Question 1

What are three benefits to the use of contingency funds?

Accepted Answer

Use of contingency funds is at first gla

Question 2

An order of magnitude estimate is usually more accurate than a ballpark estimate.

Accepted Answer

A) True 
 B)False

Question 3

Normal conditions,by definition,occur the vast majority of the time in project management.

Accepted Answer

A) True 
 B)False

Question 4

When asked to provide an estimate of an irrigation system,Pete looked from one end of the field to the other,licked a finger and held it in the air,squinted into the sun and said $25,000,give or take 30%.The technique employed for cost estimation is:

Accepted Answer

A)  Parametric. 
B)  Comparative. 
C)  Definitive. 
D)  Ballpark. 
A)  Parametric. 
B)  Comparative. 
C)  Definitive. 
D)  Ballpark.

Question 5

Contingency money is:

Accepted Answer

A)  Not formally in the project budget, but held in a separate company account for all projects. 
B)  Added to the project's budget following the identification of all project costs. 
C)  The first line item in any project budget at an amount dictated by company policy. 
D)  Not in the project's budget, but calculated and set aside once the project budget is completed. 
A)  Not formally in the project budget, but held in a separate company account for all projects. 
B)  Added to the project's budget following the identification of all project costs. 
C)  The first line item in any project budget at an amount dictated by company policy. 
D)  Not in the project's budget, but calculated and set aside once the project budget is completed.

Question 6

Poor initial scope development and work breakdown structure often creates cost overruns that are attributable to:

Accepted Answer

A)  Lack of definition. 
B)  Deliberate low initial estimates. 
C)  Unexpected technical difficulties. 
D)  External factors. 
A)  Lack of definition. 
B)  Deliberate low initial estimates. 
C)  Unexpected technical difficulties. 
D)  External factors.

Question 7

What is the total project budget for design in this time-phased budget? $$\begin{array} { | l | l | l | l | l | l | } 
\hline \text { Activity } & \text { Tuly } & \text { August } & \text { September October } & \text { November } \
\hline \text { RFP } & 34,721 & & & & \
\hline \text { Analysis } & 11,049 & 33,655 & 34,388 & & \
\hline \text { Design } & 33,718 & 34,474 & 26,759 & 36,328 & \
\hline \text { Coding } & & 7,713 & 34,905 & 40,244 & \
\hline \text { Testing } & & & & 40,916 & 896 \
\hline \text { Training } & & & & 20,958 & 9,327 \
\hline \text { Roll-Out } & & & & & 8,186 \
\hline
\end{array}$$

Accepted Answer

A)  $131,279 
B)  $155,330 
C)  $124,688 
D)  $146,983 
A)  $131,279 
B)  $155,330 
C)  $124,688 
D)  $146,983

Question 8

Which statement about the use of learning curves is BEST?

Accepted Answer

A)  Learning curve effects stay constant across projects. 
B)  A job that is substantially re-engineered will have no disruption of its learning curve. 
C)  It may be more likely to see learning curve effects in construction than in research and development. 
D)  Every worker performing an identical task will exhibit the same learning effect. 
A)  Learning curve effects stay constant across projects. 
B)  A job that is substantially re-engineered will have no disruption of its learning curve. 
C)  It may be more likely to see learning curve effects in construction than in research and development. 
D)  Every worker performing an identical task will exhibit the same learning effect.

Question 9

Whether it is the Boeing V-22 Osprey or a simple storm door installation for a do-it-yourselfer,nothing is ever completed as quickly or as cheaply as initial estimates due to:

Accepted Answer

A)  Lack of definition. 
B)  Low initial estimates. 
C)  Specification changes. 
D)  Unexpected technical difficulties. 
A)  Lack of definition. 
B)  Low initial estimates. 
C)  Specification changes. 
D)  Unexpected technical difficulties.

Question 10

The project management research in brief titled "Delusion and Deception Taking Place in Large Infrastructure Projects," describes three reasons that cost overruns occur in large infrastructure project work.Briefly describe these three reasons

Accepted Answer

In most cases,the causes of runaway cost

Question 11

Acme is exploring two locations for a new plant to supply product for a government contract.They dispatch a team of industrial engineers and cost estimators to the Minneapolis-St.Paul area of Minnesota and to Kennewick-Pasco-Richland area in Washington.After conducting some tests,the teams return with some unusual findings,the Minneapolis-St.Paul workers seem to obey classic learning effect rules; their learning rate is 80% and is based on a doubling of output.They are much slower than their counterparts at the other site; it is estimated that the first batch units they assemble will take them 700 hours.The workforce in the Kennewick-Pasco-Richland area is much faster; their first batch will take only 470 hours.Strangely,these workers also exhibit learning effects,but their learning is based on a tripling of output rather than the traditional doubling and their rate is 78%.How many batches must be made before Minneapolis-St.Paul's time falls below Kennewick-Pasco-Richland's?

Accepted Answer

The crossover point is just above the 64

Question 12

Which of these is typically a nonrecurring cost?

Accepted Answer

A)  Site study 
B)  Labor 
C)  Material 
D)  Sales 
A)  Site study 
B)  Labor 
C)  Material 
D)  Sales

Question 13

Which of the following is NOT contained in a typical time-phased budget?

Accepted Answer

A)  Total expenses for each activity 
B)  Total expenses for each time unit 
C)  Cumulative expenses for each time unit 
D)  Cumulative time for each expense 
A)  Total expenses for each activity 
B)  Total expenses for each time unit 
C)  Cumulative expenses for each time unit 
D)  Cumulative time for each expense

Question 14

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

Accepted Answer

A)  $96,052 
B)  $155,330 
C)  $152,927 
D)  $251,382 
A)  $96,052 
B)  $155,330 
C)  $152,927 
D)  $251,382

Question 15

Comparative estimates are more accurate than definitive estimates when applied to the same project.

Accepted Answer

A) True 
 B)False

Question 16

What are four major categories of costs? Provide descriptions for each category.

Accepted Answer

Some of the more common project costs in

Question 17

What is the total project budget in this time-phased budget? $$\begin{array} { | l | l | l | l | l | } 
\text { Activity } & \text { January } & \text { February } & \text { March } & \text { April } \
\hline \text { Survey } & 8,000 & & & \
\hline \text { Design } & 5,250 & 4,500 & & \
\hline \text { Dirt } & & 6,700 & & \
\hline \text { Foundation } & & 12,550 & & \
\hline \text { Framing } & & & 37,250 & \
\hline \text { Plumb } & & & 7,800 & \
\hline \text { Wire } & & & & 5,500 \
\hline
\end{array}$$

Accepted Answer

A)  $85,450 
B)  $87,550 
C)  $82,050 
D)  $86,550 
A)  $85,450 
B)  $87,550 
C)  $82,050 
D)  $86,550

Question 18

What are the major issues with cost estimation of software projects?

Accepted Answer

The software project industry has a very

Question 19

An advantage of top-down budgeting is:

Accepted Answer

A)  That top management estimates of project costs are often quite accurate, at least in aggregate. 
B)  An elimination of the friction between top and lower levels in the competition for budget money. 
C)  That projects are no longer a zero-sum game among lower level managers. 
D)  That top management budgets, by definition, cannot experience overruns. 
A)  That top management estimates of project costs are often quite accurate, at least in aggregate. 
B)  An elimination of the friction between top and lower levels in the competition for budget money. 
C)  That projects are no longer a zero-sum game among lower level managers. 
D)  That top management budgets, by definition, cannot experience overruns.

Question 20

An early warning signal for the potential of an overdrawn budget is created when:

Accepted Answer

A)  Activity-based costing cannot identify drivers. 
B)  A bottom-up budget never makes it up the chain of command. 
C)  Contingency funds are applied for. 
D)  A top-down process moves too quickly down to the functional managers. 
A)  Activity-based costing cannot identify drivers. 
B)  A bottom-up budget never makes it up the chain of command. 
C)  Contingency funds are applied for. 
D)  A top-down process moves too quickly down to the functional managers.

What are three benefits to the use of contingency funds?

An order of magnitude estimate is usually more accurate than a ballpark estimate.

Normal conditions,by definition,occur the vast majority of the time in project management.

When asked to provide an estimate of an irrigation system,Pete looked from one end of the field to the other,licked a finger and held it in the air,squinted into the sun and said $25,000,give or take 30%.The technique employed for cost estimation is:

Contingency money is:

Poor initial scope development and work breakdown structure often creates cost overruns that are attributable to:

What is the total project budget for design 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

Which statement about the use of learning curves is BEST?

Whether it is the Boeing V-22 Osprey or a simple storm door installation for a do-it-yourselfer,nothing is ever completed as quickly or as cheaply as initial estimates due to:

The project management research in brief titled "Delusion and Deception Taking Place in Large Infrastructure Projects," describes three reasons that cost overruns occur in large infrastructure project work.Briefly describe these three reasons

Which of these is typically a nonrecurring cost?

Which of the following is NOT contained in a typical time-phased budget?

What is the cumulative project budget for September 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

Comparative estimates are more accurate than definitive estimates when applied to the same project.

What are four major categories of costs? Provide descriptions for each category.

What is the total project budget 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

What are the major issues with cost estimation of software projects?

An advantage of top-down budgeting is:

An early warning signal for the potential of an overdrawn budget is created when:

Introduction: Why Project Management?

The Organizational Context: Strategy,Structure,and Culture

Project Selection and Portfolio Management

Leadership and the Project Manager

Scope Management

Project Team Building,Conflict,and Negotiation

Risk Management

Project Scheduling: Networks,Duration Estimation,and Critical Path

Project Scheduling: Lagging, Crashing, and Activity Networks

Advanced Topics in Planning and Scheduling: Agile and Critical Chain

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters

Exam 8: Cost Estimation and Budgeting

What are three benefits to the use of contingency funds?

An order of magnitude estimate is usually more accurate than a ballpark estimate.

Normal conditions,by definition,occur the vast majority of the time in project management.

When asked to provide an estimate of an irrigation system,Pete looked from one end of the field to the other,licked a finger and held it in the air,squinted into the sun and said $25,000,give or take 30%.The technique employed for cost estimation is:

Contingency money is:

Poor initial scope development and work breakdown structure often creates cost overruns that are attributable to:

What is the total project budget for design 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

Which statement about the use of learning curves is BEST?

Whether it is the Boeing V-22 Osprey or a simple storm door installation for a do-it-yourselfer,nothing is ever completed as quickly or as cheaply as initial estimates due to:

The project management research in brief titled "Delusion and Deception Taking Place in Large Infrastructure Projects," describes three reasons that cost overruns occur in large infrastructure project work.Briefly describe these three reasons

Which of these is typically a nonrecurring cost?

Which of the following is NOT contained in a typical time-phased budget?

What is the cumulative project budget for September 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

Comparative estimates are more accurate than definitive estimates when applied to the same project.

What are four major categories of costs? Provide descriptions for each category.

What is the total project budget 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

What are the major issues with cost estimation of software projects?

An advantage of top-down budgeting is:

An early warning signal for the potential of an overdrawn budget is created when:

Introduction: Why Project Management?

The Organizational Context: Strategy,Structure,and Culture

Project Selection and Portfolio Management

Leadership and the Project Manager

Scope Management

Project Team Building,Conflict,and Negotiation

Risk Management

Project Scheduling: Networks,Duration Estimation,and Critical Path

Project Scheduling: Lagging, Crashing, and Activity Networks

Advanced Topics in Planning and Scheduling: Agile and Critical Chain

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters