Question 1

The total direct and indirect costs incurred in accomplishing work on an activity during a given period is known as the _____.

Accepted Answer

The answer of The total direct and indirect costs incurred...

Question 2

The formulas for variances and indexes start with EV, the earned value.

Accepted Answer

A) True 
 B)False

Question 3

A rough order of magnitude estimate can be referred to as a _____ estimate.

Accepted Answer

A)  definitive
B)  budgetary  
C)  final
D)  ballpark

Question 4

A cost management plan can include organizational procedures links, control thresholds, and process descriptions.

Accepted Answer

A) True 
 B)False

Question 5

In practice, many people find that using a combination or hybrid approach involving analogous, bottom up, and/or parametric modeling provides the best _____.

Accepted Answer

The answer of In practice, many people find that using...

Question 6

Which of the following is true of a rough order of magnitude estimate?

Accepted Answer

A)  It is used to allocate money into an organization's budget. 
B)  It provides an estimate of what a project will cost. 
C)  Its timeframe is always less than a year prior to project completion. 
D)  It is a type of estimate that is done in the final stages of a project.

Question 7

Project costs, like project schedules, grow out of the basic documents that initiate a project, like the _____.

Accepted Answer

The answer of Project costs, like project schedules, grow out...

Question 8

A cost estimation tool which is used to allocate money into an organization's budget is known as a _____ estimate.

Accepted Answer

A)  budgetary
B)  definitive  
C)  rough order of magnitude
D)  ballpark

Question 9

Which of the following is true of analogous estimates?

Accepted Answer

A)  Their main disadvantage is that they cost more than other techniques. 
B)  They are the only technique which do not require expert judgement. 
C)  They are most reliable when previous projects are similar in fact with current projects. 
D)  They use project characteristics in a mathematical model to estimate project costs.

Question 10

The cost performance index can be used to calculate the _____ which gives an approximate cost of completing a project based on performance to date.

Accepted Answer

estimate a...

Question 11

Determining the budget involves allocating the project cost estimate to individual work items over time.

Accepted Answer

A) True 
 B)False

Question 12

It is important for project managers to understand that every cost estimate is unique.

Accepted Answer

A) True 
 B)False

Question 13

The _____ theory states that when many items are produced repetitively, the unit cost of those items decreases in a regular pattern as more units are produced.

Accepted Answer

The answer of The _____ theory states that when many...

Question 14

Indirect costs are:

Accepted Answer

A)  directly related to performing the project. 
B)  those that cannot be allocated to projects. 
C)  those that can be easily controlled by managers. 
D)  not directly related to the products or services of a project.

Question 15

_____ involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance.

Accepted Answer

A)  Determining the budget
B)  Finalising policies for project costs  
C)  Controlling costs
D)  Estimating costs

Question 16

Which of the following is true of the schedule performance index (SPI) ?

Accepted Answer

A)  It can be used to estimate the projected time to complete the project. 
B)  It means that a project is behind schedule if an SPI is greater than one. 
C)  It means that a project is ahead of schedule if SPI is lesser than one or hundred percent. 
D)  It is the ratio of planned value to actual costs.

Question 17

Which of the following reserves allows for future situations that are unpredictable?

Accepted Answer

A)  Contingency reserves
B)  Management reserves  
C)  Known unknowns
D)  Cost baseline reserves

Question 18

A(n)_____ is the original project plan plus approved changes.

Accepted Answer

The answer of A(n)_____ is the original project plan plus...

Question 19

________ are a means of measuring software size based on what the software does for end users.

Accepted Answer

The answer of ________ are a means of measuring software...

Question 20

Accountants define _____ as a resource sacrificed or foregone to to achieve a specific objective.

Accepted Answer

The answer of Accountants define _____ as a resource sacrificed...

Exam 7: Project Cost Management

Project costs, like project schedules, grow out of the basic documents that initiate a project, like the _____.

Correct AnswerverifiedShow Answer

A cost management plan can include organizational procedures links, control thresholds, and process descriptions.

Correct AnswerverifiedShow Answer

The _____ theory states that when many items are produced repetitively, the unit cost of those items decreases in a regular pattern as more units are produced.

Correct AnswerverifiedShow Answer

It is important for project managers to understand that every cost estimate is unique.

Correct AnswerverifiedShow Answer

Accountants define _____ as a resource sacrificed or foregone to to achieve a specific objective.

Correct AnswerverifiedShow Answer

_____ involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance.

Correct AnswerverifiedShow Answer

Which of the following is true of a rough order of magnitude estimate?

Correct AnswerverifiedShow Answer

________ are a means of measuring software size based on what the software does for end users.

Correct AnswerverifiedShow Answer

The total direct and indirect costs incurred in accomplishing work on an activity during a given period is known as the _____.

Correct AnswerverifiedShow Answer

A cost estimation tool which is used to allocate money into an organization's budget is known as a _____ estimate.

Correct AnswerverifiedShow Answer

Determining the budget involves allocating the project cost estimate to individual work items over time.

Correct AnswerverifiedShow Answer

Which of the following is true of the schedule performance index (SPI) ?

Correct AnswerverifiedShow Answer

The formulas for variances and indexes start with EV, the earned value.

Correct AnswerverifiedShow Answer

A rough order of magnitude estimate can be referred to as a _____ estimate.

Correct AnswerverifiedShow Answer

Indirect costs are:

Correct AnswerverifiedShow Answer

Which of the following is true of analogous estimates?

Correct AnswerverifiedShow Answer

A(n)_____ is the original project plan plus approved changes.

Correct AnswerverifiedShow Answer

Which of the following reserves allows for future situations that are unpredictable?

Correct AnswerverifiedShow Answer

In practice, many people find that using a combination or hybrid approach involving analogous, bottom up, and/or parametric modeling provides the best _____.

Correct AnswerverifiedShow Answer

The cost performance index can be used to calculate the _____ which gives an approximate cost of completing a project based on performance to date.

Correct Answerverifiedestimate a...View AnswerShow Answer

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estimate a...
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