SPM CHAP7

c

Project managers should focus on ____, since they can control them. a. sunk costs c. direct costs b. indirect costs d. intangible costs

d

Since organizations depend on reliable information technology, there are also huge costs associated with ____. a. work time c. uptime b. technical planning d. downtime

d

____ use the actual cost of a previous, similar project as the basis for estimating the cost of the current project. a. Actual estimates c. Bottom-up estimates b. Parametric estimates d. Analogous estimates

b

____, with assistance from financial experts in their organizations, should create estimates of the costs and benefits of the project for its entire life cycle. a. Financial managers c. Budget managers b. Project managers d. System managers

d

____ includes the processes required to ensure that a project team completes a project within an approved budget. a. Cost budgeting c. Cost control b. Cost estimating d. Project cost management

c

____ involve estimating individual work items or activities and summing them to get a project total. a. Actual estimates c. Bottom-up estimates b. Parametric estimates d. Analogous estimates

a

A ____ is done very early in a project or even before a project is officially started. a. budgetary estimate c. rough order of magnitude estimate b. definitive estimate d. final estimate

b

A ____ is used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs. a. budgetary estimate c. rough order of magnitude estimate b. definitive estimate d. final estimate

a

A ____ is used to allocate money into an organization's budget. a. budgetary estimate c. rough order of magnitude estimate b. definitive estimate d. final estimate

c

A ____ provides an estimate of what a project will cost. a. budgetary estimate c. rough order of magnitude estimate b. definitive estimate d. final estimate

b

A(n) ____ 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. a. analogous cost estimate c. bottom-up estimate b. parametric model d. reserve analysis

c

The Standish Group's CHAOS studies reported an average cost overrun for unsuccessful IT projects range from 180 percent in 1994 to ____ percent in 2004. a. 28 c. 56 b. 43 d. 73

c

Three separate surveys of software project cost overruns found that the average cost overrun for all of the projects in their survey samples (not just unsuccessful projects) were ____ percent. a. 13-14 c. 33-34 b. 23-24 d. 43-44

b

Tom DeMarco, a well-known author on software development, suggests ____ reasons for the inaccuracies of many information technology project cost estimates and some ways to overcome them. a. three c. five b. four d. six

c

____ helps you develop an accurate projection of a project's financial costs and benefits. a. Profit cycle costing c. Life cycle costing b. Financial costing d. Profit margin costing

b

____ allow for future situations that are unpredictable. a. Contingency reserves c. Known unknowns b. Management reserves d. Indirect reserves

a

____ allow for future situations that may be partially planned for. a. Contingency reserves c. Unknown unknowns b. Management reserves d. Direct reserves

d

____ are costs that are not directly related to the products or services of the project, but are indirectly related to performing the project. a. Intangible costs c. Direct costs b. Tangible costs d. Indirect costs

c

____ are those costs that an organization can easily measure in dollars. a. Intangible costs c. Tangible costs b. Direct costs d. Indirect costs

a

____ involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance. a. Determining the budget c. Controlling costs b. Consolidation of costs d. Estimating costs

d

____ involves developing an approximation or estimate of the costs of the resources needed to complete project. a. Determining the budget c. Controlling costs b. Consolidation of costs d. Estimating costs

d

____ is a method for determining the estimated annual costs and benefits for a project and the resulting annual cash flow. a. Life cycle costing c. Cost estimating b. Profit margin analysis d. Cash flow analysis

b

____ is the ratio of revenues to profits. a. Profit c. Cost structure b. Profit margin d. Cost margin

a

____ should be forgotten. a. Sunk costs c. Direct costs b. Indirect costs d. Intangible costs