Project Management exam 2 Chapter 9, 10, 11

ABC - indirect costs are allocated to fixed costs based upon 4 drivers:

# of units produced, # of batches run, # of product variations, % of facility utilized

4 primary categories of risk by project phase

1. Project initiation: Customer does not agree on price. 2. Project planning: Supplier not capable of delivering requirements 3. Project execution: Design not meeting reliability requirements. 4. Project Conclusion: Design not meeting customer requirements

Which accurately describes risk in project management?

A risk may impact the project in a positive or negative way

What are the 3 methods used for estimating costs?

Analogous (top down) Parametric bottom up

Jason, a project manager, is working with his team to estimate the total cost of developing a web-based CRM system. After reviewing the planned scope of work with Jason, his sponsor suggests that Jason use the budget from a previous, similar project as the basis for his project budget. The estimating process that Jason's sponsor is using is called _____________

Analogous Estimating

Which estimating technique uses historical data from a similar project as starting point for creating a time or cost estimate

Analogous estimating

Which is the most accurate?

Bottom Up estimating

All of the following describe the appropriate application of Perform Quantitative Risk Analysis in project management EXCEPT

Brainstorming techniques are used by the team and other stakeholders to identify as many projects risks as possible

The budget within the cost baseline that is allocated for identified risks, for which mitigating responses are developed, is called the ______.

Contingency reserve

A ______is used to compare actual project spending with planned expenditures over time to determine if corrective action is needed

Cost Baseline

_____________ is "the process of aggregating the estimated costs of individual activities or work packages to establish an authorized time-phased project budget or cost baseline".

Determine Budget

All of the following methods have proven to be useful techniques to help project teams identify the risks that might impact the project EXCEPT

Documenting lessons learned

Activity cost estimates, the basis of estimates and other supporting detail are outputs of which process?

Estimate costs

Generally, parametric estimating requires less information and time than analogous estimating? T of F

False

In agile projects, early risk planning is done at a detail level? T of F

False

What does NOT describe an aspect of life cycle costing?

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

A milestone is a typical measuring point used when establishing cost control. which of the following does not accurately describes the use of cost control milestones?

Milestones are developed during risk planning

Which term best describes a provision in the project management plan to mitigate cost and / or schedule risk

Reserve

When can you expect "Unknown unknowns"

They are usually discovered during risk identification

Risk response strategy decisions should reflect a thorough understanding of the priorities that key stakeholders have for cost, schedule, scope, and quality? T or F

True

When complete, the risk register presents the results of both qualitative and quantitative risk analysis we well as risk response planning? T or F

True

All of the following are among the classic risk response strategies EXCEPT:

a. SHARE A THREAT b. transfer a threat c .enhance an opportunity d. avoid a threat.

All of the following activities illustrate a risk response strategy designed to exploit an opportunity EXCEPT:

a. identify trigger conditions b. assign more or better resources C. PURCHASE INSURANCE d. give the project more visibility

4 Project success measures

agreements, customers, organization, and team

On Agile projects, detailed risk management activities may occur during?

early risk planning at the start of the project

Projects often include indirect costs that are not associated directly with one specific project. Which of the following items are most typically considered to be indirect costs?

Executive salaries, utilities and insurance

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 suppliers are necessary?

Expedited costs

Early in a project when a very little detail is known about a project, it is impractical to render even a rough estimate of the final project cost? T or F

False

The amount of project budget reserved for unforeseen project work that addresses the "unknown unknowns" that can affect a project is the _____.

Funding limit

One of the principle benefits of creating a bottom-up estimate during planning is that the estimate

Is very accurate

As the project progresses from initiation through planning and executing, and additional detail is gathered, the range of values for the project cost estimate will:

Narrow

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?

Number of units produced

Ellen is estimating how much it will cost to re-carpet the executive conference room. After selecting the grade and pattern of carpet, Ellen multiplies the carpet price per square yard times the number of square yards in the conference room to derive the total price of the material. This estimating method is called ______.

Parametric estimating

The "process that establishes the policies, procedures, and documentation for planning, managing, expending, and controlling project costs" is referred to as:

Plan Cost Management

Complex projects such as research and development for new products often employ rolling wave planning to estimate costs. what best describes "rolling wave" planning?

Project managers render a definitive estimate for the first stage and an order of magnitude estimate for the remainder of the project

What is not contemporary methods of risk prioritization in project management?

Results of quantitative risk analysis are used for clarification purposes and are typically not documented in the risk register

What does RPN stand for and how do you calculate it?

Risk Priority Number and

Most commonly used tool for risk management?

Risk Register

__________ is a quantitative risk analysis technique used to determine the most powerful impact on the project, which will result in a tornado diagram

Sensitivity Analysis

There are many causes of variation in project costs. which of the following accurately describes the nature of this variation?

Special cause variation is when something ordinary occurs

What is appropriate upon completion of risk response planning?

The risk register should be baselined after planning is completed, and should not be updated once the project is in flight

Events discovered during Identify Risks that may or may not occur are often categorized as

known unknowns