PM Final Part 2

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

direct

Indirect costs are:

not directly related to the products or services of a project

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

The first step in project cost management is:

to plan how costs will be managed

Soles is a footwear company which has recently set up its store in Ambrosia. To manufacture its products, Soles incurs a range of different costs. Which of the following would be an example of an indirect cost?

Electricity used to run its factories

________ are those costs that are difficult to measure in monetary terms.

Intangible costs

Which of the following is true of a rough order of magnitude estimate?

It provides an estimate of what a project will cost

Which of the following reserves allows for future situations that are unpredictable?

Management reserves

Which of the following is true of contingency reserves?

They allow for future situations that can be partially planned for

A rough order of magnitude estimate can be referred to as a _____ estimate

ballpark