Project management Exam 2

A typical statement in actual practice is that estimates should have a probability of being met ______ of the time.

95%

Which of the following correctly calculates an activity's cost slope? A. (normal cost-crash cost)/(normal time-crash time) B. (crash cost-normal cost)/(normal time-crash time) C. (normal time-crash time)/(crash cost-normal cost) D. (normal time-crash time)/(normal cost-crash cost) E. (crash cost-normal cost)/(crash time-normal time)

B. (crash cost-normal cost)/(normal time-crash time)

Funds that are for identified risks that have a low probability of occurring and that decrease as the project progresses are called ______ reserves. A. Management B. Budget C. Contingency D. Padded E. Just in case

B. Budget

An activity's cost slope represents an activity's A. Total cost per unit of time B. Cost per unit of time C. Indirect cost per unit of time D. Both B and C are correct E. A, B, and C are all correct

B. Cost per unit of time

In a learning curve, the improvement ratio is applied to which of the following items? A. Direct materials B. Direct labor C. Overhead D. Both A and B are correct E. A, B, and C are all correct

B. Direct labor

Which of the following correctly calculates the early finish for an activity? A. LS + DUR B. ES + DUR C. LF + DUR D. ES + SL E. LF + SL

B. ES + DUR

This risk assessment tool is a variation of the risk severity matrix that includes the ease of detection for each of the identified risks. A. PERT simulation B. FMEA analysis C. Ratio/range analysis D. Probability analysis E. Semi-quantitative analysis

B. FMEA analysis

Using a special color copy machine for a tradeshow publication illustrates the concept of A. Laddering B. Hammock activities C. Critical path D. Concurrent engineering E. Forward pass

B. Hammock activities

Learning curves are more likely to apply in situations where most of the costs are A. Materials B. Labor C. Overhead D. Evenly spread over materials, labor, and overhead E. All of these are equally likely situations for learning curves

B. Labor

The critical path in a project network is the A. Shortest path through the network B. Longest path through the network C. Network path with the most difficult activities D. Network path using the most resources E. Network path with the most merge activities

B. Longest path through the network

Which of the following would not be considered a threat? A. Inflation B. Meeting the project schedule C. International disruptions D. Economic conditions E. Competition

B. Meeting the project schedule

Typically an activity on a project network represents A. A single work package B. One or more tasks from a work package C. Several work packages D. A sub-deliverable E. A cost account

B. One or more tasks from a work package

The project direct-cost line near the normal point is usually: A. Sloped steeply B. Relatively flat C. Rising D. Falling E. Gently sloped

B. Relatively flat

The risk associated with one of the key members being struck by lightning would most likely be handled by which of the following? A. Mitigating B. Retaining C. Ignoring D. Transferring E. Sharing

B. Retaining

Cost slope can be determined by dividing the A. Run by the rise B. Rise by the run C. Crash cost by the normal cost D. Normal cost by the crash cost E. Both B and C are correct

B. Rise by the run

The attempt to recognize and manage potential and unforeseen trouble spots that may occur when a project is implemented is known as A. Risk forecasting B. Risk management C. Contingency planning D. Scenario analysis E. Disaster protection

B. Risk management

The easiest and most commonly used technique for analyzing risks is _____ analysis. A. Probability B. Scenario C. Payback D. Risk/reward E. Impact

B. Scenario

Project costs are typically viewed from all of the following except: A. Scheduled B. Sunk C. Actual D. Committed E. All of these are correct

B. Sunk

Which of the following methods is not considered a top-down approach to estimating project time and cost? A. Ratio B. Template C. Apportion D. Function point E. Learning curve

B. Template

Design flaws being revealed after the fact, extreme weather conditions, and accidents occurring are examples of: A. Hidden interaction costs B. Things going wrong on a project C. Normal conditions not applying D. Changes in project scope E. None of these are correct

B. Things going wrong on a project

Intense global competition and rapid technological advances create pressure on developing projects rapidly. This is an example of reducing project duration caused by: A. Imposed project deadlines B. Time to market C. Unforeseen project delays D. High overhead E. Incentive contracts

B. Time to market

Information to develop a project network is collected from the A. Organization breakdown structure B. Work breakdown structure C. Budget D. Project proposal E. Responsibility matrix

B. Work breakdown structure

On a project network, the activity times are derived from the A. Organization breakdown structure B. Work packages C. Budget D. Project proposal E. Responsibility matrix

B. Work packages

Which of the following represents an activity on an AON project network? A. An arrow B. A line C. A node D. Both A and B are correct E. A, B, and C are all correct

C. A node

The cost to prepare bottom-up estimates will typically run how much more than the costs to prepare the top-down estimates? A. About the same B. About twice as much C. About three times as much D. About four times as much E. About five times as much

C. About three times as much

Part of a project is to Develop Product Specifications. This is best classified as a(n) A. Event B. Path C. Activity D. Node E. Milestone

C. Activity

A/an _________ activity has more than one dependency arrow flowing from it. A. Parallel B. Critical path C. Burst D. Merge E. Independent

C. Burst

As one gets further and further into the project, a manager obtains a better understanding of what needs to be done to accomplish the project. This may lead to major changes in project plans and costs. This is an example of: A. Hidden interaction costs B. Things going wrong on a project C. Changes in project scope an plans D. Strategic misrepresentation E. Normal conditions not applying

C. Changes in project scope and plans

If, for some reason, the project must be expedited to meet an earlier date, which of the following actions would the project manager take first? A. Check to see which activities cost the least B. Check to see which activities have the longest duration C. Check to see which activities are on the critical path D. Check to see which activities have the most slack E. Check to see which activities have the highest risk

C. Check to see which activities are on the critical path

All of the following are included in the risk identification process except A. Customers B. Subcontractors C. Competitors D. Vendors E. None of these are included

C. Competitors

Which of the following is not one of the basic rules to follow when developing project networks? A. An activity cannot begin until all preceding activities have been completed B. Each activity must have a unique identification number C. Conditional statements are allowed but looping statements are not allowed D. An activity identification number must be larger than that of any preceding activities E. Networks flow from left to right

C. Conditional statements are allowed but looping statements are not allowed

The shortest possible time an activity can be completed realistically is called ________ time. A. Expedited B. Accelerated C. Crash D. Optimistic E. Optimal

C. Crash

________ costs are incurred when completing an activity in its realistically shortest time. A. Normal B. Reserve C. Crash D. Accelerated E. Expedited

C. Crash

Which of the following is not considered a project indirect cost? A. Supervision B. Consultants C. Equipment D. Interest E. All of these are considered project indirect costs

C. Equipment

If testing cannot be completed any earlier than four days after the prototype is built, which of the following type of lag exists? A. Start to Start B. Start to Finish C. Finish to Finish D. Finish to Start E. Any of these could be correct

C. Finish to Finish

The initial step in the risk management process is to A. Determine the level of acceptable risk B. Assess the risk potential C. Identify the risks D. Set aside budget funds for managing the risks E. Appoint a risk manager

C. Identify the risks

Which of the following is not one of the potential responses to a specific risk event? A. Mitigating B. Retaining C. Ignoring D. Transferring E. Sharing

C. Ignoring

Which of the following correctly calculates the late start for an activity? A. EF - DUR B. ES - DUR C. LF - DUR D. ES - SL E. LF - SLACK

C. LF - DUR

The minimum amount of time a dependent activity must be delayed to begin or end is referred to as: A. Hammock B. Laddering C. Lag D. Cushion E. Buffer

C. Lag

Which of the following is not one of the bottom-up approaches to estimating project time and cost? A. Parametric procedures applied to specific tasks B. Estimates for the WBS work packages C. Learning curve D. Template method E. All of these are bottom-up approaches

C. Learning curve

In selecting the best activity to reduce you would first select the activity with the A. Earliest start time B. Steepest slope C. Least steep slope D. Longest duration E. Largest crash time

C. Least steep slope

The accuracy of top-down estimates will typically be in the range of A. Minus 50% to plus 50% B. Minus 0% to plus 75% C. Minus 20% to plus 60% D. Minus 35% to plus 35% E. Minus 10% to plus 30%

C. Minus 20% to plus 60%

Resource shortages, in the form of people, equipment, or materials, is a good example of A. Hidden interaction costs B. Things going wrong on a project C. Normal conditions not applying D. Changes in project scope E. None of these are correct

C. Normal conditions not applying

Which of the following is used to review activity and project risk? A. NPV B. S-curves C. PERT D. Decision trees E. All of these can be used

C. PERT

________ activities must be completed immediately before a particular activity. A. Merge B. Burst C. Predecessor D. Successor E. Critical

C. Predecessor

An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is termed. A. Random chance B. A disaster C. Risk D. Hazard E. Bad luck

C. Risk

The following are all intended uses for Top down estimates except: A. Feasibility/conceptual phase B. Rough time/cost estimate C. Scheduling D. Fund requirements E. Resource capacity planning

C. Scheduling

Adverse weather, design flaws, and equipment breakdown can create negative slack. This is an example of reducing project duration caused by: A. Imposed project deadlines B. Time to market C. Unforeseen project delays D. High overhead E. Incentive contracts

C. Unforeseen project delays

The risk assessment form contains all of the following except A. Likelihood of the risk event occurring B. Potential impact of the risk event C. Who will detect the occurrence of the risk event D. Difficulty of detecting the occurrence of the risk event E. When the risk event may occur

C. Who will detect the occurrence of the risk event

Top-down estimates are most likely to occur during the ______ phase.

Concept

This Top down method simply uses the pooled experience of senior and/or middle managers to estimate the total project duration and cost

Consensus Method

Creating a Project Cost-Duration graph is useful: A. During the pre-project planning phase B. After the project has begun C. After the completion of the project D. Both A and B are correct E. A, B, and C are all correct

D. Both A and B are correct

An AON project network uses which of the following basic building blocks? A. Arrows B. Bars C. Nodes D. Both A and C are correct E. A, B, and C are all correct

D. Both A and C are correct

The backward pass in project network calculations determines the A. Latest time's activities can begin B. Earliest time's activities can be finished C. Critical path D. Both A and C are correct E. A, B, and C are all correct

D. Both A and C are correct

Which of the following is typically included in risk profiles? A. Management aspects B. Market aspects C. Technical aspects D. Both A and C are included E. A, B, and C are all included

D. Both A and C are included

Arrows on an AON project network represent A. An activity B. Project flow C. Dependency D. Both B and C are correct E. Both A and B are correct

D. Both B and C are correct

Project network logic errors include which of the following? A. Activities with less than 1 day duration B. Sequences such as "if test successful build prototype, if failure redesign" C. A sequence such as B succeeds A, C succeeds B, A succeeds C D. Both B and C are network logic errors E. A, B, and C are all network logic errors

D. Both B and C are network logic errors

______ estimates are most likely to use low cost, efficient methods.A. Apportion B. Ratio C. Top-down D. Bottom-up E. All of these are equally likely

D. Bottom-up

Companies like Boeing, Kodak, and IBM are using which of the following for improving the estimating process? A. Adjusting estimates based on individual forecasting abilities B. Benchmarking using the experience of other companies C. Using time and motion studies D. Creating historical databases of previous projects E. All of these are correct

D. Creating historical databases of previous projects

Project costs are generally classified as ______ costs and ______ costs. A. Fixed, Variable B. Fixed, Overhead C. Direct, Overhead D. Direct, Indirect E. Indirect, Overhead

D. Direct, Indirect

Which of the following is NOT one of the recommended guidelines for developing useful work package estimates? A. Estimates should be made by those responsible for the work B. Use several people to estimate the same work C. Estimates should be based on normal conditions D. Estimates should include a normal level of contingency E. Estimates should be independent of other projects

D. Estimates should include a normal level of contingency

The requirement for a freshly poured foundation to cure before beginning construction is an example of which of the following type of lag? A. Start to Start B. Start to Finish C. Finish to Finish D. Finish to Start E. Any of these could be correct

D. Finish to Start

Sean is forecasting the time and cost of developing a customized software program by looking at the number of inputs, outputs, inquires, files, and interfaces. Which of the following methods is he using? A. Ratio B. Template C. Apportion D. Function point E. Learning curve

D. Function point

Which of the following is a good condition for top-down estimating?A. Cost and time important B. Fixed price contract C. Customer wants details D. Internal, small project E. All of these are good conditions for top-down estimating

D. Internal, small project

An activity that has more than one dependency arrow flowing into it is termed a(n) A. Parallel activity B. Critical path C. Burst activity D. Merge activity E. Independent activity

D. Merge activity

The 1999 NASA Mars Climate Orbiter is an example of A. Disaster avoidance through proactive risk management B. Murphy's Law C. Proper use of critical thinking D. Mismanaged risk control E. Using historical records to assess risk

D. Mismanaged risk control

A sequence of connected, dependent activities is termed a(n) A. Critical path B. Parallel path C. Activity chain D. Path E. Dependent chain

D. Path

The approach that begins with a top-down estimate for the project and then refines estimates as the project is implemented is known as ______ method. A. Function point B. Template C. Learning curve D. Phase estimating E. Apportion

D. Phase estimating

Which of the following would be the best method for projects where the final product is not known and the uncertainty is very large? A. Function point B. Template C. Learning curve D. Phase estimating E. Apportion

D. Phase estimating

A risk profile is a list of questions that address traditional areas of uncertainty on a project and are developed from _____________________________. A. The event that might occur in the project B. Chances of the event occurring C. The interaction with other parts of the project or with other projects D. Previous, similar projects E. The magnitude or severity of the event's impact

D. Previous, similar projects

Detailing all identified risks, including descriptions, category, and probability of occurring, impact, responses, contingency plans, owners and current status is called ____________. A. Management reserves B. Change control C. Contingency reserves D. Risk register E. Risk profiles

D. Risk register

Which of the following is not one of the steps in the risk management process? A. Risk response development B. Risk assessment C. Risk identification D. Risk tracking E. Risk response control

D. Risk tracking

If a network has several critical or near-critical paths it is deemed to be: A. Well planned B. The lowest cost alternative C. Resource-constrained D. Sensitive E. Insensitive

D. Sensitive

When some project promoters underestimate the costs of projects and overestimate project benefits in order to win approval A. Hidden interaction costs B. Things going wrong on a project C. Changes in project scope an plans D. Strategic misrepresentation E. Normal conditions not applying

D. Strategic misrepresentation

________ activities are to be completed immediately following a particular activity. A. Merge B. Burst C. Predecessor D. Successor E. Critical

D. Successor

The optimum duration for a project is at the point where ____________________. A. Direct costs are the lowest B. Indirect costs are the lowest C. Direct costs equal indirect costs D. Total project costs are the lowest E. The project changes from time-constrained to resource-constrained

D. Total project costs are the lowest

One common mistake made early in the risk identification process is to A. Not all possibilities are considered B. Participants are over-optimistic C. Participants are over-pessimistic D. Focus on objectives and not on the events that could produce consequences. E. Too much attention is given to past events

D.Focus on objectives and not on the events that could produce consequences.

Which of the following would be considered a direct project cost? A. Labor B. Materials C. Equipment D. Both A and B are direct costs E. A, B, and C are all considered direct costs

E. A, B, and C are all considered direct costs

A common method for shortening the project time is to: A. Adding resources B. Schedule overtime C. Subcontract an activity D. Both A and B are correct E. A, B, and C are all correct

E. A, B, and C are all correct

The forward pass in project network calculations determines the A. Earliest time's activities can begin B. Earliest time's activities can be finished C. Duration of the project D. Both A and B are correct E. A, B, and C are all correct

E. A, B, and C are all correct

Which of the following is provided by a project network but not by the work breakdown structure? A. Dependencies B. Sequencing C. Interrelationships D. Both A and B are correct E. A, B, and C are all correct

E. A, B, and C are all correct

Typical kinds of costs found in a project include A. Direct costs B. Project overhead costs C. General and administrative costs D. Only A and B are included E. A, B, and C are all included

E. A, B, and C are all included

Reasons why estimating time and cost are important include all of the following except: A. To schedule work B. To determine how long the project should take and cost C. To develop cash flow needs D. To determine how well the project is progressing E. All of the above are valid reasons

E. All of the above are valid reasons

Which of the following is not included in a Failure Mode and Effects Analysis? A. Impact B. Probability C. Detection D. Risk value E. All of these are included

E. All of these are included

A Risk Response Matrix contains all of the following except A. Contingency plan B. Trigger C. Who is responsible? D. Response E. All of these are included in the matrix

E. All of these are included in the matrix

Total project costs include all of the following except: A. Supervision B. Administration C. Project manager's salary D. Interest E. All of these are included in total project costs

E. All of these are included in total project costs

Which of the following will correctly calculate the total slack in an activity? A. LS - ES B. LF - EF C. LS - LF D. LF - ES E. Both A and B are correct

E. Both A and B are correct

Crashing a project should occur: A. As early as possible B. As late as possible C. Midway through the project D. Both A and C are correct E. Cannot be determined with the information given

E. Cannot be determined with the information given

A contractor finished a bridge across a lake 18 months early and received more than $6 million for the early completion. This is an example of reducing project duration caused by: A. Imposed project deadlines B. Time to market C. Unforeseen project delays D. High overhead E. Incentive contracts

E. Incentive contracts

Laura is forecasting the time and cost of developing an intranet for a new customer. Her department has completed six such intranets for customers during the last two years. Although the proposed system is about the same size as the others she estimates that it will take about 10 percent less time and money. Which of the following methods is she using? A. Ratio B. Template C. Apportion D. Function point E. Learning curve

E. Learning curve

The two scales of a risk severity matrix measure A. Time, cost B. Cost, schedule C. Impact, cost D. Time, impact E. Likelihood, impact

E. Likelihood, impact

The accuracy of bottom-up estimates will typically be in the range of A. Minus 50% to plus 50% B. Minus 0% to plus 75% C. Minus 20% to plus 60% D. Minus 35% to plus 35% E. Minus 10% to plus 30%

E. Minus 10% to plus 30%

The following are all intended uses for Bottom down estimates except: A. Budgeting B. scheduling C. Resource requirements D. Fund timing E. Resource capacity planning

E. Resource capacity planning

The risk management tool that is divided into three color-coded zones representing major, moderate, and minor risks is the A. Risk assessment form B. Risk responsibility matrix C. Risk scenario assessment D. Risk impact assessment E. Risk severity matrix

E. Risk severity matrix

The chances of a risk event occurring as a project proceeds through its life cycle tends to A. Slowly rise B. Drop sharply and then level out C. Rise sharply and then level out D. Remain about the same E. Slowly drop

E. Slowly drop

Which of the following is a good condition for bottom-up estimating? A.Strategic decision making B. Internal, small project C. Fixed price contract D. High uncertainty E. Both C and D are good conditions for bottom-up estimating

Fixed price contract

Janet is forecasting how much money her department needs to support a new project. She estimates that two people and $25,000 in expenses will cover her needs. Because management typically insists on reducing forecasts by 20 percent, she increases her estimates to allow for that reduction. Which of the following factors is illustrated in this situation?

Padding estimates

A good starting point for developing time and cost estimates is

Past experience

Ed is looking over the actual results of projects and comparing them to what was estimated. He notices that projects that took six months or longer to complete were noticeably more off the estimates. Which of the following factors is he recognizing?

Planning horizon

Which of the following is not one of the factors that need to be considered to improve quality of estimates for project times and costs?

Profit

C. Estimating

The process of forecasting or approximating the time and cost of completing project deliverables is A. Budgeting B. Predicting C. Estimating D. Planning E. Guesstimating

In practice, estimating processes are frequently classified as

Top down/bottom up

Nodes on an AON project network represent: A. An activity B. An event C. Responsibility D. Both B and C are correct E. Both A and B are correct

A. An activity

Which of the following represents an activity on an AOA project network? A. An arrow B. A line C. A node D. Both A and B are correct E. A, B, and C are all correct

A. An arrow

Which of the following top-down methods is used when projects closely follow past projects in features and costs and result in costs being assigned by percentages to major segments of the project? A. Apportion B. Function point C. Phase estimating D. Learning curve E. Consensus

A. Apportion

One of the keys to success in risk identification is A. Critical thinking B. Optimism C. Pessimism D. A "can do" attitude E. All of these are correct

A. Critical thinking

An activity's crash costs include _________ costs. A. Direct B. Indirect C. Overhead D. Both A and B are correct E. A, B, and C are correct

A. Direct

An item on a project network is Design Software Completed. This is best described as a(n) A. Event B. Path C. Activity D. Node E. Milestone

A. Event

Which company utilized concurrent engineering to design a new line of cars and in the process completed its development six months ahead of schedule? A. General Motors B. Chrysler C. Ford D. Nissan E. Toyota

A. General Motors

People working on prototype development needing time to interact with the design engineers after the design is completed is an example of: A. Hidden interaction costs B. Things going wrong on a project C. Normal conditions not applying D. Changes in project scope E. None of these are correct

A. Hidden interaction costs

In the beginning the focus of risk management should be on risks that A. Impact the whole project B. Impact the critical path C. Are known D. Have the greatest cost impact E. Have the greatest schedule impact

A. Impact the whole project

The president of a software company remarks in a speech that new technologically advanced software will be available in one year. This is an example of reducing project duration caused by: A. Imposed project deadlines B. Time to market C. Unforeseen project delays D. High overhead E. Incentive contracts

A. Imposed project deadlines

A positive situation where moving toward the optimum time can result in very real, large savings—this occurs when the network is: A. Insensitive B. Sensitive C. Ahead of schedule D. Shifting to the critical chain E. Implementing a fast-tracking system

A. Insensitive

The laying pipe example in the text illustrates the concept of A. Laddering B. Hammock activities C. Critical path D. Concurrent engineering E. Forward pass

A. Laddering

The less steep the cost slope of an activity, the A. Less it costs to shorten one time period B. More it costs to shorten one time period C. Smaller the crash time D. Larger the crash time E. Cannot be determined by the information given

A. Less it costs to shorten one time period

The relationship between cost and time for various durations is assumed to be: A. Linear B. Curvilinear C. Variable D. Conversely related E. Exponentially related

A. Linear

The demolition of the Seattle Kingdome (Snapshot from Practice) is an example of which of the following? A. Mitigating B. Retaining C. Ignoring D. Transferring E. Sharing

A. Mitigating

Low-cost, realistic, efficient methods for completing an activity under normal conditions are supported by ________ time. A. Normal B. Budget C. Optimized D. Expected E. Target

A. Normal

Technical risks are ______________ A. Often the kind that causes the project to be shut down B. Easy to deal with C. Imposed duration dates D. Both A and B are correct E. A, B, and C are all correct

A. Often the kind that causes the project to be shut down

Activities which can take place at the same time are termed A. Parallel activity B. Critical path C. Burst activity D. Merge activity E. Independent activity

A. Parallel activity

Jose is forecasting project time and cost for constructing a new building by multiplying the total square footage by a given dollar amount. Which of the following methods is he using? A. Ratio B. Template C. Apportion D. Function point E. Learning curve

A. Ratio

Which of the following is not one of the probability analysis tools? A. Ratio/range analysis B. Decision tree C. PERT simulation D. PERT E. All of these are probability analysis tools

A. Ratio/range analysis

The most common response for meeting unattainable deadlines is to __________. A. Reduce or scale back the scope of the project B. Decrease the critical paths C. Crash all elements of the project D. Change the time to market statement E. B, and C are correct

A. Reduce or scale back the scope of the project

A list of questions that address traditional areas of uncertainty on a project is termed as a A. Risk profile B. Risk questionnaire C. Risk assessment D. Risk query E. Risk checklist

A. Risk profile

The cost impact of a risk event occurring as a project proceeds through its life cycle tends to A. Slowly rise B. Drop sharply and then level out C. Rise sharply and then level out D. Remain about the same E. Slowly drop

A. Slowly rise

Concurrent engineering is a good example of good use of A. Start to Start lags B. Start to Finish lags C. Finish to Finish lags D. Finish to Start lags E. Any of these could be correct

A. Start to Start lags

The amount of time an activity can be delayed and yet not delay the project is termed A. Total slack B. Free slack C. Critical float D. Float pad E. Slip pad

A. Total slack