Project Management quiz questions Ch 7

________ are used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs.

Definitive estimates

____ is a project performance measurement technique that integrates scope, time, and cost data.

Earned value analysis

________ for projects often include items like goodwill, prestige, and general statements of improved productivity that an organization cannot easily translate into dollar amounts.

Intangible costs

If a project is halfway completed and its schedule performance index is 110 percent and its cost performance index is 95 percent, how is it progressing?

It is ahead of schedule and over budget.

______ reserves allow for future situations that are unpredictable.

Management

To increase ________, a company can increase revenues, decrease expenses, or try to do both.

Profits

______ involves allocating the project cost estimate to individual work items over time.

Project cost budgeting

If the actual cost for a WBS item is over $1500 and its earned value was $2000, what is its cost variance, and is it under or over budget?

The cost variance is $500, which is under budget

The drawback with ________ is that they are usually time-intensive and therefore expensive to develop.

bottom-up estimates

A(n) ________ is a time-phased budget that project managers use to measure and monitor cost performance.

cost baseline

Which of the following processes of project cost management involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance?

cost budgeting

The main outputs of the ________ process are work performance measurements, budget forecasts, organizational process asset updates, change requests, project management plan updates, and project document updates.

cost control

Which of the following processes of project cost management involves developing an approximation of the costs of the resources needed to complete a project?

cost estimating

Which of the following is the ratio of earned value to actual cost and can be used to estimate the projected cost of completing the project?

cost of performance index (CPI)

The ________ is the additional percentage or dollar amount by which actual costs exceed estimates.

cost overrun

Which of the following is the earned value minus the actual cost?

cost variance (CV)

The ________ is an estimate of the value of the physical work actually completed.

earned value (EV)

A company might complete a project to develop and implement a new customer service system in one or two years, but the new system could be in place for ten years. Project managers should create estimates of the costs and benefits of the project for ten years. This is an example of ________.

life cycle costing

You are preparing a cost estimate for a building based on its location, purpose, number of square feet, and other characteristics. What cost estimating technique are you using?

parametric

A ________ 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.

parametric model

Suppose a project included a summary activity of purchasing and installing a new Web server. Suppose further that, according to the plan, it would take one week and cost a total of $10,000 for the labor hours, hardware, and software involved. The ________ for that activity that week is, therefore, $10,000.

planned value (PV)

Which type of estimate is done very early in a project or even before a project is officially started?

rough order of magnitude (ROM) estimate

Which of the following is the ratio of earned value to planned value and can be used to estimate the projected time to complete the project?

schedule performance index (SPI)

Which of the following is the earned value minus the planned value?

schedule variance (SV)

Avoid ________ when deciding what project to invest in or continue.

sunk costs

Which type of estimate uses the actual cost of a previous, similar project as the basis for estimating the cost of the current project?

top-down estimate