Quiz 7- CIS-486

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

Which of the following types of estimate use the actual cost of a previous, similar project as the basis for estimating the cost of the current project?rect!

Analogous estimates

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

Soles is a footwear company which has recently set up its store in Ambrosia. To manufacture its products, Soles incurs a range of different costs. Which of the following would be an example of an indirect cost?

Electricity used to run its factories

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.

_____ helps develop an accurate projection of a project's financial expenses and benefits.

Life cycle costing

_____ uses project characteristics in a mathematical model to estimate project costs.

Parametric estimating

Which of the following is most likely to be a reason for inaccuracies in information technology cost estimates?

People lack estimating experience.

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 analogous estimates?

They are most reliable when previous projects are similar in fact with current projects.

Which of the following is true of tangible costs?

They can be easily measured.

Which of the following is an input of the process of controlling costs?

Work performance data

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

A cost estimation tool which is used to allocate money into an organization's budget is known as a _____ estimate.

budgetary

Work performance information and cost forecasts are main outputs of the _____ process.

cost control

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

Variances are calculated by subtracting the actual cost from _____.

earned value

The process of controlling costs primarily involves:

managing changes to the project budget.

Indirect costs are:

not directly related to the products or services of a project.

The budget is one of the three values of earned value management and is also known as _____.

planned value

Cost variance is:

the earned value minus the actual cost.

Schedule variance is:

the earned value minus the planned value.

Analogous estimates are also known as _____ estimates.

top-down