Project Cost Management Chapter 7 CIT 263
Which statement is true of a order of magnitude estimate?
It provides an estimate of what a project will cost.
_____ 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.
Learning curve
Which statement best defines schedule variance?
earned value minus the planned value
The cost performance index can be used to calculate the _____ which gives an approximate cost of completing a project based on performance to date.
estimate at completion
Contingency reserves are also known as unknown unknowns.
false
Project costs, like project schedules, grow out of the basic documents that initiate a project, like the _____.
project charter
A schedule performance index of one means that the project is on schedule.
true
In a bottom-up estimate, the size of the individual work items is one of the factors that drives the accuracy of the estimates.
true
One of the reasons why project cost estimates are inaccurate is because human beings are biased toward underestimation.
true
Parametric models are reliable when the models are flexible in terms of the project's size.
true