Project Management Chapter 5

Benefits for reference class forecasting include...

All of these choices

Typical kinds of costs found in a project include all of the following EXCEPT...

All of these choices are examples of costs found in a project

Which of the following top-down methods is used when projects closely follow past projects in regard to features and costs of those features, and result in costs being assigned by percentages to major segments of the project?

Apportion

Refining estimates may be necessary for a number of reasons. For example, a manager getting further into a project and obtaining a better understanding of what needs to be done to accomplish a project and meet the needs of the customer is an example of...

Changes in project scope

Companies are using which of the following for improving the estimating process for future projects?

Creating historical databases of previous projects

After averaging out the underestimates and overestimates, a long-duration project is more likely to be on target than a short-term, small project.

False

As long as everyone in a project adds a little padding to reduce risk, the project duration and cost estimates will be more accurate.

False

Estimating the total cost of a house by multiplying the total square feet by cost per square foot is an example of the apportion method of estimating costs.

False

If a project is internal to the company and relatively small, the bottom-up approach to estimating time and costs for the project is the best choice.

False

The consensus method of estimating costs is a bottom-up technique

False

The project management structure chosen to manage the project will have little impact on the quality of estimates.

False

The salary of the project manager and her administrative assistant is classified as direct labor costs.

False

Work package estimates should include allowances for contingencies

False

Sean is forecasting the time and cost of developing a customized software program by looking at the number of inputs, outputs, inquiries, files, and interfaces. Which of the following methods is he using?

Function point

Accounting would be an example of which of the following costs typically found in a project

General and administrative overhead

Refining estimates may be necessary for a number of reasons. For example, people working on prototype development needing time to interact with the design engineers after the design is completed is a good example of...

Hidden interaction costs

Which of the following describes the consensus method?

Uses pooled experience of senior and/or middle managers to estimate the total project duration and cost

Which of the following methods is NOT considered a top-down approach to estimating project time and cost?

Template

The ideal approach to estimating project time and costs is to use both the top-down and the bottom-up approach.

True

The salary of the project manager would be an example of what type of cost found in a project?

Direct project overhead

Which of the following is NOT one of the recommended guidelines for developing useful work package estimates?

Estimates should include a normal level of contingency

Learning curves are more likely to be applied in situations where most of the costs are...

Labor

Which of the following would best represent direct project costs?

Labor, materials and equipment

Jose is forecasting project time and cost for constructing a new building by multiplying the total square footage by a given dollar amount. Which of the following methods is he using?

Ratio

An external view of a Mega Project based upon the outcome of similar projects undertaken in the past is known as:

Reference class forecasting

Laura is forecasting the time and cost of developing an intranet for a new customer. Her department has completed six such intranets for customers during the last two years. Although the proposed system is about the same size as the others she estimates that it will take about 10 percent less time and money. Which of the following methods is she using?

Learning curve

The pattern of improvement identified from a worker having performed a task multiple times is known as...

Learning curve

Which of the following is NOT one of the bottom-up approaches to estimating project time and cost?

Learning curve

Refining estimates may be necessary for a number of reasons. For example, resource shortages, in the form of people, equipment, or materials, can extend original estimates. This is a good example of

Normal conditions not applying.

A good starting point for developing time and cost estimates is...

Past experience

Which of the following would be the best method for projects where the final product is not known and the uncertainty is very large?

Phase estimating

Which of the following does NOT help describe a bottom-up estimating approach?

They are made by someone who uses experiences and/or information from someone else to determine overall project cost and duration

Reasons why estimating time and cost are important include all of the following EXCEPT

To help establish a project selection process

All task time estimates need consistent time units.

True

General and administrative costs are usually allocated as a percent of the total direct cost which includes labor, materials, or equipment.

True

Mega Projects often under deliver on expected benefits and cost more than expected.

True

One guideline to follow when estimating time, cost and resources is to use several people to make the estimate for a task.

True

Organization culture can significantly influence project time and cost estimates.

True

Past experience is almost always used primarily in the initial phases of estimating.

True

Phase estimating is used when a project cannot be rigorously defined because of uncertainty of the design or the final product

True