Exam 8: Cost Estimation and Budgeting

Juan Valdez trades in his old donkeys for two new llamas in order to transport his mountain grown coffee to the marketplace.Llamas make excellent pack animals and are surefooted,so I should be able to spend more time harvesting and less time wrangling animals,Juan thought to himself as he led the two back to his mountain farm.Much to his dismay,the first time he tried to strap the bags of coffee beans to his new llamas they resisted by running away and when he got close,they spit copiously.However,he was persistent and methodical,and he noticed that things went a little better each day.The time it took to get the llamas loaded up is summarized in the table. Day Time () Day Time (min) 1 140 5 84 2 116 6 79 3 100 7 79 4 93 8 76 What learning rate is evident from the data? How long will it take to load up the llamas next month (on the 30th attempt)if the same learning pattern continues?

A plan that identifies the allocated resources,the project's goals,and the schedule that allows an organization to achieve those goals is:

Which of these estimates should be the most accurate?

A systems analyst is paid at the rate of $50/hour and will be needed for 40 hours.Her employer uses an overhead multiplier of 60% and does not factor in personal time.Her total direct labor cost should be billed at:

When their baby was ready to head off to college,the beleaguered parents pulled out the college folder from their file cabinet and added up the cost of putting their first child through college from 1995-2000.The mother whimpered as she factored in the rising cost of tuition,fees,books,and inflation by multiplying the total by 2.5.The father felt a searing pain go through his chest as he saw the total,knowing full well that their cost estimation approach,called:

Workers paid $15.00 per hour with an overhead charge of 1.45 and a personal time allowance of 1.15,have what total direct labor cost for an 8-hour work day?

Which worker's wages would constitute a direct cost for a construction project?

Which of these indirect costs is typically classified as a selling or administrative cost?

Which of these indirect costs is typically classified as an overhead cost?

Project cost estimates usually anticipate that resources will be available,that the weather will not be extreme,and that funding will materialize,creating what are called:

A budget that is created by starting with the work breakdown structure,determining costs for each work package,and then adding these costs together is:

Define learning curve theory and describe how learning curves are used in project management.

What is the total project budget in this time-phased budget? Activity Tuly August September October November RFP 34,721 Analysis 11,049 33,655 34,388 Design 33,718 34,474 26,759 36,328 Coding 7,713 34,905 40,244 Testing 40,916 896 Training 20,958 9,327 Roll-Out 8,186

Input is received from an organization's management to create a project budget in:

Describe any three reasons that cost overruns occur in project work.

What is the project budget for November in this time-phased budget? Activity Tuly August September October November RFP 34,721 Analysis 11,049 33,655 34,388 Design 33,718 34,474 26,759 36,328 Coding 7,713 34,905 40,244 Testing 40,916 896 Training 20,958 9,327 Roll-Out 8,186

The project plan is supported by:

Rank the four different types of cost estimates from most to least accurate and explain what the inputs are to each type.

What is the total amount budgeted for March in this time-phased budget? Activity January February March April Survey 8,000 Design 5,250 4,500 Dirt 6,700 Foundation 12,550 Framing 37,250 Plumb 7,800 Wire 5,500

You are probably looking at a bill for a variable cost when you are paying for: