Chapter 6, Chapter 7
The arrows in a network diagram represent missed milestones in a project.
False
Estimates should become more accurate as time progresses.
True
It is important for project managers to understand that every cost estimate is unique.
True
What does the process of controlling costs primarily involve?
managing changes to the project budget
Which type of dependencies are inherent in the nature of work being performed on a project?
mandatory
The formulas for variances and indexes start with EV, the earned value.
True
After defining project activities, the next step in project schedule management is developing the schedule.
False
In a Gantt chart, thick black bars represent milestones achieved in a project.
False
Supporting details for an estimate include the ground rules and assumptions used in creating the estimate.
True
The critical path on a project can change as the project progresses.
True
If cost variance is a positive number, it means that performing the work costs more than planned.
False
If the cost performance index (CPI) is less than 100 percent, the project is under budget.
False
Milestones are easy to achieve and are always achieved through one main activity.
False
A schedule management plan includes information which describes the format and frequency of schedule reports required for the project.
True
Which document is most likely to include planned project start and end dates which serve as the starting points for a detailed schedule?
project charter
What type of management includes the processes required to ensure that a project team completes a project within an approved budget?
project cost management
In project schedule management, which process primarily involve identifying and documenting the relationships between project activities?
sequencing activities
Which is a similarity between scope control and schedule control?
Both are portions of the integrated change control process under project integration management.
27. If the cost performance index (CPI) is less than 100 percent, the project is under budget.
False
A disadvantage of using Gantt charts is that they do not provide a standard format for displaying planned project schedule information.
False
One of PERT's main disadvantages is that it does not address the risk associated with duration estimates.
False
Which technique involves doing activities in parallel that one would normally do in sequence?
Fast tracking
Which provide a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in a calendar format?
Gantt charts
Which is true of the schedule performance index (SPI)?
It can be used to estimate the projected time to complete the project.
Which is true of a finish-to-finish dependency?
It is a dependency in which the "from" activity must be finished before the "to" activity can be finished.
Which is true of earned value?
It is an estimate of the value of the physical work actually completed.
Which network diagramming technique uses boxes to represent activities?
PDM
What is an accurate difference between the Program Evaluation and Review Technique (PERT) and critical path method (CPM)?
PERT uses different duration estimates whereas CPM uses one specific duration estimate.
Which law states that work expands to fill the time allowed?
Parkinson's Law
Which is most likely to be a reason for inaccuracies in information technology cost estimates?
People lack estimating experience.
Which statement is true of contingency reserves?
They allow for future situations that can be partially planned for.
Which statement is true of analogous estimates?
They are most reliable when previous projects are similar in fact with current projects.
Which statement is true of bottom-up estimates?
They are time-intensive and expensive to develop.
Which statement is true of tangible costs?
They can be easily measured.
Which is true of dummy activities?
They have long durations.
A Tracking Gantt chart is based on the percentage of work completed for project tasks or the actual start and finish dates.
True
A cost management plan can include organizational procedures links, control thresholds, and process descriptions.
True
A dependency pertains to the sequencing of project activities or tasks.
True
Which is a similarity between the crashing and fast tracking?
both can shorten the time needed to finish a project
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?
bottom-up
Which is an output of schedule control?
change requests
The main goal of which process is to produce a cost baseline for measuring project performance and project funding requirements?
cost budgeting
Which is an output of the process of controlling costs?
cost forecasts
Which technique is used for making cost and schedule trade-offs to obtain the greatest amount of schedule compression for the least incremental cost?
crashing
Which technique involves network diagramming and is used primarily to predict total project duration?
critical path analysis
Which type of estimate should be used if the cost estimate for a project is used a basis for contract awards and performance reporting?
definitive
In project schedule management, the ultimate goal of which process is to provide a basis for monitoring project progress for the time dimension of the project?
developing a schedule
Variances are calculated by subtracting the actual cost from which value?
earned value
Which statement best defines cost variance?
earned value minus the actual cost
Which statement best defines schedule variance?
earned value minus the planned value
After working with key stakeholders to define activities and calculate their resources, what is the next process in project schedule management?
estimate the duration of activities.
What is the purpose of a cost performance index (CPI)?
estimate the projected cost of completing the project
Which dependencies involve relationships between project and non-project activities?
external
How does critical chain scheduling protect tasks on the critical chain from being delayed?
feeding buffers
Which dependencies do AOA network diagrams use?
finish-to-start
What term is used for the amount of time an activity can be delayed without delaying the early start date of any immediately following activities?
free slack
What is the latest possible time an activity might begin without delaying the project finish date?
late start date
The critical path is the _____ path through a network diagram, and it represents the _____ amount of slack or float.
longest; shortest
The additional percentage or dollar amount by which actual costs exceed estimates is known as a(n) _____.
overrun
Which type of estimating uses project characteristics in a mathematical model to estimate project costs?
parametric
What is another term used for budget?
planned value
Where would a draft schedule for a project most likely be found?
project charter
Which is one of the main outputs of estimating activity resources process?
project documents update
How are profits best defined?
revenues minus expenditures
During which relationship is the "from" activity unable start until the "to" activity is started?
start-to-start
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?
sunk
What term is used for the amount of time an activity can be delayed from its early start without delaying the planned project finish date?
total slack
Which is an input of the process of controlling costs?
work performance data
A drawback of the project management software is that it does not have the capacity to calculate the critical path(s) for a project.
False
Critical chain scheduling assumes that resources multitask and maximizes multitasking.
False
In a critical path analysis, the shortest path is what drives the completion date for the project.
False
In a network diagram, it is mandatory for every item on the WBS to be shown instead of only those activities with dependencies.
False
In project schedule management, the next step after sequencing activities is to define these activities.
False
In project schedule management, the primary output of defining activities is a schedule management plan.
False
Intangible costs can be easily measured in monetary terms.
False
It is important for project managers to focus on indirect costs because they can be easily controlled.
False
The project management plan and project funding requirements are inputs of the process of controlling costs.
True
Overrun is the additional percentage amount by which estimates exceed actual costs.
False
Start-to-finish relationships are the most frequently used dependencies between activities.
False
A drawback of the precedence diagramming method is that it cannot be used unless dummy activities are employed.
False
Analogous estimates are called activity-based costing.
False
Analogous estimates are the most accurate technique to estimate costs.
False
The main disadvantage of crashing is that it lengthens the time needed to finish a project.
False
The primary output of the planning cost management process is a change request.
False
The final process in project schedule management is developing the schedule.
False
When deciding what projects to invest in or continue, one should include sunk costs.
False
Project managers must conduct cash flow analysis to determine net present value.
True
Spreadsheets are a common tool for cost estimating, cost budgeting, and cost control.
True
Contingency reserves are also known as unknown unknowns.
False
The technique of fast tracking can result in lengthening the project schedule.
True
To define activities, the project team should start with reviewing the schedule management plan, scope baseline, enterprise environmental factors, and organizational processes.
True
A merge occurs when one node precedes multiple nodes.
False
A negative schedule variance means that it took less time than planned to perform the work.
False
Which statement best describes the difference between an activity list and an activity attribute?
An activity attribute provides more schedule-related information about each activity than an activity list.
A backward pass through the network diagram determines the early start and early finish dates for each activity.
False
A budgetary estimate is the most accurate of the three types of estimates.
False
Which method is used for determining the estimated annual costs and benefits for a project?
Cash flow analysis
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?
Electricity used to run its factories
Which costs are difficult to measure in monetary terms?
Intangible costs
Which statement is true of a order of magnitude estimate?
It provides an estimate of what a project will cost.
Which reserves allow for future situations that are unpredictable?
Management reserves
Which type of estimate uses the actual cost of a previous, similar project as the basis for estimating the cost of the current project?
analogous estimates
What is a rough order of magnitude estimate also referred to as?
ballpark
What type of estimate is a cost estimation tool used to allocate money into an organization's budget?
budgetary
In an AOA network diagram, what occurs when two or more activities follow a single node?
bursts
In project schedule management, which process involves estimating the number of work periods that are needed to complete individual activities?
estimating activity durations
In project schedule management, which process primarily involves checking and managing changes to the project schedule?
controlling the schedule
Which process results in a cost baseline as a main output?
cost budgeting
Work performance information and cost forecasts are main outputs of which process?
cost control
In project schedule management, the main goal of which process is to ensure that the project team has complete understanding of all the work they must do as part of the project scope so they can start scheduling the work?
defining activities
In project schedule management, which process generates the main outputs of an activity list, activity attributes, and a milestone list?
defining activities
Which process in project schedule management involves identifying the specific tasks that the project team members and stakeholders must perform to produce the project deliverables?
defining activities
What type of estimate is used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs?
definitive
Which process involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance?
determining the budget
In project schedule management, what is the next step after defining project activities?
determining their dependencies
In project schedule management, which process involves analyzing activity sequences, activity resource estimates, and activity duration estimates to create the project schedule?
developing the schedule
Newtech Inc. hires John for the position of a software programmer to work on their new project. Salary paid to John by Newtech Inc. would be an example of which type of costs?
direct
Which dependencies are sometimes referred to as soft logic and should be used with care because they may limit later scheduling options?
discretionary
Which process involves developing an approximation of the costs of resources needed to complete a project?
estimating costs
What term is used for analogous estimates?
top-down
Which process helps develop an accurate projection of a project's financial expenses and benefits?
life cycle costing
Which term is used for a significant event on a project that normally has no duration?
milestone
Which statement is true regarding indirect costs?
not directly related to the products or services of a project.
What is the first step in project cost management?
plan how costs will be managed
What is the first process involved in project schedule management?
planning schedule management
In project schedule management, which is an output of controlling the schedule?
project management plan update
Project schedules grow out of basic documents such as the project charter.
True
A schedule performance index of one means that the project is on schedule.
True
An activity is an element of work that has an expected duration, cost, and resource requirements.
True
Budgetary estimates are made even before a project is officially started.
True
Definitive estimates are made one year or less prior to project completion.
True
Determining the budget involves allocating the project cost estimate to individual work items over time.
True
IT project managers must be able to present and discuss project information both in financial and technical terms.
True
If an important supplier goes out of business, management reserves can be set aside to cover the resulting costs.
True
In a bottom-up estimate, the size of the individual work items is one of the factors that drives the accuracy of the estimates.
True
It is important for the activity list and activity attributes to be in agreement with the work breakdown structure.
True
Knowing the amount of float allows project managers to know whether a project schedule is flexible.
True
Network diagrams are the preferred technique for showing activity sequencing.
True
One of the reasons why project cost estimates are inaccurate is because human beings are biased toward underestimation.
True
Parametric models are reliable when the models are flexible in terms of the project's size.
True