Question 1

The result of game theory analysis is a Risk Priority Number.

Accepted Answer

A) True 
 B)False  False

Question 2

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  False

Question 3

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

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following is not true regarding bottom-up budgeting?

Accepted Answer

A)  The method tends to be inaccurate in the detailed tasks. 
B)  The WBS is used to identify the elemental tasks. 
C)  It is rarely used. 
D)  It is a good managerial training technique. 
E)  All of the above are true concerning top-down budgeting. 
A)  The method tends to be inaccurate in the detailed tasks. 
B)  The WBS is used to identify the elemental tasks. 
C)  It is rarely used. 
D)  It is a good managerial training technique. 
E)  All of the above are true concerning top-down budgeting.

Question 5

Activity budgets show expenses by task and expected time period of the expenditure.

Accepted Answer

A) True 
 B)False

Question 6

Explain how budget uncertainly changes as the project progresses.

Accepted Answer

Budget uncertainty in a project typicall

Question 7

Organizational tradition has little or no impact on the firm's project budgeting.

Accepted Answer

A) True 
 B)False

Question 8

Individual elements of project budgets are generally more accurate in bottom-up budgeting.

Accepted Answer

A) True 
 B)False

Question 9

Random errors will tend to cancel out.

Accepted Answer

A) True 
 B)False

Question 10

Organizations can use both top-down and bottom-up budgeting.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

The answer of Briefly explain how learning curves can help...

Question 12

Expected value is a tool for risk analysis.

Accepted Answer

A) True 
 B)False

Question 13

Risk management includes what three areas?

Accepted Answer

The answer of Risk management includes what three areas?...

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

A disaster is an event that may have an extraordinarily high cost if it occurs, but has a very low probability of occurring.

Accepted Answer

A) True 
 B)False

Question 16

Contrast activity versus program budgeting.

Accepted Answer

Activity budgeting and program budgeting

Question 17

The project manager recognizes an expense when an invoice is actually paid.

Accepted Answer

A) True 
 B)False

Question 18

There is a 30 percent chance that a new product development project will result in sales of $500,000 and a 70 percent chance that the project will result in sales of $100,000. What is the expected value of this project?

Accepted Answer

A)  $220,000 
B)  $240,000 
C)  $300,000 
D)  $320,000 
E)  $340,000 
A)  $220,000 
B)  $240,000 
C)  $300,000 
D)  $320,000 
E)  $340,000

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

A requirement of top-down budgeting is:

Accepted Answer

A)  involvement of the project team 
B)  estimating the detailed level of the project's tasks 
C)  applying the learning curve to labor time estimates 
D)  all of the above 
E)  none of the above 
A)  involvement of the project team 
B)  estimating the detailed level of the project's tasks 
C)  applying the learning curve to labor time estimates 
D)  all of the above 
E)  none of the above

The result of game theory analysis is a Risk Priority Number.

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

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

Which of the following is not true regarding bottom-up budgeting?

Activity budgets show expenses by task and expected time period of the expenditure.

Explain how budget uncertainly changes as the project progresses.

Organizational tradition has little or no impact on the firm's project budgeting.

Individual elements of project budgets are generally more accurate in bottom-up budgeting.

Random errors will tend to cancel out.

Organizations can use both top-down and bottom-up budgeting.

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

Expected value is a tool for risk analysis.

Risk management includes what three areas?

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

A disaster is an event that may have an extraordinarily high cost if it occurs, but has a very low probability of occurring.

Contrast activity versus program budgeting.

The project manager recognizes an expense when an invoice is actually paid.

There is a 30 percent chance that a new product development project will result in sales of $500,000 and a 70 percent chance that the project will result in sales of $100,000. What is the expected value of this project?

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

A requirement of top-down budgeting is:

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

The result of game theory analysis is a Risk Priority Number.

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

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

Which of the following is not true regarding bottom-up budgeting?

Activity budgets show expenses by task and expected time period of the expenditure.

Explain how budget uncertainly changes as the project progresses.

Organizational tradition has little or no impact on the firm's project budgeting.

Individual elements of project budgets are generally more accurate in bottom-up budgeting.

Random errors will tend to cancel out.

Organizations can use both top-down and bottom-up budgeting.

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

Expected value is a tool for risk analysis.

Risk management includes what three areas?

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

A disaster is an event that may have an extraordinarily high cost if it occurs, but has a very low probability of occurring.

Contrast activity versus program budgeting.

The project manager recognizes an expense when an invoice is actually paid.

There is a 30 percent chance that a new product development project will result in sales of $500,000 and a 70 percent chance that the project will result in sales of $100,000. What is the expected value of this project?

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

A requirement of top-down budgeting is:

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