SPM Chap 7
15.____ allow for future situations that may be partially planned for. a.Contingency reserves c.Unknown unknowns b.Management reserves d.Direct reserves
A
19.A ____ is used to allocate money into an organization's budget. a.budgetary estimate c.rough order of magnitude estimate b.definitive estimate d.final estimate
A
26.The main goal of the ____ process is to produce a cost baseline for measuring project performance and project funding requirements. a.cost budgeting c.cost control b.cost consolidation d.cost estimating
A
5.____ involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance. a.Determining the budget c.Controlling costs b.Consolidation of costs d.Estimating costs
A
16.____ allow for future situations that are unpredictable. a.Contingency reserves c.Known unknowns b.Management reserves d.Indirect reserves
B
20.A ____ is used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs. a.budgetary estimate c.rough order of magnitude estimate b.definitive estimate d.final estimate
B
32.The ____ is an estimate of the value of the physical work actually completed. a.AC c.RP b.EV d.PV
B
6.____ is the ratio of revenues to profits. a.Profit c.Cost structure b.Profit margin d.Cost margin
B
8.____, with assistance from financial experts in their organizations, should create estimates of the costs and benefits of the project for its entire life cycle. a.Financial mangers c.Budget managers b.Project managers d.System managers
B
1.The Standish Group's CHAOS studies reported an average cost overrun for unsuccessful IT projects ranged from 180 percent in 1994 to ____ percent in 2004. a.28 c.56 b.43 d.73
C
11.____ are those costs that an organization can easily measure in dollars. a.Intangible costs c.Tangible costs b.Direct costs d.Indirect costs
C
12.Project managers should focus on ____, since they can control them. a.sunk costs c.direct costs b.indirect costs d.intangible costs
C
17.A ____ provides an estimate of what a project will cost. a.budgetary estimate c.rough order of magnitude estimate b.definitive estimate d.final estimate
C
18.A ____ is done very early in a project or even before a project is officially started. a.budgetary estimate c.rough order of magnitude estimate b.definitive estimate d.final estimate
C
2.Three separate surveys of software project cost overruns found that the average cost overrun for all of the projects in their survey samples (not just unsuccessful projects) were ____ percent. a.13-14 c.33-34 b.23-24 d.43-44
C
22.____ involve estimating individual work items or activities and summing them to get a project total. a.Actual estimates c.Bottom-up estimates b.Parametric estimates d.Analogous estimates
C
27.A ____ is a time-phased budget that project managers use to measure and monitor cost performance. a.budget baseline c.cost baseline b.ledger d.cost line
C
31.The ____ is the ratio of actual work completed to the percentage of work planned to have been completed at any given time during the life of the project or activity. a.AC c.RP b.EV d.PV
C
37.The ____ is the ratio of earned value to actual cost and can be used to estimate the projected cost of completing the project. a.SV c.CPI b.CV d.SPI
C
39.The ____ is an estimate of what it will cost to complete the project based on performance to date. a.CPI c.EAC b.SV d.SPI
C
7.____ helps you develop an accurate projection of a project's financial costs and benefits. a.Profit cycle costing c.Life cycle costing b.Financial costing d.Profit margin costing
C
10.____ is a method for determining the estimated annual costs and benefits for a project and the resulting annual cash flow. a.Life cycle costing c.Cost estimating b.Profit margin analysis d.Cash flow analysis
D
13.____ are costs that are not directly related to the products or services of the project, but are indirectly related to performing the project. a.Intangible costs c.Direct costs b.Tangible costs d.Indirect costs
D
21.____ use the actual cost of a previous, similar project as the basis for estimating the cost of the current project. a.Actual estimates c.Bottom-up estimates b.Parametric estimates d.Analogous estimates
D
3.____ includes the processes required to ensure that a project team completes a project within an approved budget. a.Cost budgeting c.Cost control b.Cost estimating d.Project cost management
D
30.The ____ is that portion of the approved total cost estimate planned to be spent on an activity during a given period. a.AC c.RP b.EV d.PV
D
38.The ____ is the ratio of earned value to planned value and can be used to estimate the projected time to complete the project. a.SV c.CPI b.CV d.SPI
D
4.____ involves developing an approximation or estimate of the costs of the resources needed to complete a project. a.Determining the budget c.Controlling costs b.Consolidation of costs d.Estimating costs
D
9.Since organizations depend on reliable information technology, there are also huge costs associated with ____. a.work time c.uptime b.technical planning d.downtime
D
14.____ should be forgotten. a.Sunk costs c.Direct costs b.Indirect costs d.Intangible costs
A
28.The project management plan, project funding requirements, work performance data, and organizational process assets are inputs for the process of ____. a.controlling costs c.consolidating costs b.budgeting costs d.estimating costs
A
33.The ____ is the total direct and indirect costs incurred in accomplishing work on an activity during a given period. a.AC c.RP b.EV d.PV
A
34.Variances are calculated by subtracting the actual cost or planned value from ____. a.EV c.PV b.AC d.RP
A
36.____ is the earned value minus the planned value. a.SV c.CPI b.CV d.SPI
A
40.Using simplified percentage complete amounts for a one-year project with weekly reporting and an average task or work packet size of one week, you can expect about a(n) ____ percent error rate. a.1 c.11 b.5 d.15
A
23.A(n) ____ might provide an estimate of $50 per line of code for a software development project based on the programming language the project is using, the level of expertise of the programmers, the size and complexity of the data involved, and so on. a.analogous cost estimate c.bottom-up estimate b.parametric model d.reserve analysis
B
24.Tom DeMarco, a well-known author on software development, suggests ____ reasons for the inaccuracies of many information technology project cost estimates and some ways to overcome them. a.three c.five b.four d.six
B
25.If the cost estimate will be the basis for contract awards and performance reporting, it should be a ____ and as accurate as possible. a.budgetary estimate c.rough order of magnitude estimate b.definitive estimate d.final estimate
B
29.____ is a project performance measurement technique that integrates scope, time, and cost data. a.Cost baseline c.Constructive cost modeling b.Earned value management d.Parametric modeling
B
35.____ is the earned value minus the actual cost. a.SV c.CPI b.CV d.SPI
B
