CH 10, BLOOM

Consider the time-phased budget presented in Figure 9-1. What is the cumulative project budget through the end of April?

$46,000

All of the following factors must be in place in order to develop an analogous estimate effectively EXCEPT:

An organization must know details behind the time value of money

Which estimating technique uses historical data from a similar project as a starting point for creating a time or cost estimate?

Analogous estimating

Which estimating technique decomposes the work into detailed pieces for which estimates are prepared and then aggregated into a total quantity for the project?

Bottom-up estimating

The approved time-phases project budget, excluding any management reserves, which can be changed only through formal change control procedures and is used as a basis of comparing actual results, is called a ___.

Cost Baseline

The process of developing an approximation of the cost of the monetary resources needed to complete project activities is known as:

Estimate Cost

Projects often include indirect costs that are not associated directly with one specific project. Which of the following items are most typically considered to be indirect costs?

Executive salaries, utilities and insurance

What type of cost is incurred when a project must be conducted faster than normal, and overtime for workers and/or extra charges for rapid delivery from suppliers are necessary?

Expedited Costs

All of the following are among the benefits realized as a consequence of developing a cost management plan EXCEPT:

It documents how the business case should be created.

All of the following items describe an aspect of life cycle costing EXCEPT:

Life cycle cost only includes the project cost from initiating through closing

The documentation of a project cost estimate generally requires substantial supporting detail to include all of these EXCEPT:

Management reserve needs

A milestone is a typical measuring point used when establishing cost control. Which of the following DOES NOT accurately describe the use of cost control milestones?

Milestones are developed during risk planning.

Activity based costing allocates indirect costs to fixed costs based on different types of cost drivers. Which of the following is one of the cost drivers that serve as a basis of cost allocation?

Number of units produced

Which estimating technique uses an algorithm to calculate cost or duration based on historical data and other project parameters?

Parametric Estimating

Complex projects such as research and development for new products often employ rolling wave planning to estimate costs. Which of the following best describes "rolling wave" planning?

Project Managers render a definitive estimate for the first stage and an order of magnitude estimate for the remainder of the project.

Costs that repeat as project work continues such as writing code are appropriately classified as:

Recurring costs

Which of the following terms best describes a provision in the project management plan to mitigate cost and/or schedule risk?

Reserve

"unknown unknowns" are unexpected events which can occur when the project is underway. All of the following accurately describe an implication associated with unknown unknowns EXCEPT:

They are usually discovered during risk identification

There are many causes of variation in project costs. Which of the following accurately describes the nature of this variation?

Variation occurs in all work processes and the novelty associated with most projects creates many opportunities for variation.

Events discovered during Identify Risks that may or may not occur are often categorized as:

known unknowns