Question 1

The first unit requires 10 hours to complete. If the industry uses an 80 percent learning rate, how long should the third unit take?

Accepted Answer

A)  10 hours 
B)  9 hours 
C)  8 hours 
D)  7.02 hours 
E)  6.40 hours 
A)  10 hours 
B)  9 hours 
C)  8 hours 
D)  7.02 hours 
E)  6.40 hours

Question 2

Because project budgeting is for a special case and the organization's budgeting process is for routine work, the project manager need not be familiar with the organization's accounting system.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not true regarding top-down budgeting?

Accepted Answer

A)  It is based on the collective judgments of top and middle managers. 
B)  Overall project costs are estimated by top and middle managers and then passed on to the next lower level. 
C)  The overall budget cost is generally not very accurate. 
D)  Overlooking small but important tasks can lead to a serious budgetary problem. 
E)  All of the above are true concerning top-down budgeting. 
A)  It is based on the collective judgments of top and middle managers. 
B)  Overall project costs are estimated by top and middle managers and then passed on to the next lower level. 
C)  The overall budget cost is generally not very accurate. 
D)  Overlooking small but important tasks can lead to a serious budgetary problem. 
E)  All of the above are true concerning top-down budgeting.

Question 5

List the steps in performing FMEA.

Accepted Answer

Failure Mode and Effects Analysis (FMEA)

Question 6

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 7

Scenario analysis is not a popular technique for identifying risks.

Accepted Answer

A) True 
 B)False

Question 8

What is the Game Theory approach?

Accepted Answer

The Game Theory approach is a framework

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Learning curve theory states that performance of labor per unit will improve by a fixed percentage each time production doubles.

Accepted Answer

A) True 
 B)False

Question 11

There is no way other than guessing to estimate the impact of learning on a project's task.

Accepted Answer

A) True 
 B)False

Question 12

A budget is a plan for allocating resources.

Accepted Answer

A) True 
 B)False

Question 13

Budget cuts are usually disastrous to an exponential life-cycle project.

Accepted Answer

A) True 
 B)False

Question 14

Why is it necessary to consider the learning curve of resources on a project?

Accepted Answer

A)  to estimate labor costs properly 
B)  to improve project team morale 
C)  because it always takes less time to do a task after someone has done it a few times 
D)  collective bargaining contracts require it 
E)  All of the above 
A)  to estimate labor costs properly 
B)  to improve project team morale 
C)  because it always takes less time to do a task after someone has done it a few times 
D)  collective bargaining contracts require it 
E)  All of the above

Question 15

Overhead and indirect charges should not be assigned to a project.

Accepted Answer

A) True 
 B)False

Question 16

Top-down budgeting typically results in better acceptance of the budget.

Accepted Answer

A) True 
 B)False

Question 17

The name given to the budget process that aggregates income and expenditures across projects is:

Accepted Answer

A)  activity-oriented budget 
B)  top-down budget 
C)  bottom-up budget 
D)  program-oriented budget 
E)  activity-based costing 
A)  activity-oriented budget 
B)  top-down budget 
C)  bottom-up budget 
D)  program-oriented budget 
E)  activity-based costing

Question 18

Briefly contrast the three different perspectives cost can be viewed from.

Accepted Answer

The answer of Briefly contrast the three different perspectives cost...

Question 19

For projects with S-shaped life cycles, top-down budgeting is most likely unacceptable.

Accepted Answer

A) True 
 B)False

Question 20

Project budget is nothing more than the project plan, based on the WBS, expressed in monetary terms.

Accepted Answer

A) True 
 B)False

The first unit requires 10 hours to complete. If the industry uses an 80 percent learning rate, how long should the third unit take?

Because project budgeting is for a special case and the organization's budgeting process is for routine work, the project manager need not be familiar with the organization's accounting system.

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

Which of the following is not true regarding top-down budgeting?

List the steps in performing FMEA.

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

Scenario analysis is not a popular technique for identifying risks.

What is the Game Theory approach?

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

Learning curve theory states that performance of labor per unit will improve by a fixed percentage each time production doubles.

There is no way other than guessing to estimate the impact of learning on a project's task.

A budget is a plan for allocating resources.

Budget cuts are usually disastrous to an exponential life-cycle project.

Why is it necessary to consider the learning curve of resources on a project?

Overhead and indirect charges should not be assigned to a project.

Top-down budgeting typically results in better acceptance of the budget.

The name given to the budget process that aggregates income and expenditures across projects is:

Briefly contrast the three different perspectives cost can be viewed from.

For projects with S-shaped life cycles, top-down budgeting is most likely unacceptable.

Project budget is nothing more than the project plan, based on the WBS, expressed in monetary terms.

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 first unit requires 10 hours to complete. If the industry uses an 80 percent learning rate, how long should the third unit take?

Because project budgeting is for a special case and the organization's budgeting process is for routine work, the project manager need not be familiar with the organization's accounting system.

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

Which of the following is not true regarding top-down budgeting?

List the steps in performing FMEA.

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

Scenario analysis is not a popular technique for identifying risks.

What is the Game Theory approach?

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

Learning curve theory states that performance of labor per unit will improve by a fixed percentage each time production doubles.

There is no way other than guessing to estimate the impact of learning on a project's task.

A budget is a plan for allocating resources.

Budget cuts are usually disastrous to an exponential life-cycle project.

Why is it necessary to consider the learning curve of resources on a project?

Overhead and indirect charges should not be assigned to a project.

Top-down budgeting typically results in better acceptance of the budget.

The name given to the budget process that aggregates income and expenditures across projects is:

Briefly contrast the three different perspectives cost can be viewed from.

For projects with S-shaped life cycles, top-down budgeting is most likely unacceptable.

Project budget is nothing more than the project plan, based on the WBS, expressed in monetary terms.

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