Question 1

A key for developing project cost estimates is to:

Accepted Answer

A)  Cost the project while considering the total package. 
B)  Cost the project on a work package and task basis. 
C)  Cost the project on a major module basis. 
D)  Cost the project and add 33% for contingency. 
A)  Cost the project while considering the total package. 
B)  Cost the project on a work package and task basis. 
C)  Cost the project on a major module basis. 
D)  Cost the project and add 33% for contingency.

Question 2

A common reason for cost overruns in a project is a low initial estimate of project cost.

Accepted Answer

A) True 
 B)False

Question 3

What is activity-based costing and how is it performed?

Accepted Answer

Activity-based costing (ABC)is a budgeti

Question 4

Which of these is typically a recurring cost?

Accepted Answer

A)  Preliminary market analysis 
B)  Personnel training 
C)  Outplacement services 
D)  Logistics 
A)  Preliminary market analysis 
B)  Personnel training 
C)  Outplacement services 
D)  Logistics

Question 5

Activity-based costing is based on the notion that projects consume activities and activities consume resources.

Accepted Answer

A) True 
 B)False

Question 6

The term expedited cost has the same meaning as crashing cost in the project management milieu.

Accepted Answer

A) True 
 B)False

Question 7

A budgeting method that assigns costs first to activities and then to projects based on each project's use of resources is:

Accepted Answer

A)  Activity-based budgeting. 
B)  Zero-based budgeting. 
C)  Top-down budgeting. 
D)  Bottom-up budgeting. 
A)  Activity-based budgeting. 
B)  Zero-based budgeting. 
C)  Top-down budgeting. 
D)  Bottom-up budgeting.

Question 8

Contingency money is:

Accepted Answer

A)  The money that must be received before any project work can begin. 
B)  Money that is spent first to lock-in all contract guarantees. 
C)  Not usually a part of the activity-based costing process. 
D)  Valued at a higher rate than non-contingency money when determining project costs. 
A)  The money that must be received before any project work can begin. 
B)  Money that is spent first to lock-in all contract guarantees. 
C)  Not usually a part of the activity-based costing process. 
D)  Valued at a higher rate than non-contingency money when determining project costs.

Question 9

Activity-based costing and bottom-up budgeting share the step of:

Accepted Answer

A)  Identifying cost drivers associated with each activity. 
B)  Identifying activities that consumer resources and assigning costs to them. 
C)  Assigning costs to projects by multiplying the cost driver rate times the volume of units. 
D)  Tending to overestimate project costs due to the lack of involvement by top management. 
A)  Identifying cost drivers associated with each activity. 
B)  Identifying activities that consumer resources and assigning costs to them. 
C)  Assigning costs to projects by multiplying the cost driver rate times the volume of units. 
D)  Tending to overestimate project costs due to the lack of involvement by top management.

Question 10

It began as a simple macro that would extract grades and post them on a web site,but once the web programmer began the work,he became obsessed with various charting features,grade summaries,and reports that could be added to make this the grandest web site in the tri-county area.As 2 hours of programming work grew to 20 and then 80,he knew that the client wouldn't be happy with the cost overrun.The only comment he mumbled as he finished his work was:

Accepted Answer

A)  "I had some technical difficulties, sorry." 
B)  "There were some specification changes, sorry." 
C)  "This project lacked definition from the outset, sorry." 
D)  "I thought I'd never get the wizard's hat! Oh, by the way, your grades work." 
A)  "I had some technical difficulties, sorry." 
B)  "There were some specification changes, sorry." 
C)  "This project lacked definition from the outset, sorry." 
D)  "I thought I'd never get the wizard's hat! Oh, by the way, your grades work."

Question 11

"If the weather holds and the utility service has correctly marked the location of the gas,telephone,and electric lines zigzagging across my property,I should be able to install the accent lighting in my back yard in an afternoon's time," the do-it-yourselfer commented to his jealous (and skeptical)neighbor.The only reply he received was his neighbor's,"Good luck with all that,I remember reading somewhere that:

Accepted Answer

A)  Project scope is fixed once the planning period is completed." 
B)  Normal conditions are rarely encountered." 
C)  There are no truly external factors in project execution." 
D)  Activity based costing shouldn't be used in a project of this scale." 
A)  Project scope is fixed once the planning period is completed." 
B)  Normal conditions are rarely encountered." 
C)  There are no truly external factors in project execution." 
D)  Activity based costing shouldn't be used in a project of this scale."

Question 12

What learning rate is being demonstrated if the first unit takes 25 hours and the seventh unit takes 22 hours to complete?

Accepted Answer

A)  Greater than or equal to 97 percent 
B)  Less than 97 percent but greater than or equal to 96 percent 
C)  Less than 96 percent but greater than or equal to 95 percent 
D)  Less than 95 percent 
A)  Greater than or equal to 97 percent 
B)  Less than 97 percent but greater than or equal to 96 percent 
C)  Less than 96 percent but greater than or equal to 95 percent 
D)  Less than 95 percent

Question 13

What's the relationship between WBS,scheduling,and budgeting?

Accepted Answer

The central goal of a budget is the need

Question 14

"If anything can go wrong it often will" is an articulation of:

Accepted Answer

A)  Taylor's Theorem. 
B)  Pinto's Postulate. 
C)  Murphy's Law. 
D)  The Pareto Principle. 
A)  Taylor's Theorem. 
B)  Pinto's Postulate. 
C)  Murphy's Law. 
D)  The Pareto Principle.

Question 15

Function point analysis is a system for estimating the size of software projects based on the number of lines of code a typical programmer can write in a day.

Accepted Answer

A) True 
 B)False

Question 16

What is a time-phased budget and how does it help a project manager control costs?

Accepted Answer

A time-phased budget allocates costs acr

Question 17

An activity with a learning rate of 0.85 takes 25 hours for the first iteration.How long will it take to complete this task for the 15th time?

Accepted Answer

A)  12.55 hours 
B)  12.85 hours 
C)  13.15 hours 
D)  13.25 hours 
A)  12.55 hours 
B)  12.85 hours 
C)  13.15 hours 
D)  13.25 hours

Question 18

Unplanned costs incurred when steps are taken to speed up a project's completion are called:

Accepted Answer

A)  Expedited costs. 
B)  Accelerated costs. 
C)  Pass-through costs. 
D)  Normal costs. 
A)  Expedited costs. 
B)  Accelerated costs. 
C)  Pass-through costs. 
D)  Normal costs.

Question 19

If it takes 40 hours to complete the first unit and the company knows from experience that the learning rate should be 0.80,how fast can they be expected to finish all twelve units?

Accepted Answer

A)  18 hours 
B)  289 hours 
C)  264 hours 
D)  316 hours 
A)  18 hours 
B)  289 hours 
C)  264 hours 
D)  316 hours

Question 20

When properly performed,bottom-up budgeting has the disadvantage of:

Accepted Answer

A)  A lack of detail needed in project plans. 
B)  A lack of coordination among project managers and functional department heads. 
C)  Being a hindrance to top managers when prioritizing projects that are competing for the same scarce resources. 
D)  A reduction of top management's control of the budget process to one of oversight. 
A)  A lack of detail needed in project plans. 
B)  A lack of coordination among project managers and functional department heads. 
C)  Being a hindrance to top managers when prioritizing projects that are competing for the same scarce resources. 
D)  A reduction of top management's control of the budget process to one of oversight.

A key for developing project cost estimates is to:

A common reason for cost overruns in a project is a low initial estimate of project cost.

What is activity-based costing and how is it performed?

Which of these is typically a recurring cost?

Activity-based costing is based on the notion that projects consume activities and activities consume resources.

The term expedited cost has the same meaning as crashing cost in the project management milieu.

A budgeting method that assigns costs first to activities and then to projects based on each project's use of resources is:

Contingency money is:

Activity-based costing and bottom-up budgeting share the step of:

What learning rate is being demonstrated if the first unit takes 25 hours and the seventh unit takes 22 hours to complete?

What's the relationship between WBS,scheduling,and budgeting?

"If anything can go wrong it often will" is an articulation of:

Function point analysis is a system for estimating the size of software projects based on the number of lines of code a typical programmer can write in a day.

What is a time-phased budget and how does it help a project manager control costs?

An activity with a learning rate of 0.85 takes 25 hours for the first iteration.How long will it take to complete this task for the 15th time?

Unplanned costs incurred when steps are taken to speed up a project's completion are called:

If it takes 40 hours to complete the first unit and the company knows from experience that the learning rate should be 0.80,how fast can they be expected to finish all twelve units?

When properly performed,bottom-up budgeting has the disadvantage of:

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

A key for developing project cost estimates is to:

A common reason for cost overruns in a project is a low initial estimate of project cost.

What is activity-based costing and how is it performed?

Which of these is typically a recurring cost?

Activity-based costing is based on the notion that projects consume activities and activities consume resources.

The term expedited cost has the same meaning as crashing cost in the project management milieu.

A budgeting method that assigns costs first to activities and then to projects based on each project's use of resources is:

Contingency money is:

Activity-based costing and bottom-up budgeting share the step of:

What learning rate is being demonstrated if the first unit takes 25 hours and the seventh unit takes 22 hours to complete?

What's the relationship between WBS,scheduling,and budgeting?

"If anything can go wrong it often will" is an articulation of:

Function point analysis is a system for estimating the size of software projects based on the number of lines of code a typical programmer can write in a day.

What is a time-phased budget and how does it help a project manager control costs?

An activity with a learning rate of 0.85 takes 25 hours for the first iteration.How long will it take to complete this task for the 15th time?

Unplanned costs incurred when steps are taken to speed up a project's completion are called:

If it takes 40 hours to complete the first unit and the company knows from experience that the learning rate should be 0.80,how fast can they be expected to finish all twelve units?

When properly performed,bottom-up budgeting has the disadvantage of:

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