Project Management 6-10

Which is a similarity between scope control and schedule control?

Both are portions of the integrated change control process under project integration management.

Which method is used for determining the estimated annual costs and benefits for a project?

Cash flow analysis

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 would be an example of an indirect cost?

Electricity used to run its factories

A backward pass through the network diagram determines the early start and early finish dates for each activity.

False

A budgetary estimate is the most accurate of the three types of estimates.

False

A disadvantage of using Gantt charts is that they do not provide a standard format for displaying planned project schedule information.

False

A drawback of the precedence diagramming method is that it cannot be used unless dummy activities are employed.

False

A drawback of the project management software is that it does not have the capacity to calculate the critical path(s) for a project.

False

A negative schedule variance means that it took less time than planned to perform the work.

False

After defining project activities, the next step in project schedule management is developing the schedule.

False

Analogous estimates are called activity-based costing.

False

Critical chain scheduling assumes that resources multitask and maximizes multitasking.

False

If cost variance is a positive number, it means that performing the work costs more than planned.

False

In a Gantt chart, thick black bars represent milestones achieved in a project.

False

In a critical path analysis, the shortest path is what drives the completion date for the project.

False

In a network diagram, it is mandatory for every item on the WBS to be shown instead of only those activities with dependencies.

False

In an earned value chart, when the actual cost line is right on or above the earned value line, it indicates that costs are less than planned.

False

In project schedule management, the next step after sequencing activities is to define these activities.

False

In project schedule management, the primary output of defining activities is a schedule management plan.

False

It is important for project managers to focus on indirect costs because they can be easily controlled.

False

Milestones are easy to achieve and are always achieved through one main activity.

False

One of PERT's main disadvantages is that it does not address the risk associated with duration estimates.

False

Start-to-finish relationships are the most frequently used dependencies between activities.

False

The arrows in a network diagram represent missed milestones in a project.

False

The final process in project schedule management is developing the schedule.

False

When deciding what projects to invest in or continue, one should include sunk costs.

False

Which technique involves doing activities in parallel that one would normally do in sequence?

Fast tracking

Which provide a standard format for displaying project schedule information by listing project activities and their corresponding start and finish dates in a calendar format?

Gantt charts

Which costs are difficult to measure in monetary terms?

Intangible costs

Which is true of a finish-to-finish dependency?

It is a dependency in which the "from" activity must be finished before the "to" activity can be finished.

Which is true of earned value?

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

Which statement is true of a order of magnitude estimate?

It provides an estimate of what a project will cost.

What is the latest possible time an activity might begin without delaying the project finish date?

Late start date

Which reserves allow for future situations that are unpredictable?

Management reserves

What is an accurate difference between the Program Evaluation and Review Technique (PERT) and critical path method (CPM)?

PERT uses different duration estimates whereas CPM uses one specific duration estimate.

What is another term used for budget?

PLANNED value

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

People lack estimating experience.

Which document is most likely to include planned project start and end dates which serve as the starting points for a detailed schedule?

Project Charter

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 which costs?

Sunk

In an AOA network diagram, what occurs when two or more activities follow a single node?

The critical path on a project can change as the project progresses.

Which type of estimate uses the actual cost of a previous, similar project as the basis for estimating the cost of the current project?

analogous estimates

What is a rough order of magnitude estimate also referred to as?

ballpark

Which is a similarity between the crashing and fast tracking?

both can shorten the time needed to finish a project

What type of estimate is a cost estimation tool that involves estimating individual work items or activities and summing them to get a project total?

bottom-up

What type of estimate is a cost estimation tool used to allocate money into an organization's budget?

budgetary

Which is an output of schedule control?

change requests

Which is an output of the process of controlling costs?

cost forecasts

Which technique is used for making cost and schedule trade-offs to obtain the greatest amount of schedule compression for the least incremental cost?

crashing

In project schedule management, which process generates the main outputs of an activity list, activity attributes, and a milestone list?

defining activities

What type of estimate is used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs?

definitive

Which type of estimate should be used if the cost estimate for a project is used a basis for contract awards and performance reporting?

definitive

Which process involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance?

determining the budget

In project schedule management, what is the next step after defining project activities?

determining their dependencies

In project schedule management, the ultimate goal of which process is to provide a basis for monitoring project progress for the time dimension of the project?

developing a schedule

In project schedule management, which process involves analyzing activity sequences, activity resource estimates, and activity duration estimates to create the project schedule?

developing the schedule

Variances are calculated by subtracting the actual cost from which value?

earned value

Which statement best defines schedule variance?

earned value minus the planned value

After working with key stakeholders to define activities and calculate their resources, what is the next process in project schedule management?

estimate the duration of activities.

Which process involves developing an approximation of the costs of resources needed to complete a project?

estimating costs

A merge occurs when one node precedes multiple nodes.

false

How does critical chain scheduling protect tasks on the critical chain from being delayed?

feeding buffers

Which process helps develop an accurate projection of a project's financial expenses and benefits?

life cycle costing

The critical path is the _____ path through a network diagram, and it represents the _____ amount of slack or float.

longest; shortest

Which term is used for a significant event on a project that normally has no duration?

milestone

Which statement is true regarding indirect costs?

not directly related to the products or services of a project.

Which type of estimating uses project characteristics in a mathematical model to estimate project costs?

parametric

What is the first step in project cost management?

plan how costs will be managed

What is the first process involved in project schedule management?

planning schedule management

What type of management includes the processes required to ensure that a project team completes a project within an approved budget?

project cost management

In project schedule management, which is an output of controlling the schedule?

project management plan update

How are profits best defined?

revenues minus expenditures

In project schedule management, which process primarily involve identifying and documenting the relationships between project activities?

sequencing activities

Which dependencies do AOA network diagrams use?

start-to-finish

During which relationship is the "from" activity unable start until the "to" activity is started?

start-to-start

Project managers must conduct cash flow analysis to determine net present value.

tRUE

The primary output of the planning cost management process is a change request.

tRUE

Which is an input of the process of controlling costs?

work performance data

Which statement is true of contingency reserves?

They allow for future situations that can be partially planned for.

Which statement is true of analogous estimates?

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

Which statement is true of tangible costs?

They can be easily measured.

Which is true of dummy activities?

They have long durations.

What term is used for analogous estimates?

Top-down

A Tracking Gantt chart is based on the percentage of work completed for project tasks or the actual start and finish dates.

True

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

True

A dependency pertains to the sequencing of project activities or tasks.

True

A schedule management plan includes information which describes the format and frequency of schedule reports required for the project.

True

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

True

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

True

Determining the budget involves allocating the project cost estimate to individual work items over time.

True

Estimates should become more accurate as time progresses.

True

If an important supplier goes out of business, management reserves can be set aside to cover the resulting costs.

True

It is important for project managers to understand that every cost estimate is unique.

True

Knowing the amount of float allows project managers to know whether a project schedule is flexible.

True

Network diagrams are the preferred technique for showing activity sequencing.

True

Project schedules grow out of basic documents such as the project charter.

True

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

True

The critical path on a project can change as the project progresses.

True

The formulas for variances and indexes start with EV, the earned value.

True

The technique of fast tracking can result in lengthening the project schedule.

True