UHD - MIS4310 - Quiz 7

What does the process of controlling costs primarily involve? a. finalising the procedures for project costs b. determining the policies for project costs c. determining a basis for estimates d. managing changes to the project budget

d.

Which process results in a cost baseline as a main output? a. cost estimating b. cost controlling c. cost planning d. cost budgeting

d.

Which type of estimate should be used if the cost estimate for a project is used a basis for contract awards and performance reporting? a. budgetary b. analogous c. rough order of magnitude d. definitive 5 points

d.

Which statement is true of tangible costs? a. They can be easily measured. b. Their examples include goodwill and prestige. c. They cannot be calculated in monetary terms. d. They are difficult to quantify.

a

Variances are calculated by subtracting the actual cost from which value? a. earned value b. rate of performance c. schedule variance d. planned value

a.

What is a rough order of magnitude estimate also referred to as? a. budgetary b. ballpark c. final d. definitive

a.

What type of estimate is a cost estimation tool that involves estimating individual work items or activities and summing them to get a project total? a. bottom-up b. analogous c. budgetary d. parametric

a.

Which is an output of the process of controlling costs? a. cost forecasts b. scope baselines c. basis of estimates d. project funding requirements

a.

Which type of estimate uses the actual cost of a previous, similar project as the basis for estimating the cost of the current project? a. analogous estimates b. parametric estimates c. bottom-up estimates d. definitive estimates 5 points

a.

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 which costs? a. recurring b. sunk c. intangible d. direct

b.

What is the first step in project cost management? a. allocate project cost estimates to individual material resources b. plan how costs will be managed c. develop several estimates of costs for different types of resources d. control project costs and monitor cost performance

b.

What term is used for analogous estimates? a. parametric b. top-down c. budgetary d. bottom-up

b.

Which is true of the schedule performance index (SPI)? a. It is the ratio of planned value to actual costs. b. It can be used to estimate the projected time to complete the project. c. It means that a project is ahead of schedule if SPI is lesser than one or hundred percent. d. It means that a project is behind schedule if an SPI is greater than one.

b.

Which method is used for determining the estimated annual costs and benefits for a project? a. Present value analysis b. Cash flow analysis c. Requirements analysis d. Critical path analysis

b.

Which statement is true of analogous estimates? a. Their main disadvantage is that they cost more than other techniques. b. They are most reliable when previous projects are similar in fact with current projects. c. They are the only technique which do not require expert judgement. d. They use project characteristics in a mathematical model to estimate project costs.

b.

Which statement is true of contingency reserves? a. They are also known as unknown unknowns. b. They allow for future situations that can be partially planned for. c. They allow for dollar amounts to be used to cover existing, fixed costs. d. They are not included in a cost baseline.

b.

Which type of estimating uses project characteristics in a mathematical model to estimate project costs? a. bottom-up b. parametric c. analogous d. rough order of magnitude estimating

b.

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 would be an example of an indirect cost? a. Salary paid to factory workers b. Cost of machines to produce shoes c. Electricity used to run its factories d. Cost of leather used to manufacture shoes

c.

What is the purpose of a cost performance index (CPI)? a. indicate that a project is under budget if CPI is less than one b. estimate the ratio of earned value to planned value c. estimate the projected cost of completing the project d. indicate that the planned and actual costs are equal if CPI is more than one

c.

What type of estimate is used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs? a. final b. rough order of magnitude c. definitive d. budgetary

c.