Q&A Hero

Q: A rough order of magnitude estimate can be referred to as a _____ estimate.a. definitive b. budgetaryc. final d. ballpark

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

Q: The first step in project cost management is: a. to allocate project cost estimates to individual material resources. b. to plan how costs will be managed. c. to control project costs and monitor cost performance. d. to develop several estimates of costs for different types of resources.

Q: Which of the following reserves allows for future situations that are unpredictable?a. Contingency reserves b. Management reservesc. Known unknowns d. Cost baseline reserves

Q: Which of the following is true of contingency reserves? a. They allow for future situations that can be partially planned for. b. They are also known as unknown unknowns. c. They are not included in a cost baseline. d. They allow for dollar amounts to be used to cover existing, fixed costs.

Q: Good Earth, a company manufacturing packaged food products, sets up its stores in Baltonia. However, a year later, the company closes the store down due to high operating costs. In such a scenario, the money spent in paying for the rent of the store in Baltonia would be an example of _____ costs.a. recurring b. directc. sunk d. intangible

Q: Soles is a footwear company which has recently set up its store in Ambrosia. To manufacture its products, Soles incurs a range of different costs. Which of the following would be an example of an indirect cost? a. Cost of machines to produce shoes b. Salary paid to factory workers c. Electricity used to run its factories d. Cost of leather used to manufacture shoes

Q: Indirect costs are: 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.

Q: Newtech Inc. hires John for the position of a software programmer to work on their new project. Salary paid to John by Newtech Inc. would be an example of _____ costs.a. direct b. indirectc. sunk d. intangible

Q: _____ are those costs that are difficult to measure in monetary terms.a. Intangible costs b. Direct costsc. Tangible costs d. Fixed costs

Q: Which of the following is true of tangible costs?a. They cannot be calculated in monetary terms.b. They can be easily measured.c. They are difficult to quantify.d. Their examples include goodwill and prestige.

Q: _____ is a method for determining the estimated annual costs and benefits for a project.a. Critical path analysis b. Cash flow analysisc. Present value analysis d. Requirements analysis

Q: _____ helps develop an accurate projection of a project's financial expenses and benefits.a. Critical path analysis b. Fast trackingc. Life cycle costing d. Crashing

Q: Profits may be defined as:a. expenses plus net income. b. costs plus revenues.c. revenues plus expenses. d. revenues minus expenditures.

Q: Work performance information and cost forecasts are main outputs of the _____ process.a. cost budgeting b. cost estimatingc. cost control d. cost pricing

Q: The process of controlling costs primarily involves:a. determining the policies for project costs. b. managing changes to the project budget.c. finalising the procedures for project costs. d. determining a basis for estimates.

Q: One of the main outputs of the _____ process is a cost baseline.a. cost controlling b. cost estimatingc. cost budgeting d. cost planning

Q: _____ involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance.a. Determining the budget b. Finalising policies for project costsc. Controlling costs d. Estimating costs

Q: Which of the following involves developing an approximation of the costs of resources needed to complete a project?a. Determining the budget b. Finalising the cost baselinec. Controlling costs d. Estimating costs

Q: _____ includes the processes required to ensure that a project team completes a project within an approved budget.a. Project scope management b. Project quality managementc. Project time management d. Project cost management

Q: Spreadsheets are a common tool for cost estimating, cost budgeting, and cost control. a. True b. False

Q: In an earned value chart, when the actual cost line is right on or above the earned value line, it indicates that costs are less than planned. a. True b. False

Q: A schedule performance index of one means that the project is on schedule. a. True b. False

Q: If the cost performance index (CPI) is less than 100 percent, the project is under budget. a. True b. False

Q: A negative schedule variance means that it took lesser than planned to perform the work. a. True b. False

Q: If cost variance is a positive number, it means that performing the work costs more than planned. a. True b. False

Q: The formulas for variances and indexes start with EV, the earned value. a. True b. False

Q: The project management plan and project funding requirements are inputs of the process of controlling costs. a. True b. False

Q: Determining the budget involves allocating the project cost estimate to individual work items over time. a. True b. False

Q: It is important for project managers to understand that every cost estimate is unique. a. True b. False

Q: One of the reasons why project cost estimates are inaccurate is because human beings are biased toward underestimation. a. True b. False

Q: Parametric models are reliable when the models are flexible in terms of the project's size. a. True b. False

Q: In a bottom-up estimate, the size of the individual work items is one of the factors that drives the accuracy of the estimates. a. True b. False

Q: Analogous estimates are the most accurate technique to estimate costs. a. True b. False

Q: Analogous estimates are called activity-based costing. a. True b. False

Q: Supporting details for an estimate include the ground rules and assumptions used in creating the estimate. a. True b. False

Q: Estimates should become more accurate as time progresses. a. True b. False

Q: Definitive estimates are made one year or less prior to project completion. a. True b. False

Q: Budgetary estimates are made even before a project is officially started. a. True b. False

Q: A budgetary estimate is the most accurate of the three types of estimates. a. True b. False

Q: A cost management plan can include organizational procedures links, control thresholds, and process descriptions. a. True b. False

Q: Contingency reserves are also known as unknown unknowns. a. True b. False

Q: If an important supplier goes out of business, management reserves can be set aside to cover the resulting costs. a. True b. False

Q: It is important for project managers to focus on indirect costs because they can be easily controlled. a. True b. False

Q: When deciding what projects to invest in or continue, one should include sunk costs. a. True b. False

Q: Intangible costs can be easily measured in monetary terms. a. True b. False

Q: Project managers must conduct cash flow analysis to determine net present value. a. True b. False

Q: IT project managers must be able to present and discuss project information both in financial and technical terms. a. True b. False

Q: The primary output of the planning cost management process is a change request. a. True b. False

Q: Overrun is the additional percentage amount by which estimates exceed actual costs. a. True b. False

Q: A hierarchical structure that identifies the project's resources by category and type is known as a(n) _____.

Q: _____ have no duration and no resources but are occasionally needed on AOA network diagrams to show logical relationships between activities.

Q: In a(n) _____ relationship, the "from" activity must start before the "to" activity can be finished.

Q: In a network diagram, a(n) _____ is the starting and ending point of an activity.

Q: A(n) _____ is a schematic display of the logical relationships among project activities and their sequencing.

Q: In the activity defining process, the project team should review the _____ and activity attributes with project stakeholders before moving on to the next step in project time management.

Q: The activity list should include the _____, an activity identifier, and a brief description of the activity.

Q: The _____ is a tabulation of activities to be included on a project schedule.

Q: After reviewing the project management plan, project charter, enterprise environmental factors, and organizational process assets, the project team uses expert judgment, analytical techniques, and meetings to develop the _____.

Q: In project time management, the process of _____ involves deciding how many people, equipment, and materials a project team should use to perform project activities.

Q: _____ involves the processes required to ensure timely completion of a project.

Q: In a project schedule, the variable that has the least amount of flexibility is _____.

Q: In project procurement management, which of the following is an output of the executing process?a. Make-or-buy decisions b. Statements of workc. Source selection criteria d. Resource calendars

Q: A draft schedule for a project is most likely to be found in a _____.a. project buffer b. project charterc. resource breakdown structure d. project's dummy activities list

Q: Which of the following is an output of schedule control?a. Lessons-learned reports b. Activity attributesc. Resource requirements d. Milestones list

Q: Which of the following is a silimarity between scope control and schedule control? a. Both are initial processes of project time management. b. Both of their primary goals is to define project goals and miestones. c. Both are portions of the integrated change control process under project integration management. d. Both of these processes should occur before estimating activity durations.

Q: A difference between the Program Evaluation and Review Technique (PERT) and critical path method (CPM) is that: a. CPM addresses the risk associated with duration estimates whereas PERT does not. b. unlike CPM, PERT estimates only when there is no risk of uncertainty. c. CPM involves more work than PERT because it requires several duration estimates. d. PERT uses different duration estimates whereas CPM uses one specific duration estimate.

Q: _____ states that work expands to fill the time allowed.a. Murphy's Law b. Miller's Lawc. Parkinson's Law d. Einstein's Law

Q: Critical chain scheduling protects tasks on the critical chain from being delayed by using _____, which consist of additional time added before tasks on the critical chain that are preceded by non-critical-path tasks.a. critical paths b. feeding buffersc. dummy activities d. fast tracking

Q: A similarity between the crashing technique and the fast tracking technique is that: a. both spread out tasks over a long period of time to ensure the quality of work is maintained. b. both invariably result in increases in total project costs. c. both can shorten the time needed to finish a project. d. both are network diagramming techniques used primarily to predict total project duration.

Q: The technique for making cost and schedule trade-offs to obtain the greatest amount of schedule compression for the least incremental cost is known as _____.a. dependency b. crashingc. critical chain scheduling d. feeding buffers

Q: Which of the following techniques involve doing activities in parallel that one would normally do in sequence?a. Critical chain scheduling b. Crashingc. Fast tracking d. PERT analysis

Q: The _____ for an activity is the latest possible time an activity might begin without delaying the project finish date.a. early finish date b. late finish datec. late start date d. early start date

Q: _____ is the amount of time an activity can be delayed from its early start without delaying the planned project finish date.a. Total slack b. Free floatc. Backward pass d. Forward pass

Q: The amount of time an activity can be delayed without delaying the early start date of any immediately following activities is known as a _____.a. forward pass b. backward passc. fast tracking d. free slack

Q: The critical path is the _____ path through a network diagram, and it represents the _____ amount of slack or float.a. longest; longest b. longest; shortestc. shortest; longest d. shortest; shortest

Q: Which of the following is a network diagramming technique used primarily to predict total project duration?a. Gantt chart b. Critical path analysisc. Resource breakdown structure d. Arrow diagramming method

Q: _____ provide(s) a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in a calendar format.a. Gantt charts b. Critical path analysisc. Arrow diagramming method d. PERT analysis

Q: In project time management, the ultimate goal of _____ is to provide a basis for monitoring project progress for the time dimension of the project.a. defining activities b. sequencing activitiesc. developing a schedule d. estimating activity resources

Q: After working with key stakeholders to define activities and calculate their resources, the next process in project time management is to:a. develop the schedule. b. control the schedule.c. determine their dependencies. d. estimate the duration of activities.