Quiz 8

_____ includes the processes required to ensure that a project team completes a project within an approved budget.

Project Cost Management

____ is a method for determined the estimated annual costs and benefits for a project

Cash flow analysis

One of the main outputs of the _____ process is a cost baseline.

Cost budgeting

The main goal of the______ process is to produce a cost baseline for measuring project performance and project funding requirements

Cost budgeting

Which of the following is an output of the process of controlling costs?

Cost forecasts

Variances are calculated by subtracting the actual cost from _____.

Earned Value

Analogous estimates are the most accurate technique to estimate costs

False

Intangible costs can be easily measured in Monetary terms

False

Which of the following is true of earned value?

It is an estimate of the value of the physical work actually completed.

_____ helps develop an accurate projection of a project's financial expenses and benefits.

Life cycle costing

_____ uses project characteristics in a mathematical model to estimate project costs.

Parametric estimating

Which of the following is most likely to be a reason for inaccuracies in information technology cost estimates?

People lack estimating experience.

Which of the following is true of analogous estimates?

They are most reliable when previous projects are similar in fact with current projects.

A cost management plan can include organizational procedures links, control thresholds, and process descriptions.

True

Definitive estimates are made one year or less prior to project completion.

True

Estimates should become more accurate as time progresses.

True

Parametric models are reliable when the models are flexible in terms of the project's size.

True

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

True

A cost estimation tool which is used to allocate money into an organization's budget is known as a _____ estimate.

budgetary

Good Earth, a company manufacturing packaged food products, sets up its stores in Baltonia. However, a year later, the company closes the store down due to high operating costs. In such a scenario, the money spent in paying for the rent of the store in Baltonia would be an example of _____ costs.

sunk