[BUS 128] Quiz 5
Consider a five-mile-long railroad tunnel. Tunnel experts and advocates estimate the total cost to be $200 million. What is the reference class for this project? But reference class projects in this area have been over-budget by 30%. So, what should the actual revised budget number be for this proposed five-mile tunnel project?
past tunnel projects, $260M
Which of the following would be the best method for projects where the final product is not known and the uncertainty is very large?
phase estimating
The approach to estimating project time and cost that begins with an overall estimate for the project and then refines estimates for various stages of the project as it is implemented is known as ...
phase estimating method
The estimating factor that considers the decreasing accuracy of estimates as one forecasts activities that are further into the future is known as...
planning horizon
Which of the following is NOT one of the factors that need to be considered to improve quality of estimates for project times and costs?
profit
Which of the following methods is NOT considered a top-down approach to estimating project time and cost?
template
The bottom-up approach for estimating times and costs that uses costs from past projects that were similar to the current project is known as...
template method
Repetition of a task generally results in a reduction of labor hours each successive time a worker performs that task.
true
Which of the following describes the consensus method?
uses pooled experience of senior and/or middle managers to estimate the total project duration and cost
Which of the following top-down methods is used when projects closely follow past projects in regard to features and costs of those features, and result in costs being assigned by percentages to major segments of the project?
apportion
When work package estimates are made by individuals most knowledgeable about the work being performed and these estimates are then "rolled up" to find estimated costs for major deliverables and the project itself
bottom-up estimating is being used
Refining Estimates may be necessary for a number of reasons. For example, a manager getting further into a project and obtaining a better understanding of what needs to be done to accomplish a project and meet the needs of the customer is an example of
changes in project scope
After averaging out the underestimates and overestimates, a long-duration project is more likely to be on target than a short-term, small project.
false
As long as everyone in a project adds a little padding to reduce risk, the project duration and cost estimates will be more accurate.
false
Estimating the total cost of a house by multiplying the total square feet by cost per square foot is an example of the apportion method of estimating costs.
false
Project estimates should be broken down into as much detail, and with as much accuracy, as possible.
false
Costs that are not directly related to a specific project, such as advertising, accounting, and senior management's salary, are classified as...
general and administrative overhead costs
Costs that are associated with time devoted to the coordination in meetings and briefings as well as time necessary to resolve disconnects between tasks are known as...
interaction costs
Learning curves are more likely to be applied in situations where most of the costs are...
labor
Which of the following would best represent direct project costs?
labor, materials, equipment
The pattern of improvement identified from a worker having performed a task multiple times is known as a...
learning curve
The top-down method of estimating project time and costs that is useful for projects requiring the same task, group of tasks, or product repeated several times, especially if it is labor intensive, is the...
learning curves
The estimating factor that considers the tendency to overestimate project time and cost in order to improve the likelihood of meeting the estimates is known as the...
padding estimates factor
