Question 1

By very careful planning, a project manager can do away with cost uncertainty.

Accepted Answer

A) True 
 B)False  False

Question 2

Budgeting a project is often more difficult than budgeting routine activities.

Accepted Answer

A) True 
 B)False  True

Question 3

Susan, a project manager, uses a work breakdown structure to list the elemental tasks of a project. She then asks the team members responsible for each of these tasks to give her an estimate of the cost required to accomplish each task. Next, she adds indirect costs such as administrative costs and a reserve for contingencies to the total task cost and files her budget with the accounting department. In this scenario, Susan is using _____.

Accepted Answer

A)  top-down budgeting 
B)  bottom-up budgeting 
C)  agile project budgeting 
D)  dynamic matrix budgeting 
E)  lateral budgeting 
A)  top-down budgeting 
B)  bottom-up budgeting 
C)  agile project budgeting 
D)  dynamic matrix budgeting 
E)  lateral budgeting B

Question 4

Risk management includes what three areas?

Accepted Answer

In spite of the care and effort expended

Question 5

Explain how you would use the shape of a project's life cycle to resolve budget conflicts between a superior and subordinate.

Accepted Answer

If a project's life cycle is S-shaped, t

Question 6

Victoria, an artisan who produces handcrafted furniture, has to carve six ornate chairs to go around a table. It takes her 10 hours to complete the first chair. She estimates that her learning rate is 80 percent. Given this information, Victoria should be able to make the second chair in _____.

Accepted Answer

A)  8 hours 
B)  6.3 hours 
C)  5.12 hours 
D)  3 hours 
E)  2.12 hours 
A)  8 hours 
B)  6.3 hours 
C)  5.12 hours 
D)  3 hours 
E)  2.12 hours

Question 7

A budget is a plan for allocating resources to project activities.

Accepted Answer

A) True 
 B)False

Question 8

Explain the concept of Brook's "mythical man month."

Accepted Answer

Brook's "mythical man-month" effect, whi

Question 9

William, a project manager, needs to prepare the budget for a new software development project. To do so, he takes inputs from other managers who have worked on similar projects in the past. After estimating the overall project cost, he gives the estimates to his team members so that they can split up the cost of each individual task involved in producing the required deliverable. In this scenario, William is using _____.

Accepted Answer

A)  top-down budgeting 
B)  bottom-up budgeting 
C)  agile project budgeting 
D)  dynamic matrix budgeting 
E)  lateral budgeting 
A)  top-down budgeting 
B)  bottom-up budgeting 
C)  agile project budgeting 
D)  dynamic matrix budgeting 
E)  lateral budgeting

Question 10

Stefan, a project manager in a publishing company, has undertaken a project to translate a book in French into English and to sell a million copies. He estimates that the cost of the materials will be $6000 and the project will require 30 hours of labor at $50 per hour. If the overheads for the project are estimated at a rate of 50 percent of the labor costs, the total cost of the project will be:

Accepted Answer

A)  $1080. 
B)  $1,500. 
C)  $4,500. 
D)  $7,800. 
E)  $8,250. 
A)  $1080. 
B)  $1,500. 
C)  $4,500. 
D)  $7,800. 
E)  $8,250.

Question 11

Mechanical tasks typically have higher learning rates than more mental tasks.

Accepted Answer

A) True 
 B)False

Question 12

Rachel, a project manager, has undertaken a project to build a wall around a compound. She estimates that the cost of materials will be $520 and labor costs will be $10 for 20 hours. If the overheads for this project are 50 percent of the labor and material costs, the total cost will be:

Accepted Answer

A)  $1080. 
B)  $1,560. 
C)  $880. 
D)  $780. 
E)  $960. 
A)  $1080. 
B)  $1,560. 
C)  $880. 
D)  $780. 
E)  $960.

Question 13

Which of the following statements is not true about a firm and its project accounting?

Accepted Answer

A)  each firm has its own rules with regard to the allocation of overhead 
B)  most firms must comply with the Sarbanes-Oxley Act 
C)  the project manager must rely on the accounting department to make special allowances for his/her project 
D)  most firms have their own accounting idiosyncrasies 
E)  unexpected charges may suddenly appear when the PM least expects it 
A)  each firm has its own rules with regard to the allocation of overhead 
B)  most firms must comply with the Sarbanes-Oxley Act 
C)  the project manager must rely on the accounting department to make special allowances for his/her project 
D)  most firms have their own accounting idiosyncrasies 
E)  unexpected charges may suddenly appear when the PM least expects it

Question 14

IT projects tend to have the highest record for meeting their goals of all major project types.

Accepted Answer

A) True 
 B)False

Question 15

Briefly explain how learning curves can help improve the cost estimating process.

Accepted Answer

The use of learning curves in project ma

Question 16

The PMI does not devote much coverage to risk management in the PMBOK

Accepted Answer

A) True 
 B)False

Question 17

A key advantage of top-down budgeting is that the overall budget costs can be estimated quite accurately.

Accepted Answer

A) True 
 B)False

Question 18

Contingency planning is generally begun at that point in time when an organization finds itself in serious financial trouble.

Accepted Answer

A) True 
 B)False

Question 19

As a project unfolds, the cost uncertainty increases as the project moves towards completion.

Accepted Answer

A) True 
 B)False

Question 20

The more difficult the task, the higher the learning rate.

Accepted Answer

A) True 
 B)False

By very careful planning, a project manager can do away with cost uncertainty.

Budgeting a project is often more difficult than budgeting routine activities.

Risk management includes what three areas?

Explain how you would use the shape of a project's life cycle to resolve budget conflicts between a superior and subordinate.

Victoria, an artisan who produces handcrafted furniture, has to carve six ornate chairs to go around a table. It takes her 10 hours to complete the first chair. She estimates that her learning rate is 80 percent. Given this information, Victoria should be able to make the second chair in _____.

A budget is a plan for allocating resources to project activities.

Explain the concept of Brook's "mythical man month."

Mechanical tasks typically have higher learning rates than more mental tasks.

Rachel, a project manager, has undertaken a project to build a wall around a compound. She estimates that the cost of materials will be $520 and labor costs will be $10 for 20 hours. If the overheads for this project are 50 percent of the labor and material costs, the total cost will be:

Which of the following statements is not true about a firm and its project accounting?

IT projects tend to have the highest record for meeting their goals of all major project types.

Briefly explain how learning curves can help improve the cost estimating process.

The PMI does not devote much coverage to risk management in the PMBOK

A key advantage of top-down budgeting is that the overall budget costs can be estimated quite accurately.

Contingency planning is generally begun at that point in time when an organization finds itself in serious financial trouble.

As a project unfolds, the cost uncertainty increases as the project moves towards completion.

The more difficult the task, the higher the learning rate.

The World of Project Management

The Manager, the Organization, and the Team

Planning the Project

Scheduling the Project

Allocating Resources to the Project

Monitoring and Controlling the Project

Evaluating and Terminating the Project

Filters

Exam 4: Budgeting the Project

By very careful planning, a project manager can do away with cost uncertainty.

Budgeting a project is often more difficult than budgeting routine activities.

Risk management includes what three areas?

Explain how you would use the shape of a project's life cycle to resolve budget conflicts between a superior and subordinate.

Victoria, an artisan who produces handcrafted furniture, has to carve six ornate chairs to go around a table. It takes her 10 hours to complete the first chair. She estimates that her learning rate is 80 percent. Given this information, Victoria should be able to make the second chair in _____.

A budget is a plan for allocating resources to project activities.

Explain the concept of Brook's "mythical man month."

Mechanical tasks typically have higher learning rates than more mental tasks.

Rachel, a project manager, has undertaken a project to build a wall around a compound. She estimates that the cost of materials will be $520 and labor costs will be $10 for 20 hours. If the overheads for this project are 50 percent of the labor and material costs, the total cost will be:

Which of the following statements is not true about a firm and its project accounting?

IT projects tend to have the highest record for meeting their goals of all major project types.

Briefly explain how learning curves can help improve the cost estimating process.

The PMI does not devote much coverage to risk management in the PMBOK

A key advantage of top-down budgeting is that the overall budget costs can be estimated quite accurately.

Contingency planning is generally begun at that point in time when an organization finds itself in serious financial trouble.

As a project unfolds, the cost uncertainty increases as the project moves towards completion.

The more difficult the task, the higher the learning rate.

The World of Project Management

The Manager, the Organization, and the Team

Planning the Project

Scheduling the Project

Allocating Resources to the Project

Monitoring and Controlling the Project

Evaluating and Terminating the Project

Filters