Ch. 10 Budgeting

True

Cost estimating is linked very closely with scope, schedule and resource planning.

number of units produced

Activity based costing allocates overhead (indirect costs) to fixed costs based upon four different types of drivers. Which of the following is one of the cost drivers that serves as a basis of cost allocation?

Life cycle cost only includes the project cost from initiating through closing

All of the following items describe an aspect of life cycle costing EXCEPT:

True

Fixed costs remain the same regardless of the size or volume of work, while variable costs vary directly with volume of use.

False

Inflating the value of future revenue and cost streams to account for the time value of money enables better project decisions.

True

Plan Cost Management is the process to determine how to plan, estimate, and control project costs.

True

Project managers should not lie to themselves or others regarding project costs.

executive salaries, utilities and insurance

Projects often include indirect costs that are necessary to keep the organization running, but are not associated with one specific project. Which of the following items are most typically considered to be indirect costs?

True

Vendor bid analysis is used to determine whether the price being asked by the vendors appears to be reasonable.

Reserve

Which of the following terms best describes extra money in the project budget to be used if necessary - usually if a risk event occurs?