Exam 10: Budgeting Projects

What type of cost is incurred when a project must be conducted faster than normal,and overtime for workers and / or extra charges for rapid delivery from suppliers are necessary? 

Figure 9-1 Time-phased budget -Consider the time-phased budget presented in Figure 9-1.What is the cumulative project budget through the end of April?​ 

Activity based costing allocates overhead (indirect costs)to fixed costs based upon four different types of drivers.Which of the following is one of the cost drivers that serves as a basis of cost allocation?​ 

The project scope does not come into play when considering fixed and variable cost choices.

Both normal and special cause variation add to project cost and need to be considered by project managers.

Projects often include indirect costs that are necessary to keep the organization running,but are not associated with one specific project.Which of the following items are most typically considered to be indirect costs?​ 

Fixed costs remain the same regardless of the size or volume of work,while variable costs vary directly with volume of use.

On small projects,the cost management plan may be as simple as ensuring accurate estimates are made,securing the funding,and developing cost reporting procedures to ensure that the money is spent correctly.

The process of developing an approximation of monetary resources needed to complete project activities is known as:​ 

Project managers should not lie to themselves or others regarding project costs.

A contingency reserve is money assigned to the project and allocated for identified risks for which contingent responses are developed.

Vendor bid analysis is used to determine whether the price being asked by the vendors appears to be reasonable.

Events discovered during Identify Risks that may or may not occur are often categorized as: 

Which estimating technique uses a statistical relationship between historical data and other variables (e.g.,square footage in construction,lines of code in software development)to calculate an estimate for scope,cost and duration? 

The documentation of a project cost estimate generally requires substantial supporting detail to include all of these EXCEPT:​ 

The _________is the approved budget,usually in a time distribution format,that is used to estimate,monitor,and control the overall cost performance of the project.

The component of the project management plan that describes how project costs will be planned,structured and controlled is called the project financial plan.

Plan Cost Management is the process to determine how to plan,estimate,and control project costs.

"Unknown unknowns" are unexpected events which can occur when the project is underway.All of the following accurately describe an implication associated with unknown unknowns EXCEPT: 

Generally,parametric estimating requires less information and time than analogous estimating.