WGU Project Management C722, Unit 6, Module 21, 22 quiz

True or False: As you do your initial cost estimates for your various restaurant projects, you should use the bottom-up estimation method.

False Initial cost estimates should not use the bottom-up method since these estimates are made at the detailed work activity level of the WBS.

Which of the following requires that estimates be made at the detailed work activity level of the WBS by functional experts with knowledge of the required/available resources to complete the activity? a. Bottom-up estimation methods b. Ratio methods c. Apportion methods d. Parametric estimation methods

a. bottom-up estimation methods Bottom-up estimation methods require that estimates be made at the detailed work activity level of the WBS by functional experts with knowledge of the required/available resources to complete the activity.

Which of the following uses experience from prior projects to estimate the overall cost of the current project? a. Ratio method b. Project charter c. Business scenario d. Project objective

a. ratio method The ratio method uses experience from prior projects to estimate the overall cost of the current project.

Early cost approximations are most often developed using ____________ provided by someone at the organization who has knowledge or experience from prior projects similar to the project being considered. a. top-down estimation methods b. project plans c. risk management d. bottom-up estimation methods

a. top-down estimation methods Early cost approximations are most often developed using top-down estimation methods provided by someone at the organization who has knowledge or experience from prior projects similar to the project being considered.

Which of the following is often used as the project transitions from the defining to the planning phase and it requires that an overall project cost be provided based on the customer's budget or similar projects? a. Project plans b. Ratio method c. Apportion method d. Bottom-up estimation method

c. apportion method The apportion method is often used as the project transitions from the defining to the planning phase. It requires that an overall project cost be provided based on the customer's budget or similar projects.

"Fill in the blank" question: select the correct answer. Serge has given you a budget that includes costs for subcontractors that are 15% higher than what you originally anticipated. When you ask him about it, he says, "You know how those subs are. They never come in on budget. I thought it would be better to add in the extra cost up front." This an example of _______. a. contingency reserves b. management reserves c. padding

c. padding Padding is a buffer in the budget "just in case." In this case, it is only Serge's opinion that these overruns will happen.

Based on the project expertise and effort required to develop bottom-up estimates, they are normally developed during which phase of a project? a. Closing b. Defining c. Planning d. Execution

c. planning Based on the project expertise and effort required to develop bottom-up estimates, they are normally developed during the detailed planning phase of a project when the level of knowledge is greater.

Serge and the architect estimate that the renovation of the restaurant space will cost $380/sq ft. What is this an example of? a. Work activity aggregate estimating b. Parametric estimating c. Ratio estimating d. Apportion estimating The ratio method uses experience from prior projects to estimate the overall cost of the current project. Estimating cost per square foot is an example of this.

c. ratio estimating The ratio method uses experience from prior projects to estimate the overall cost of the current project. Estimating cost per square foot is an example of this.

In which instance would you use a bottom-up estimation method? a. You want to use your contractor's experience from prior projects to estimate the overall cost of the current project. b. You need to allocate the overall budget estimate into subcategories. c. You want to develop a project proposal for the food truck you are thinking about buying. d. You need to develop a calendarized budget that shows the timing of the expenditures.

d. You need to develop a calendarized budget that shows the timing of the expenditures. You use bottom-up estimation when developing a calendarized budget to identify the specific work activities required for each major deliverable.

True or False. Baselining is the process of measuring how close actual costs are to the budget, and then making changes in project execution as needed.

false: Baselining means freezing the planned budget so that actual costs can be compared to it throughout the remainder of the project.

True or False. General and administrative costs can be attributed to specific work activities identified in the WBS such as labor, materials, supplies, and equipment.

false: General and administrative costs are overhead costs from outside of the project team and often include expenses from corporate services such as legal, human resources, and payroll.

True or False. Parametric estimating methods start at the lowest level of the WBS and aggregate cost estimates up to the total project. They require that people with expertise in doing the work estimate the resources needed to complete each work activity.

false: Parametric estimating methods are top-down estimating methods that are based on the relationship between the current project and historical data.

True or False. A calendarized budget distributes costs across the time periods of the project.

true: A calendarized budget distributes costs across the time periods of the project. Knowing when expenses will occur allows the organization to ensure that sufficient money is available to pay the bills when due.

True or False. Management reserves are costs included in the budget to cover unexpected scenarios that may occur.

true: A management reserve is an amount added to the overall project budget to cover unknown project risks.

True or False. Direct overhead costs are costs such as work space, supervision, project administration, equipment, or other resources from the project that are shared across the work activities.

true: Direct overhead costs are also called indirect costs because they cannot be directly attributed to a specific project work activity.

True or False. The resource allocation histogram is a good tool to assist in generating a calendarized budget because it shows how much of each resource is required for each time period

true: The resource allocation histogram makes it possible for the costs for each resource to be included in the calendarized budget.