OMIS Final Study

Analogous estimates are the most accurate technique to estimate costs.

False

When deciding what projects to invest in or continue, one should include sunk costs.

False

35. ____ involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance. a. Determining the budget b. Consolidation of costs c. Controlling costs d. Estimating costs

a. Determining the budget

66. ____ is the earned value minus the planned value. a. SV b. CV c. CPI d. SPI

a. SV

44. ____ should be forgotten. a. Sunk costs b. Indirect costs c. Direct costs d. Intangible costs

a. Sunk costs

49. A ____ is used to allocate money into an organization's budget. a. budgetary estimate b. definitive estimate c. rough order of magnitude estimate d. final estimate

a. budgetary estimate

58. The project management plan, project funding requirements, work performance data, and organizational process assets are inputs for the process of ____. a. controlling costs b. budgeting costs c. consolidating costs d. estimating costs

a. controlling costs

56. The main goal of the ____ process is to produce a cost baseline for measuring project performance and project funding requirements. a. cost budgeting b. cost consolidation c. cost control d. cost estimating

a. cost budgeting

According to McClelland's acquired-needs theory, people with a high need for _____ desire harmonious relationships with other people and need to feel accepted by others. affiliation, self actualization, power, achievement

affiliation

61. The ____ is the ratio of actual work completed to the percentage of work planned to have been completed at any given time during the life of the project or activity. a. AC b. EV c. RP d. PV

c. RP

41. ____ are those costs that an organization can easily measure in dollars. a. Intangible costs b. Direct costs c. Tangible costs d. Indirect costs

c. Tangible costs

43. ____ are costs that are not directly related to the products or services of the project, but are indirectly related to performing the project. a. Intangible costs b. Tangible costs c. Direct costs d. Indirect costs

d. Indirect costs

33. ____ includes the processes required to ensure that a project team completes a project within an approved budget. a. Cost budgeting b. Cost estimating c. Cost control d. Project cost management

d. Project cost management

68. The ____ is the ratio of earned value to planned value and can be used to estimate the projected time to complete the project. a. SV b. CV c. CPI d. SPI

d. SPI

39. Since organizations depend on reliable information technology, there are also huge costs associated with ____. a. work time b. technical planning c. uptime d. downtime

d. downtime

The bottom four needs in Maslow's structure are referred to as _____ needs. self actualization deficiency safety growth

deficiency

If the cost performance index (CPI) is less than 100 percent, the project is under budget.

False

In an earned value chart, when the actual cost line is right on or above the earned value line, it indicates that costs are less than planned.

False

People with a high need for _____ seek to excel and tend to avoid both low-risk and high-risk situations to improve their chances for achieving something worthwhile. affiliation, security, power, achievement

achievement

Key outputs of _____ process are project staff assignments, resource calendars, and project management plan updates. managing the project team acquiring the project team developing the project team planning the human resource plan

acquiring the project team

_____ involves assigning the needed personnel to work on the project. planning human resource management developing the project team acquiring the project team managing the project team

acquiring the project team

59. ____ is a project performance measurement technique that integrates scope, time, and cost data. a. Cost baseline b. Earned value management c. Constructive cost modeling d. Parametric modeling

b. Earned value management

46. ____ allow for future situations that are unpredictable. a. Contingency reserves b. Management reserves c. Known unknowns d. Indirect reserves

b. Management reserves

36. ____ is the ratio of revenues to profits. a. Profit b. Profit margin c. Cost structure d. Cost margin

b. Profit margin

38. ____, with assistance from financial experts in their organizations, should create estimates of the costs and benefits of the project for its entire life cycle. a. Financial managers b. Project managers c. Budget managers d. System managers

b. Project managers

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

b. definitive estimate

55. If the cost estimate will be the basis for contract awards and performance reporting, it should be a ____ and as accurate as possible. a. budgetary estimate b. definitive estimate c. rough order of magnitude estimate d. final estimate

b. definitive estimate

42. Project managers should focus on ____, since they can control them. a. sunk costs b. indirect costs c. direct costs d. intangible costs

c. direct costs

47. A ____ provides an estimate of what a project will cost. a. budgetary estimate b. definitive estimate c. rough order of magnitude estimate d. final estimate

c. rough order of magnitude estimate

40. ____ is a method for determining the estimated annual costs and benefits for a project and the resulting annual cash flow. a. Life cycle costing b. Profit margin analysis c. Cost estimating d. Cash flow analysis

d. Cash flow analysis

According to McClelland's acquired-needs theory, people who need personal _____ want to direct others and can be seen as bossy. affiliation, advancement, power , achievement

power

According to Thamhain and Wilson, _____ is the ability to improve a worker's position. penalty, assignment , expertise, promotion

promotion

According to Herzberg, which of the following is a motivational factor? recognition, salary, training, health benefits

recognition

_____ is based on an individual's personal charisma. legitimate power, coercive power, reward power, referent power

referent power

A(n) _____ is a column chart that shows the number of resources assigned to a project over time. responsibility assignment matrix, resource histogram, raci charts, organizational breakdown structure

resource histogram

_____ is best known for developing Theory X and Theory Y. frederrick Herzberg, david mcclelland, abraham maslow, douglas mcgregor

Douglas Mcgregor

A budgetary estimate is the most accurate of the three types of estimates.

False

A negative schedule variance means that it took lesser than planned to perform the work.

False

Analogous estimates are called activity based costing.

False

Budgetary estimates are made even before a project is officially started.

False

Contingency reserves are also known as unknown unknowns.

False

If cost variance is a positive number, it means that performing the work costs more than planned.

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

Overrun is the additional percentage amount by which estimates exceed actual costs.

False

The primary output of the planning cost management process is a change request.

False

The _____ presents subjects with a series of ambiguous pictures and asks them to develop a spontaneous story for each picture, assuming they will project their own needs into the story. ram, tat, mbti, raci

TAT (thematic apperception test)

Managers who follow _____ assume that the average worker wants to be directed and prefers to avoid responsibility. theory z, theory x, theory y, theory k

Theory X

A schedule performance index of one means that the project is on schedule.

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

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 project managers to understand that every cost estimate is unique.

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

The formulas for variances and indexes start with EV, the earned value.

True

The project management plan and project funding requirements are inputs of the process of controlling costs.

True

70. Using simplified percentage complete amounts for a one-year project with weekly reporting and an average task or work packet size of one week, you can expect about a(n) ____ percent error rate. a. 1 b. 5 c. 11 d. 15

a. 1

63. The ____ is the total direct and indirect costs incurred in accomplishing work on an activity during a given period. a. AC b. EV c. RP d. PV

a. AC

45. ____ allow for future situations that may be partially planned for. a. Contingency reserves b. Management reserves c. Unknown unknowns d. Direct reserves

a. Contingency reserves

64. Variances are calculated by subtracting the actual cost or planned value from ____. a. EV b. AC c. PV d. RP

a. EV

_____ a highly respected psychologist, rejected the dehumanizing negativism of psychology and proposed the hierarchy of needs theory. sign freud abraham maslow carl jung philip zimbardo

abraham maslow

53. A(n) ____ might provide an estimate of $50 per line of code for a software development project based on the programming language the project is using, the level of expertise of the programmers, the size and complexity of the data involved, and so on. a. analogous cost estimate b. parametric model c. bottom-up estimate d. reserve analysis

b. parametric model

32. Three separate surveys of software project cost overruns found that the average cost overrun for all of the projects in their survey samples (not just unsuccessful projects) were ____ percent. a. 13-14 b. 23-24 c. 33-34 d. 43-44

c. 33-34

69. The ____ is an estimate of what it will cost to complete the project based on performance to date. a. CPI b. SV c. EAC d. SPI

c. EAC

_____ involves using punishment, threats, or other negative approaches to get people to do things they do not want to do. legitimate power, coercive power, reward power, referent power

coercive power

51.____ use the actual cost of a previous, similar project as the basis for estimating the cost of the current project. a. Actual estimates b. Parametric estimates c. Bottom-up estimates d. Analogous estimates

d. Analogous estimates

60. The ____ is that portion of the approved total cost estimate planned to be spent on an activity during a given period. a. AC b. EV c. RP d. PV

d. PV

The main outputs of the ____ process are team performance assessments and enterprise environmental factors updates. managing the project team acquiring the project team developing the project team human resource plan

developing the project team

_____ involves building individual and group skills to enhance project performance developing the human resource plan developing the project team acquiring the project team managing the project team

developing the project team

Recognizing an employee as the "Star Performer of the Month" would be satisfying the _____ need of the Maslow's hierarchy of needs. esteem self actualization physiological safety

esteem

The acquiring of the project team is a subprocess associated with the _____ process of project human resource management. executing controlling and monitoring planning initiating

executing

The first step in the framework for defining and assigning work is _____. defining how the work will be accomplished, breaking down the work into manageable elements, finalizing the project requirements, assignment work responsibilities

finalizing the project requirements

_____ is best known for distinguishing between motivational factors and hygiene factors when considering motivation in work settings. frederick herzberg, davide mcclelland, abraham maslow, douglas mcgregor

frederick herzberg

The highest level of needs in Maslow's structure is referred to as a _____ need. deficiency growth safety physiological

growth

____ involves tracking team member performance, motivating team members, providing timely feedback, resolving issues and conflicts, and coordinating changes to help enhance project performance. developing the human resource plan developing the project team acquiring the project team managing the project team

managing the project team

_____ refers to matching certain behaviors of the other person. empathetic listening, rapport, synergy, mirroring

mirroring

At the bottom of Maslow's structure are _____ needs. esteem self actualization physiological social

physiological

_____ refers to the amount of individual resources an existing schedule requires during specific time periods. resource loading, resource leveling, resource allocation, resource histogram

resource loading

_____ involves using incentives to induce people to do things. legitimate power, coercive power, reward power, referent power

reward power

___ is at the top of Maslow's hierarchy of needs. esteem self actualization physiological social

self actualization

_____ emphasizes things such as job rotation, broadening of skills, generalization versus specialization, and the need for continuous training of workers. theory w, theory x, theory y, theory z

theory z

A cost management plan can include organizational procedures links, control thresholds, and process descriptions.

True

Estimates should become more accurate as time progresses.

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

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

Supporting details for an estimate include the ground rules and assumptions used in creating the estimate.

True

According to Thamhain and Wilson, _____ is the legitimate hierarchical right to issue orders. authority, achievement, expertise, self actualization

authority

65. ____ is the earned value minus the actual cost. a. SV b. CV c. CPI d. SPI

b. CV

62. The ____ is an estimate of the value of the physical work actually completed. a. AC b. EV c. RP d. PV

b. EV

54. Tom DeMarco, a well-known author on software development, suggests ____ reasons for the inaccuracies of many information technology project cost estimates and some ways to overcome them. a. three b. four c. five d. six

b. four

31. The Standish Group's CHAOS studies reported an average cost overrun for unsuccessful IT projects ranged from 180 percent in 1994 to ____ percent in 2004. a. 28 b. 43 c. 56 d. 73

c. 56

52. ____ involve estimating individual work items or activities and summing them to get a project total. a. Actual estimates b. Parametric estimates c. Bottom-up estimates d. Analogous estimates

c. Bottom-up estimates

67. The ____ is the ratio of earned value to actual cost and can be used to estimate the projected cost of completing the project. a. SV b. CV c. CPI d. SPI

c. CPI

37. ____ helps you develop an accurate projection of a project's financial costs and benefits. a. Profit cycle costing b. Financial costing c. Life cycle costing d. Profit margin costing

c. Life cycle costing

57. A ____ is a time-phased budget that project managers use to measure and monitor cost performance. a. budget baseline b. ledger c. cost baseline d. cost line

c. cost baseline

48. A ____ is done very early in a project or even before a project is officially started. a. budgetary estimate b. definitive estimate c. rough order of magnitude estimate d. final estimate

c. rough order of magnitude estimate

34. ____ involves developing an approximation or estimate of the costs of the resources needed to complete a project. a. Determining the budget b. Consolidation of costs c. Controlling costs d. Estimating costs

d. Estimating costs