Project Cost Management Chapter 7 CIT 263

Which statement is true of a order of magnitude estimate?

It provides an estimate of what a project will cost.

_____ theory states that when many items are produced repetitively, the unit cost of those items decreases in a regular pattern as more units are produced.

Learning curve

Which statement best defines schedule variance?

earned value minus the planned value

The cost performance index can be used to calculate the _____ which gives an approximate cost of completing a project based on performance to date.

estimate at completion

Contingency reserves are also known as unknown unknowns.

false

Project costs, like project schedules, grow out of the basic documents that initiate a project, like the _____.

project charter

A schedule performance index of one means that the project is on schedule.

true

In a bottom-up estimate, the size of the individual work items is one of the factors that drives the accuracy of the estimates.

true

One of the reasons why project cost estimates are inaccurate is because human beings are biased toward underestimation.

true

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

true