Quiz 6 (Ch 5)

A rough order of magnitude estimate can be referred to as a _____ estimate. A) ballpark B) definitive C) final D) budgetary

A) ballpark

Newtech Inc. hires John for the position of a software programmer to work on their new project. Salary paid to John by Newtech Inc. would be an example of _____ costs. A) indirect B) direct C) sunk D) intangible

B) direct

A cost estimation tool which is used to allocate money into an organization's budget is known as a _____ estimate. A) ballpark B) definitive C) budgetary D) rough order of magnitude

C) budgetary

The cost performance index (CPI): A) indicates that the planned and actual costs are equal if CPI is more than one. B) is the ratio of earned value to planned value. C) can be used to estimate the projected cost of completing the project. D) indicates that a project is under budget if CPI is less than one.

C) can be used to estimate the projected cost of completing the project.

Budgetary estimates are made even before a project is officially started. True False

False

Intangible costs can be easily measured in monetary terms. True False

False

Supporting details for an estimate include the ground rules and assumptions used in creating the estimate. True False

True

Which of the following types of estimate use the actual cost of a previous, similar project as the basis for estimating the cost of the current project? A) Bottom-up estimates B) Definitive estimates C)Analogous estimates D) Parametric estimates

C)Analogous estimates

Which of the following is true of tangible costs? A) They are difficult to quantify. B) They cannot be calculated in monetary terms. C) Their examples include goodwill and prestige. D) They can be easily measured.

D) They can be easily measured.

Analogous estimates are called activity-based costing. True False

False