project management chapter 9 quiz

Consider the time-phased budget presented in Figure 9-1. What is the cumulative project budget through the end of April? $38,000 $ 8.000 $20,000 $46,000

$46,000

Recurring costs tend to occur during project planning and closing while nonrecurring costs tend to occur during project execution. True False

False

All of the following items describe an aspect of life cycle costing EXCEPT: Life cycle cost includes the cost of creating the project and using the result. Project managers may need to consider product disposition costs to calculate total life cycle cost. Life cycle cost only includes the project cost from initiating through closing Many project selection decisions are made based upon life cycle cost.

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

Estimate cost is the process of developing an approximation of the monetary resources needed to complete project activities. True False

True

Most projects will employ bottom-up estimating at some point to serve as a basis for estimating cash flow needs and for controlling the project. False True

True

Special cause variation arises when something out of the ordinary occurs. True False

True

Which estimating technique uses historical data from a similar project as a starting point for creating a time or cost estimate? Monte Carlo estimating parametric estimating analogous estimating bottom-up estimating

analogous estimating

What type of cost is incurred when a project must be conducted faster than normal, and overtime for workers and / or extra charges for rapid delivery from suppliers are necessary? nonrecurring costs marginal costs variable costs. expedited costs Question 10 0.5 / 0.5 pts

expedited costs

Activity based costing allocates indirect costs to fixed costs based on different types of cost drivers. Which of the following is one of the cost drivers that serve as a basis of cost allocation? direct equipment costs quantity of materials used number of labor hours number of units produced

number of units produced

Costs that repeat as project work continues such as writing code are appropriately classified as: fixed costs. nonrecurring costs. indirect costs. recurring costs

recurring costs