Chapter 7 IT Project Manager:
A _____ estimate is used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs.
definitive
If the cost estimate for a project is a basis for contract awards and performance reporting, it should be a(n) _____ estimate and as accurate as possible.
definitive
Indirect costs are:
not directly related to the products or services of a project.
One of the reasons why project cost estimates are inaccurate is because human beings are biased toward underestimation.
T
Which of the following is an output of the process of controlling costs?
Cost forecasts
_____ involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance.
Determining the budget
Which of the following involves developing an approximation of the costs of resources needed to complete a project?
Estimating costs
A budgetary estimate is the most accurate of the three types of estimates.
F
A negative schedule variance means that it took lesser than planned to perform the work.
F
Analogous estimates are called activity-based costing.
F
Analogous estimates are the most accurate technique to estimate costs.
F
Budgetary estimates are made even before a project is officially started.
F
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.
F
_____ are those costs that are difficult to measure in monetary terms.
Intangible costs
Which of the following is true of the schedule performance index (SPI)?
It can be used to estimate the projected time to complete the project.
Which of the following is true of earned value?
It is an estimate of the value of the physical work actually completed.
_____ helps develop an accurate projection of a project's financial expenses and benefits.
Life cycle costing
Which of the following reserves allows for future situations that are unpredictable?
Management reserves
Which of the following is most likely to be a reason for inaccuracies in information technology cost estimates?
People lack estimating experience.
_____ includes the processes required to ensure that a project team completes a project within an approved budget.
Project cost management
If an important supplier goes out of business, management reserves can be set aside to cover the resulting costs.
T
Supporting details for an estimate include the ground rules and assumptions used in creating the estimate.
T
The formulas for variances and indexes start with EV, the earned value.
T
Which of the following is true of contingency reserves?
They allow for future situations that can be partially planned for.
Which of the following is true of bottom-up estimates?
They are time-intensive and expensive to develop.
A rough order of magnitude estimate can be referred to as a _____ estimate.
ballpark
A cost estimation tool which involves estimating individual work items or activities and summing them to get a project total is known as a(n) _____ estimate.
bottom-up
The cost performance index (CPI):
can be used to estimate the projected cost of completing the project.
One of the main outputs of the _____ process is a cost baseline.
cost budgeting
The main goal of the _____ process is to produce a cost baseline for measuring project performance and project funding requirements.
cost budgeting
Work performance information and cost forecasts are main outputs of the _____ process.
cost control
The process of controlling costs primarily involves:
managing changes to the project budget.
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.
sunk
Schedule variance is:
the earned value minus the planned value.
Analogous estimates are also known as _____ estimates.
top-down
