job bills to the customer for $450.What are the total direct labor costs?

Accepted Answer

A) $450 
B) $12 
C) $288 
D) $96 
A) $450 
B) $12 
C) $288 
D) $96

Question 12

Which worker's wages would constitute a direct cost for a construction project?

Accepted Answer

A) the project's cost accountant 
B) the brick mason 
C) the architect's assistant 
D) the foreman 
A) the project's cost accountant 
B) the brick mason 
C) the architect's assistant 
D) the foreman

Question 13

The term expedited cost has the same meaning as crashing cost in the project management milieu.

Accepted Answer

A) True 
 B)False

Question 14

________ is typically added to the project's budget following the identification of all project costs;that is,the project does not include ________ as part of the activity-based costing process.

Accepted Answer

Contingenc

Question 15

An early warning signal for the potential of an overdrawn budget is created when:

Accepted Answer

A) activity-based costing cannot identify drivers. 
B) a bottom-up budget never makes it up the chain of command. 
C) contingency funds are applied for. 
D) a top-down process moves too quickly down to the functional managers. 
A) activity-based costing cannot identify drivers. 
B) a bottom-up budget never makes it up the chain of command. 
C) contingency funds are applied for. 
D) a top-down process moves too quickly down to the functional managers.

Question 16

A disadvantage of contingency funds is:

Accepted Answer

A) a recognition that the future contains both knowns and unknowns and the problems that might arise will impact the budget. 
B) it is difficult to ascertain across what project activities contingency funds should be applied. 
C) that application to the contingency fund gives an early warning signal of a potential overdrawn budget. 
D) that provision is made in the company plans for an increase in project cost. 
A) a recognition that the future contains both knowns and unknowns and the problems that might arise will impact the budget. 
B) it is difficult to ascertain across what project activities contingency funds should be applied. 
C) that application to the contingency fund gives an early warning signal of a potential overdrawn budget. 
D) that provision is made in the company plans for an increase in project cost.

Question 17

When asked to provide an estimate of an irrigation system,Pete looked from one end of the field to the other,licked a finger and held it in the air,squinted into the sun and said $25,000,give or take 30%.The technique employed for cost estimation is:

Accepted Answer

A) parametric. 
B) comparative. 
C) definitive. 
D) ballpark. 
A) parametric. 
B) comparative. 
C) definitive. 
D) ballpark.

Question 18

Function point analysis is a system for estimating the size of software projects based on the number of lines of code a typical programmer can write in a day.

Accepted Answer

A) True 
 B)False

Question 19

Poor initial scope development and work breakdown structure often creates cost overruns that are attributable to:

Accepted Answer

A) lack of definition. 
B) deliberate low initial estimates. 
C) unexpected technical difficulties. 
D) external factors. 
A) lack of definition. 
B) deliberate low initial estimates. 
C) unexpected technical difficulties. 
D) external factors.

Question 20

A contingency rate of 10% on a building project budgeted at $20 million means the project organization is hoping to bring the project in for around:

Accepted Answer

A) $22 million. 
B) $2 million. 
C) $18 million. 
D) $200 million. 
A) $22 million. 
B) $2 million. 
C) $18 million. 
D) $200 million.

What learning rate is being demonstrated if the first unit takes 25 hours and the fourth unit takes 22 hours to complete?

Estimates based on the assumption that historical data can be used as a frame of reference for current estimates are:

Once most of the design work is complete,at a point when the scope and capabilities of the project are quite well understood,a ________ may be developed.

What is a time-phased budget and how does it help a project manager control costs?

How are top-down and bottom-up budgets created? What advantages does each approach hold over the other?

A time-phased budget allocates costs across both project activities and the anticipated time in which the budget is to be expended.

Which statement about the use of learning curves is best?

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

Three workers complete a full 8-hour day finishing concrete for a terrace.All three workers are paid $12 an hour and the job bills to the customer for $450.What are the total direct labor costs?

Which worker's wages would constitute a direct cost for a construction project?

The term expedited cost has the same meaning as crashing cost in the project management milieu.

is typically added to the project's budget following the identification of all project costs;that is,the project does not include as part of the activity-based costing process.

An early warning signal for the potential of an overdrawn budget is created when:

A disadvantage of contingency funds is:

When asked to provide an estimate of an irrigation system,Pete looked from one end of the field to the other,licked a finger and held it in the air,squinted into the sun and said $25,000,give or take 30%.The technique employed for cost estimation is:

Function point analysis is a system for estimating the size of software projects based on the number of lines of code a typical programmer can write in a day.

Poor initial scope development and work breakdown structure often creates cost overruns that are attributable to:

A contingency rate of 10% on a building project budgeted at $20 million means the project organization is hoping to bring the project in for around:

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

What learning rate is being demonstrated if the first unit takes 25 hours and the fourth unit takes 22 hours to complete?

Estimates based on the assumption that historical data can be used as a frame of reference for current estimates are:

Once most of the design work is complete,at a point when the scope and capabilities of the project are quite well understood,a ________ may be developed.

What is a time-phased budget and how does it help a project manager control costs?

How are top-down and bottom-up budgets created? What advantages does each approach hold over the other?

A time-phased budget allocates costs across both project activities and the anticipated time in which the budget is to be expended.

Which statement about the use of learning curves is best?

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

Three workers complete a full 8-hour day finishing concrete for a terrace.All three workers are paid $12 an hour and the job bills to the customer for $450.What are the total direct labor costs?

Which worker's wages would constitute a direct cost for a construction project?

The term expedited cost has the same meaning as crashing cost in the project management milieu.

________ is typically added to the project's budget following the identification of all project costs;that is,the project does not include ________ as part of the activity-based costing process.

An early warning signal for the potential of an overdrawn budget is created when:

A disadvantage of contingency funds is:

When asked to provide an estimate of an irrigation system,Pete looked from one end of the field to the other,licked a finger and held it in the air,squinted into the sun and said $25,000,give or take 30%.The technique employed for cost estimation is:

Function point analysis is a system for estimating the size of software projects based on the number of lines of code a typical programmer can write in a day.

Poor initial scope development and work breakdown structure often creates cost overruns that are attributable to:

A contingency rate of 10% on a building project budgeted at $20 million means the project organization is hoping to bring the project in for around:

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

is typically added to the project's budget following the identification of all project costs;that is,the project does not include as part of the activity-based costing process.