Question 1

Contingency money is:

Accepted Answer

A)  Not formally in the project budget, but held in a separate company account for all projects. 
B)  Added to the project's budget following the identification of all project costs. 
C)  The first line item in any project budget at an amount dictated by company policy. 
D)  Not in the project's budget, but calculated and set aside once the project budget is completed. 
A)  Not formally in the project budget, but held in a separate company account for all projects. 
B)  Added to the project's budget following the identification of all project costs. 
C)  The first line item in any project budget at an amount dictated by company policy. 
D)  Not in the project's budget, but calculated and set aside once the project budget is completed.

Question 2

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

Accepted Answer

A)  A lack of detail needed in project plans. 
B)  A lack of coordination among project managers and functional department heads. 
C)  Being a hindrance to top managers when prioritizing projects that are competing for the same scarce resources. 
D)  A reduction of top management's control of the budget process to one of oversight. 
A)  A lack of detail needed in project plans. 
B)  A lack of coordination among project managers and functional department heads. 
C)  Being a hindrance to top managers when prioritizing projects that are competing for the same scarce resources. 
D)  A reduction of top management's control of the budget process to one of oversight.

Question 3

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 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

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 6

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

Accepted Answer

Activity-based costing (ABC) is a budget

Question 7

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.

Accepted Answer

Examples may vary.
Nonrecurring costs mi

Question 8

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

Accepted Answer

A)  Zero-based budgeting. 
B)  Top-down budgeting. 
C)  Bottom-up budgeting. 
D)  Activity-based budgeting. 
A)  Zero-based budgeting. 
B)  Top-down budgeting. 
C)  Bottom-up budgeting. 
D)  Activity-based budgeting.

Question 9

The project management research in brief titled "Delusion and Deception Taking Place in Large Infrastructure Projects," describes three reasons that cost overruns occur in large infrastructure project work. Briefly describe these three reasons

Accepted Answer

In most cases, the causes of runaway cos

Question 10

What learning rate is being demonstrated if the first unit takes 25 hours and the third unit takes 24 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 11

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.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

The software project industry has a very

Question 13

The new bridge would require 14 piers to support it and it was known that each time a pier is sunk into the harbor it would take 30 man hours of labor at $50 per hour. An activity-based costing of the entire pier system results in a total labor cost of:

Accepted Answer

A)  $19,500. 
B)  $21,000. 
C)  $22,500. 
D)  $24,000. 
A)  $19,500. 
B)  $21,000. 
C)  $22,500. 
D)  $24,000.

Question 14

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

Accepted Answer

Direct costs are those clearly assigned

Question 15

The new artisanal greenhouse would require 700 empty wine bottles be embedded in a frame made of clay and straw. The builder, a man with too much time on his hands, had determined that each time a bottle was added to the structure it would take 30 minutes of labor at $7.50 per hour in the blazing sun. An activity-based costing of the entire artisanal greenhouse revealed that the total labor cost would be:

Accepted Answer

A)  $2,525. 
B)  $2,850. 
C)  $2,625. 
D)  $2,450. 
A)  $2,525. 
B)  $2,850. 
C)  $2,625. 
D)  $2,450.

Question 16

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

Accepted Answer

A)  Secretarial support 
B)  Utilities 
C)  Insurance 
D)  Depreciation 
A)  Secretarial support 
B)  Utilities 
C)  Insurance 
D)  Depreciation

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

What learning rate is being demonstrated if the first unit takes 25 hours and the seventh 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 96 percent 
C)  Less than 96 percent but greater than or equal to 95 percent 
D)  Less than 95 percent 
A)  Greater than or equal to 97 percent 
B)  Less than 97 percent but greater than or equal to 96 percent 
C)  Less than 96 percent but greater than or equal to 95 percent 
D)  Less than 95 percent

Question 19

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

Accepted Answer

A)  $23,750 
B)  $37,000 
C)  $45,050 
D)  $50,550 
A)  $23,750 
B)  $37,000 
C)  $45,050 
D)  $50,550

Question 20

If it takes 40 hours to complete the first unit and the company knows from experience that the learning rate should be 0.75, how fast can they be expected to finish all ten units?

Accepted Answer

A)  208.48 hours 
B)  213.52 hours 
C)  218.46 hours 
D)  223.54 hours 
A)  208.48 hours 
B)  213.52 hours 
C)  218.46 hours 
D)  223.54 hours

Contingency money is:

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

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

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

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

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.

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

The project management research in brief titled "Delusion and Deception Taking Place in Large Infrastructure Projects," describes three reasons that cost overruns occur in large infrastructure project work. Briefly describe these three reasons

What learning rate is being demonstrated if the first unit takes 25 hours and the third unit takes 24 hours to complete?

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.

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

The new bridge would require 14 piers to support it and it was known that each time a pier is sunk into the harbor it would take 30 man hours of labor at $50 per hour. An activity-based costing of the entire pier system results in a total labor cost of:

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

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

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

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

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

If it takes 40 hours to complete the first unit and the company knows from experience that the learning rate should be 0.75, how fast can they be expected to finish all ten units?

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

Advanced Topics in Planning and Scheduling: Agile and Critical Chain

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters

Exam 8: Cost Estimation and Budgeting

Contingency money is:

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

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

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

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

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.

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

The project management research in brief titled "Delusion and Deception Taking Place in Large Infrastructure Projects," describes three reasons that cost overruns occur in large infrastructure project work. Briefly describe these three reasons

What learning rate is being demonstrated if the first unit takes 25 hours and the third unit takes 24 hours to complete?

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.

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

The new bridge would require 14 piers to support it and it was known that each time a pier is sunk into the harbor it would take 30 man hours of labor at $50 per hour. An activity-based costing of the entire pier system results in a total labor cost of:

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

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

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

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

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

If it takes 40 hours to complete the first unit and the company knows from experience that the learning rate should be 0.75, how fast can they be expected to finish all ten units?

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

Advanced Topics in Planning and Scheduling: Agile and Critical Chain

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters