Quiz 6 (CH 5,10)

_____ involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance.

Determining the budget

Analogous estimates are called activity-based costing.

False

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.

False

Overrun is the additional percentage amount by which estimates exceed actual costs.

False

The primary output of the planning cost management process is a change request.

False

_____ includes the processes required to ensure that a project team completes a project within an approved budget.

Project cost management

Definitive estimates are made one year or less prior to project completion.

True

Parametric models are reliable when the models are flexible in terms of the project's size.

True

Supporting details for an estimate include the ground rules and assumptions used in creating the estimate. (T/F)

True

A _____ estimate is used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs.

definitive