OMIS 352 Ch 7
A budgetary estimate is the most accurate of the three types of estimates. True False
False
Definitive estimates are made one year or less prior to project completion. True False
True
A cost estimation tool which is used to allocate money into an organization's budget is known as a _____ estimate. a.budgetary b.rough order of magnitude c.definitive d.ballpark
A
One of the main outputs of the _____ process is a cost baseline. a. cost budgeting b. cost estimating c. cost planning d. cost controlling
A
Variances are calculated by subtracting the actual cost from _____. a. earned value b. planned value c. schedule variance d. rate of performance
A
One of the main outputs of the _____ process is a cost baseline. a.cost estimating b.cost budgeting c.cost planning d.cost controlling
B
Schedule variance is: a.the planned value plus the earned value. b.the earned value minus the planned value. c.the planned value plus the rate of performance. d.the earned value minus the actual cost.
B
Which of the following is true of a rough order of magnitude estimate? a. It is a type of estimate that is done in the final stages of a project. b. It is used to allocate money into an organization's budget. c. It provides an estimate of what a project will cost. d. Its timeframe is always less than a year prior to project completion.
C
Which of the following is true of bottom-up estimates? a.They are also known as parametric estimating. b.They are based on the actual cost of a previous, similar project. c.They are most accurate when they involve large, extensive work items. d.They are time-intensive and expensive to develop.
C
Profits may be defined as: a.expenses plus net income. b.costs plus revenues. c.revenues plus expenses. d.revenues minus expenditures
D
Which of the following is true of earned value? a.It is also known as the planned value. b.It is the actual cost plus the planned cost. c.It is based solely on the total cost estimate to be spent on an activity. d.It is an estimate of the value of the physical work actually completed.
D
Which of the following is true of the schedule performance index (SPI)? a.It is the ratio of planned value to actual costs. b.It means that a project is ahead of schedule if SPI is lesser than one or hundred percent. c.It means that a project is behind schedule if an SPI is greater than one. d.It can be used to estimate the projected time to complete the project.
D
If cost variance is a positive number, it means that performing the work costs more than planned. True False
False
It is important for project managers to focus on indirect costs because they can be easily controlled. True False
False
Supporting details for an estimate include the ground rules and assumptions used in creating the estimate True False
False
When deciding what projects to invest in or continue, one should include sunk costs. True False
False
A schedule performance index of one means that the project is on schedule. True False
True
It is important for project managers to understand that every cost estimate is unique. True False
True
It is important for project managers to understand that every cost estimate is unique. True False
True
One of the reasons why project cost estimates are inaccurate is because human beings are biased toward underestimation. True False
True