Question 1

Random errors will tend to cancel out.

Accepted Answer

A) True 
 B)False  True

Question 2

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. C

Question 3

Which of the following is most closely associated with FMEA?

Accepted Answer

A)  risk priority number 
B)  game theory 
C)  expected value 
D)  simulation 
E)  program budgeting 
A)  risk priority number 
B)  game theory 
C)  expected value 
D)  simulation 
E)  program budgeting A

Question 4

A problem with bottom-up budgeting is:

Accepted Answer

A)  individual team members overstate their budget needs 
B)  lack of involvement from the project team 
C)  underestimating the project task's budget requirements 
D)  all of the above 
E)  none of the above 
A)  individual team members overstate their budget needs 
B)  lack of involvement from the project team 
C)  underestimating the project task's budget requirements 
D)  all of the above 
E)  none of the above

Question 5

The project's budget is merely the sum of its resource costs.

Accepted Answer

A) True 
 B)False

Question 6

A task is expected to take 20 hours of labor at $25 per hour.The required material cost is $500 and the organization charges 30% of direct labor for overhead.The total task cost is:

Accepted Answer

A)  $500 
B)  $1,150 
C)  $1,250 
D)  $1,300 
E)  $1,500 
A)  $500 
B)  $1,150 
C)  $1,250 
D)  $1,300 
E)  $1,500

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Learning curve theory states that performance of labor per unit will improve by a percentage each time production increases by the same percentage.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The project budget acts as a project control.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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 13

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 14

Which of the following is NOT a sub-process associated with risk management?

Accepted Answer

A)  risk identification 
B)  risk measurement 
C)  qualitative risk analysis 
D)  quantitative risk analysis 
E)  risk response planning 
A)  risk identification 
B)  risk measurement 
C)  qualitative risk analysis 
D)  quantitative risk analysis 
E)  risk response planning

Question 15

Calculating the Tracking Signal can not only reveal if estimates are biased,it can also tell how severe the bias is.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Learning curves can be used to help improve cost estimates.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Traditional organizational budgets are task-oriented,rather than activity-oriented.

Accepted Answer

A) True 
 B)False

Random errors will tend to cancel out.

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

Which of the following is most closely associated with FMEA?

A problem with bottom-up budgeting is:

The project's budget is merely the sum of its resource costs.

A task is expected to take 20 hours of labor at $25 per hour.The required material cost is $500 and the organization charges 30% of direct labor for overhead.The total task cost is:

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

Learning curve theory states that performance of labor per unit will improve by a percentage each time production increases by the same percentage.

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

The project budget acts as a project control.

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

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

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

Which of the following is NOT a sub-process associated with risk management?

Calculating the Tracking Signal can not only reveal if estimates are biased,it can also tell how severe the bias is.

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

Learning curves can be used to help improve cost estimates.

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

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

Traditional organizational budgets are task-oriented,rather than activity-oriented.

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

Random errors will tend to cancel out.

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

Which of the following is most closely associated with FMEA?

A problem with bottom-up budgeting is:

The project's budget is merely the sum of its resource costs.

A task is expected to take 20 hours of labor at $25 per hour.The required material cost is $500 and the organization charges 30% of direct labor for overhead.The total task cost is:

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

Learning curve theory states that performance of labor per unit will improve by a percentage each time production increases by the same percentage.

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

The project budget acts as a project control.

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

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

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

Which of the following is NOT a sub-process associated with risk management?

Calculating the Tracking Signal can not only reveal if estimates are biased,it can also tell how severe the bias is.

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

Learning curves can be used to help improve cost estimates.

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

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

Traditional organizational budgets are task-oriented,rather than activity-oriented.

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