Exam 5: Estimating Project Times and Costs

"The best way to improve estimates is to collect and archive data on past project estimates and actuals." Agree or disagree and support your answer.

The information necessary to conduct a bottom-up estimate of project time and costs starts with the ________.

The cost to prepare bottom-up estimates will typically run how much more than the costs to prepare the top-down estimates?

Under what conditions would the bottom-up approach to estimating project times and costs be the best choice?

Ed is looking over the actual results of projects and comparing them to what was estimated.He notices that projects that took six months or longer to complete were noticeably more off the estimates.Which of the following factors is he recognizing?

Phase estimating is used when a project cannot be rigorously defined because of the uncertainty of design or the final product.

Estimating the total cost of a house by multiplying the total square feet by a cost per square foot is an example of the apportion method of estimating costs.

Costs that are not directly related to a specific project, such as advertising, accounting, and senior management, are classified as ____________.

The ________ factor in estimating project times and costs can introduce errors due to staff turnover, the skills of the participants, and whether the team members have worked with each other on previous projects.

Which of the following would be considered a direct project cost?

Organization culture can significantly influence project time and cost estimates.

The tendency to over-estimate project time and cost in order to improve the likelihood of meeting the estimates is known as the ________ factor.

General and Administrative costs are usually allocated as a percent of the total of a direct cost such as labor, materials, or equipment.

The cost to prepare a bottom-up budget will typically run ________ percent of the total project cost.

As long as everyone in a project adds just a little padding to reduce risk, the project duration and costs are probably overstated by a small amount.

Janet is forecasting how much money her department needs to support a new project.She estimates that two people and $25,000 in expenses will cover her needs.Because management typically insists on reducing forecasts by 20 percent, she increases her estimates to allow for that reduction.Which of the following factors is illustrated in this situation?

The function point method of time and cost estimating is best applied to projects that have large, complex physical deliverables, such as a bridge or building.

At the strategic level top-down estimating methods are used to evaluate a project proposal.

Estimating the total cost of a project by multiplying each major function by a complexity factor is an example of the apportion method of estimating costs.

Using the _______ method of forecasting project time and costs is the preferred method for situations involving strategic decision-making, projects with a high degree of uncertainty, and projects with an unstable scope.