Check Your Knowledge: Chapter 10 Budgeting Projects

_____ is the process of monitoring the project costs and managing changes to the cost baseline.

a. Control cost

Project teams should consider economic factors as they construct their budget. Which of these is NOT one of those economic factors to be considered during budgeting?

a. Direct costs

The task cost value is the sum of all assignment cost values, plus any task's _____ cost value.

a. fixed

________ is "an estimating technique in which an algorithm is used to calculate cost or duration based on historical data and project parameters."

b. Parametric estimating

In Agile projects, at what point are budget and definitive estimates created?

d. Repeatedly for each release and iteration

Agreed-upon estimates are aggregated into a cost budget which will become the baseline for a predictive project. The budget should include all of the below EXCEPT_____.

d. list of identified risks

A project cost management plan needs to be consistent and aligned with the methods of the __________.

d. parent organization

Using _____________ level cost estimates, a projected duration and cost estimate of the entire project can be provided to project stakeholders when later project stage details are not known.

d. summary

In a time-phased project budget, where the cumulative cost is shown for the project at each point in time, the cumulative cost curve approximates a(n) ___ shape.

b. S

__________ costs are those that remain the same regardless of the size or volume of work.

c. Fixed

Variations in project costs can be partially explained by the presence of certain events associated with a project. _______ are events discovered during planning that can be estimated directly.

c. Known knowns

In Agile projects, cost uncertainties for specific project components are handled differently from plan-driven projects. Which of these is NOT an Agile approach for handling cost uncertainties during budgeting?

c. Value engineering

The approved project budget with contingency reserves serves as a(n) _________ for project control.

c. baseline

The ________ defines the cost baseline, modifies it whenever necessary, and uses it for monitoring and controlling costs.

b. cost management plan