Question 1

Which of the following statements are true about cost estimating (circle all that are true):

Accepted Answer

A)  the expert opinion method is the same as the cost engineering method 
B)  the analogy method requires that a similar project or work task was done previously 
C)  the parametric method is an estimate based on a mathematical formula 
D)  the analogy method can take into account differences between projects 
A)  the expert opinion method is the same as the cost engineering method 
B)  the analogy method requires that a similar project or work task was done previously 
C)  the parametric method is an estimate based on a mathematical formula 
D)  the analogy method can take into account differences between projects B, C, D,

Question 2

The project planning and estimating process (circle all that apply):

Accepted Answer

A)  uses a top-down approach to disseminate information about project goals to lower levels 
B)  uses a bottom up approach to prepare and check labor and cost estimates 
C)  employs pricing units to decide on areas of work needed and to prepare labor hour estimates 
D)  relies upon work package supervisors to authorize when work packages should begin 
A)  uses a top-down approach to disseminate information about project goals to lower levels 
B)  uses a bottom up approach to prepare and check labor and cost estimates 
C)  employs pricing units to decide on areas of work needed and to prepare labor hour estimates 
D)  relies upon work package supervisors to authorize when work packages should begin A, B, C

Question 3

Statement: The majority of a system's life cycle costs are determined by decisions made in the conceptual and early design stages.

Accepted Answer

A) True 
 B)False  True

Question 4

If the actual cost turns to be $234,000, which of the following is the most accurate estimate:

Accepted Answer

A)  $236,000 
B)  $237,342 
C)  $233,500 
A)  $236,000 
B)  $237,342 
C)  $233,500

Question 5

Which method provides the least accuracy when estimating total project cost (circle on):

Accepted Answer

A)  expert opinion 
B)  analogy 
C)  parametric 
D)  cost engineering 
A)  expert opinion 
B)  analogy 
C)  parametric 
D)  cost engineering

Question 6

Statement: A time-phased budget shows project costs budgeted over time according to project schedules.

Accepted Answer

A) True 
 B)False

Question 7

Statement: The project cost estimate is derived from the project target cost.

Accepted Answer

A) True 
 B)False

Question 8

A contingency amount can be (circle one):

Accepted Answer

A)  applied to individual activities or work packages 
B)  applied to the project as a whole 
C)  continually increased to cover cost escalation 
D)  all of the above 
E)  a and b only. 
A)  applied to individual activities or work packages 
B)  applied to the project as a whole 
C)  continually increased to cover cost escalation 
D)  all of the above 
E)  a and b only.

Question 9

The major problem with using traditional budgets for projects is that they:

Accepted Answer

A)  are annual in nature 
B)  are usually divided into functional areas 
C)  focus on project objectives 
D)  all of the above 
E)  a and b only 
A)  are annual in nature 
B)  are usually divided into functional areas 
C)  focus on project objectives 
D)  all of the above 
E)  a and b only

Question 10

Statement: The feasible budget region is developed by looking at the difference between the project cost profile using early start times and the profile using late start times.

Accepted Answer

A) True 
 B)False

Question 11

Statement: Life cycle costs are the same as project costs.

Accepted Answer

A) True 
 B)False

Question 12

The estimate providing the best accuracy for total project cost comes from (circle one):

Accepted Answer

A)  looking at the project as a whole 
B)  combining estimates from all the work packages 
C)  looking at the cost of similar, completed projects 
D)  the cost constraint specified by the customer. 
A)  looking at the project as a whole 
B)  combining estimates from all the work packages 
C)  looking at the cost of similar, completed projects 
D)  the cost constraint specified by the customer.

Question 13

Statement: The parametric method of cost estimating can be combined with the analogy method.

Accepted Answer

A) True 
 B)False

Question 14

Statement: In general, high precision in an estimate is more important than high accuracy.

Accepted Answer

A) True 
 B)False

Question 15

Which method relies on formulae and tables to estimate project costs (circle on):

Accepted Answer

A)  expert opinion 
B)  analogy 
C)  parametric 
D)  cost engineering 
A)  expert opinion 
B)  analogy 
C)  parametric 
D)  cost engineering

Question 16

Statement: The net present worth of the project derived from project expenses can be increased by delaying the start of project activities.

Accepted Answer

A) True 
 B)False

Question 17

Statement: When we speak of recurring costs, we usually associate these costs with one-of-kind or first-of-a-kind items.

Accepted Answer

A) True 
 B)False

Question 18

Statement: If a cost estimate comes up too high, a good way to reduce it is to uniformly cut costs by a certain percentage for everything on the project.

Accepted Answer

A) True 
 B)False

Question 19

Statement: Generally the amount needed in the management reserve should decrease as the project progress.

Accepted Answer

A) True 
 B)False

Question 20

Statement: The process of breaking the project into work packages through the WBS has no relevancy to cost estimating.

Accepted Answer

A) True 
 B)False

Which of the following statements are true about cost estimating (circle all that are true):

The project planning and estimating process (circle all that apply):

Statement: The majority of a system's life cycle costs are determined by decisions made in the conceptual and early design stages.

If the actual cost turns to be $234,000, which of the following is the most accurate estimate:

Which method provides the least accuracy when estimating total project cost (circle on):

Statement: A time-phased budget shows project costs budgeted over time according to project schedules.

Statement: The project cost estimate is derived from the project target cost.

A contingency amount can be (circle one):

The major problem with using traditional budgets for projects is that they:

Statement: The feasible budget region is developed by looking at the difference between the project cost profile using early start times and the profile using late start times.

Statement: Life cycle costs are the same as project costs.

The estimate providing the best accuracy for total project cost comes from (circle one):

Statement: The parametric method of cost estimating can be combined with the analogy method.

Statement: In general, high precision in an estimate is more important than high accuracy.

Which method relies on formulae and tables to estimate project costs (circle on):

Statement: The net present worth of the project derived from project expenses can be increased by delaying the start of project activities.

Statement: When we speak of recurring costs, we usually associate these costs with one-of-kind or first-of-a-kind items.

Statement: If a cost estimate comes up too high, a good way to reduce it is to uniformly cut costs by a certain percentage for everything on the project.

Statement: Generally the amount needed in the management reserve should decrease as the project progress.

Statement: The process of breaking the project into work packages through the WBS has no relevancy to cost estimating.

What Is Project Management

Systems Approach

Project Life Cycle and Project Conception

Project Definition and System Definition

Project Execution and Closeout

Basic Project Planning Techniques

Project Schedule Planning and Networks

Advanced Project Network Analysis and Scheduling

Project Quality Management

Project Risk Management

Project Procurement Management and Contracting

Project Monitoring and Control

Agile Project Management and Lean

Project Organizational Structure and Integration

Project Roles and Stakeholders

Leadership, Teamwork, and Conflict

Meta-Management of Projects and Program Management

Project Selection and Portfolio Management

International Project Management

Filters

Exam 9: Cost Estimating and Budgeting

Which of the following statements are true about cost estimating (circle all that are true):

The project planning and estimating process (circle all that apply):

Statement: The majority of a system's life cycle costs are determined by decisions made in the conceptual and early design stages.

If the actual cost turns to be $234,000, which of the following is the most accurate estimate:

Which method provides the least accuracy when estimating total project cost (circle on):

Statement: A time-phased budget shows project costs budgeted over time according to project schedules.

Statement: The project cost estimate is derived from the project target cost.

A contingency amount can be (circle one):

The major problem with using traditional budgets for projects is that they:

Statement: The feasible budget region is developed by looking at the difference between the project cost profile using early start times and the profile using late start times.

Statement: Life cycle costs are the same as project costs.

The estimate providing the best accuracy for total project cost comes from (circle one):

Statement: The parametric method of cost estimating can be combined with the analogy method.

Statement: In general, high precision in an estimate is more important than high accuracy.

Which method relies on formulae and tables to estimate project costs (circle on):

Statement: The net present worth of the project derived from project expenses can be increased by delaying the start of project activities.

Statement: When we speak of recurring costs, we usually associate these costs with one-of-kind or first-of-a-kind items.

Statement: If a cost estimate comes up too high, a good way to reduce it is to uniformly cut costs by a certain percentage for everything on the project.

Statement: Generally the amount needed in the management reserve should decrease as the project progress.

Statement: The process of breaking the project into work packages through the WBS has no relevancy to cost estimating.

What Is Project Management

Systems Approach

Project Life Cycle and Project Conception

Project Definition and System Definition

Project Execution and Closeout

Basic Project Planning Techniques

Project Schedule Planning and Networks

Advanced Project Network Analysis and Scheduling

Project Quality Management

Project Risk Management

Project Procurement Management and Contracting

Project Monitoring and Control

Agile Project Management and Lean

Project Organizational Structure and Integration

Project Roles and Stakeholders

Leadership, Teamwork, and Conflict

Meta-Management of Projects and Program Management

Project Selection and Portfolio Management

International Project Management

Filters