C722--Project Management Quiz--Unit 6 Module 21

Which of the following is often used as the project transitions from the defining to the planning phase and it requires that an overall project cost be provided based on the customer's budget or similar projects? --Project plans. --Ratio method. --Bottom-up estimation method. --Apportion method.

--Apportion method. **Correct. The apportion method is often used as the project transitions from the defining to the planning phase. It requires that an overall project cost be provided based on the customers budget or similar projects.

True or false. Baselining is the process of measuring how close actual costs are to the budget, and then making changes in project execution as needed.

--False. **Correct. Baselining means freezing the planned budget so that actual costs can be compared to it throughout the remainder of the project.

True or false. General and administrative costs can be attributed to specific work activities identified in the WBS such as labor, materials supplies and equipment.

--False. **Correct. General and administrative costs are overhead costs from outside of the project team and often include expenses from corporate services such as legal, human resources, and payroll.

True or false. Parametric estimating methods start at the lowest level of the WBS and aggregate cost estimates up to the total project. They require that people with expertise in doing the work estimate the resources needed to complete each work activity.

--False. **Correct. Parametric estimating methods are top-down estimating methods that are based on the relationship between the current project and historical data.

Based on the project expertise and effort required to develop bottom-up estimates, they are normally developed during which phase of a project? --Execution. --Closing. --Planning. --Defining.

--Planning. **Correct. Based on the project experience and effort required to develop bottom-up estimates, they are normally developed during the detailed planning phase of a project when level of knowledge is greater.

Which of the following uses experience from prior project to estimate the overall cost of the current project? --Business scenario. --Project charter. --Ratio method. --Project objective.

--Ratio method. **Correct. The ratio method uses experience from prior projects to estimate the overall cost of the current project.

Early cost approximations are most often developed using _________________ provided by someone at the organization who has knowledge or experience from prior projects similar to the project being considered. --Risk management. --Bottom-up estimation methods. --Top-down estimation methods. --Project plans.

--Top-down estimation methods. **Correct. Early cost approximations are most often developed using top-down estimation methods provided by someone at the organization who has knowledge or experience from prior projects similar to the project being considered.

True or false. A calendarized budget distributes costs across the time periods of a project.

--True. **Correct. A calendarized budget distributes costs across the time periods of the project. Knowing when expenses will occur allows the organization to ensure that sufficient money is available to pay the bills when due.

True or false. Management reserves are costs included in the budget to cover unknown project risks.

--True. **Correct. A management reserve is an amount added to the overall project budget to cover unknown project risks.

Direct overhead costs are costs such as work space, supervision, project administration, equipment, or other resources from the project that are shared across the work activities.

--True. **Correct. Direct overhead costs are also called indirect costs because they cannot be directly attributed to specific project work activity.

True or false. The resource allocation histogram is a good tool to assist in generating a calendarized budget because it shows how much of each resource is required for each time period.

--True. **Correct. The resource allocation histogram makes it possible for the costs for each resource to be included in the calendarized budget.

Which of the following requires that estimates be made at the detailed work activity level of the WBS by functional experts with knowledge of the required/available resources to complete the activity? --Apportion methods. --Parametric estimation methods. --Ratio methods. --Bottom-up estimation methods.

-Bottom-up estimation methods. **Correct. Bottoms-up estimation methods require that estimates be made at the detailed work activity level of the WBS by functional experts with knowledge of the required/available resources to complete the activity.