Question 1

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

Accepted Answer

A)  Taylor's Theorem. 
B)  Pinto's Postulate. 
C)  Murphy's Law. 
D)  The Pareto Principle. 
A)  Taylor's Theorem. 
B)  Pinto's Postulate. 
C)  Murphy's Law. 
D)  The Pareto Principle.

Question 2

What are function points and how do they work?

Accepted Answer

Function points are a standard unit of m

Question 3

A normal cost is incurred when:

Accepted Answer

A)  Overtime is used more than originally planned. 
B)  Shipments are expedited. 
C)  Additional temporary workers are brought on site. 
D)  The aggressive baseline plan is adhered to. 
A)  Overtime is used more than originally planned. 
B)  Shipments are expedited. 
C)  Additional temporary workers are brought on site. 
D)  The aggressive baseline plan is adhered to.

Question 4

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

Accepted Answer

A)  Advertising 
B)  Shipping 
C)  Sales commissions 
D)  Taxes 
A)  Advertising 
B)  Shipping 
C)  Sales commissions 
D)  Taxes

Question 5

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 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

Learning curve theory says that a task c

Question 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

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

Accepted Answer

A)  Time-phased budget. 
B)  Chronic budget. 
C)  Temporal budget. 
D)  Calendar budget. 
A)  Time-phased budget. 
B)  Chronic budget. 
C)  Temporal budget. 
D)  Calendar budget.

Question 12

Unplanned costs incurred when steps are taken to speed up a project's completion are called:

Accepted Answer

A)  Expedited costs. 
B)  Accelerated costs. 
C)  Pass-through costs. 
D)  Normal costs. 
A)  Expedited costs. 
B)  Accelerated costs. 
C)  Pass-through costs. 
D)  Normal costs.

Question 13

Which of these is typically a nonrecurring cost?

Accepted Answer

A)  Site study 
B)  Labor 
C)  Material 
D)  Sales 
A)  Site study 
B)  Labor 
C)  Material 
D)  Sales

Question 14

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

Accepted Answer

A)  $37,250 
B)  $82,050 
C)  $41,000 
D)  $45,050 
A)  $37,250 
B)  $82,050 
C)  $41,000 
D)  $45,050

Question 15

What are four major categories of costs? Provide descriptions for each category.

Accepted Answer

Some of the more common project costs in

Question 16

Contingency money is:

Accepted Answer

A)  The money that must be received before any project work can begin. 
B)  Money that is spent first to lock-in all contract guarantees. 
C)  Not usually a part of the activity-based costing process. 
D)  Valued at a higher rate than non-contingency money when determining project costs. 
A)  The money that must be received before any project work can begin. 
B)  Money that is spent first to lock-in all contract guarantees. 
C)  Not usually a part of the activity-based costing process. 
D)  Valued at a higher rate than non-contingency money when determining project costs.

Question 17

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

Accepted Answer

A)  Leased capital equipment. 
B)  Salaries. 
C)  Materials. 
D)  Health insurance. 
A)  Leased capital equipment. 
B)  Salaries. 
C)  Materials. 
D)  Health insurance.

Question 18

Which of these estimates should be the most accurate?

Accepted Answer

A)  Parametric 
B)  Definitive 
C)  Comparative 
D)  Order of magnitude 
A)  Parametric 
B)  Definitive 
C)  Comparative 
D)  Order of magnitude

Question 19

The order of magnitude cost estimate is used when:

Accepted Answer

A)  Ballpark estimates are not considered accurate enough. 
B)  Historical data are readily available. 
C)  Information or time is scarce. 
D)  Parametric estimation has already been performed. 
A)  Ballpark estimates are not considered accurate enough. 
B)  Historical data are readily available. 
C)  Information or time is scarce. 
D)  Parametric estimation has already been performed.

Question 20

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

Accepted Answer

A) True 
 B)False

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

What are function points and how do they work?

A normal cost is incurred when:

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

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

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

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

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:

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

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

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

Unplanned costs incurred when steps are taken to speed up a project's completion are called:

Which of these is typically a nonrecurring cost?

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

What are four major categories of costs? Provide descriptions for each category.

Contingency money is:

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

Which of these estimates should be the most accurate?

The order of magnitude cost estimate is used when:

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

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

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

What are function points and how do they work?

A normal cost is incurred when:

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

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

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

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

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:

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

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

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

Unplanned costs incurred when steps are taken to speed up a project's completion are called:

Which of these is typically a nonrecurring cost?

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

What are four major categories of costs? Provide descriptions for each category.

Contingency money is:

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

Which of these estimates should be the most accurate?

The order of magnitude cost estimate is used when:

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

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