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Cost
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Questions in this quiz (40)
1_____ includes the processes required to ensure that a project team completes a project within an approved budget.
- AProject scope management
- BProject quality management
- CProject time management
- DProject cost management
2Which of the following involves developing an approximation of the costs of resources needed to complete a project?
- ADetermining the budget
- BFinalizing the cost baseline
- CControlling costs
- DEstimating costs
3_____ involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance.
- ADetermining the budget
- BFinalizing policies for project costs
- CControlling costs
- DEstimating costs
4One of the main outputs of the _____ process is a cost baseline.
- Acost controlling
- Bcost estimating
- Ccost budgeting
- Dcost planning
5The process of controlling costs primarily involves:
- Adetermining the policies for project costs.
- Bmanaging changes to the project budget.
- Cfinalising the procedures for project costs.
- Ddetermining a basis for estimates.
6Work performance information and cost forecasts are main outputs of the _____ process.
- Acost budgeting
- Bcost estimating
- Ccost control
- Dcost pricing
7Profits may be defined as:
- Aexpenses plus net income.
- Bcosts plus revenues.
- Crevenues plus expenses.
- Drevenues minus expenditures.
8_____ helps develop an accurate projection of a project’s financial expenses and benefits.
- ACritical path analysis
- BFast tracking
- CLife cycle costing
- DCrashing
9_____ is a method for determining the estimated annual costs and benefits for a project.
- ACritical path analysis
- BCash flow analysis
- CPresent value analysis
- DRequirements analysis
10Which of the following is true of tangible costs?
- AThey cannot be calculated in monetary terms.
- BThey can be easily measured.
- CThey are difficult to quantify.
- DTheir examples include goodwill and prestige.
11_____ are those costs that are difficult to measure in monetary terms.
- AIntangible costs
- BDirect costs
- CTangible costs
- DFixed costs
12Newtech 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.
- Adirect
- Bindirect
- Csunk
- Dintangible
13Indirect costs are:
- Adirectly related to performing the project.
- Bthose that cannot be allocated to projects.
- Cthose that can be easily controlled by managers.
- Dnot directly related to the products or services of a project.
14Soles 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?
- ACost of machines to produce shoes
- BSalary paid to factory workers
- CElectricity used to run its factories
- DCost of leather used to manufacture shoes
15Good 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.
- Arecurring
- Bdirect
- Csunk
- Dintangible
16Which of the following is true of contingency reserves?
- AThey allow for future situations that can be partially planned for.
- BThey are also known as unknown unknowns.
- CThey are not included in a cost baseline.
- DThey allow for dollar amounts to be used to cover existing, fixed costs.
17Which of the following reserves allows for future situations that are unpredictable?
- AManagement reserves
- BContingency reserves
- CKnown unknowns
- DCost baseline reserves
18The first step in project cost management is:
- Ato allocate project cost estimates to individual material resources.
- Bto plan how costs will be managed.
- Cto control project costs and monitor cost performance.
- Dto develop several estimates of costs for different types of resources.
19Which of the following is true of a rough order of magnitude estimate?
- AIt is used to allocate money into an organization’s budget.
- BIt provides an estimate of what a project will cost.
- CIts timeframe is always less than a year prior to project completion.
- DIt is a type of estimate that is done in the final stages of a project.
20A rough order of magnitude estimate can be referred to as a _____ estimate.
- Adefinitive
- Bbudgetary
- Cfinal
- Dballpark
21A cost estimation tool which is used to allocate money into an organization’s budget is known as a _____ estimate.
- Abudgetary
- Bdefinitive
- Crough order of magnitude
- Dballpark
22A _____ estimate is used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs.
- Abudgetary
- Bdefinitive
- Crough order of magnitude
- Dfinal
23Which of the following types of estimate use the actual cost of a previous, similar project as the basis for estimating the cost of the current project?
- ADefinitive estimates
- BParametric estimates
- CBottom-up estimates
- DAnalogous estimates
24Analogous estimates are also known as _____ estimates.
- Abottom-up
- Btop-down
- Cparametric
- Dbudgetary
25Which of the following is true of analogous estimates?
- ATheir main disadvantage is that they cost more than other techniques.
- BThey are the only technique which do not require expert judgement.
- CThey are most reliable when previous projects are similar in fact with current projects.
- DThey use project characteristics in a mathematical model to estimate project costs.
26A cost estimation tool which involves estimating individual work items or activities and summing them to get a project total is known as a(n) _____ estimate.
- Abudgetary
- Bparametric
- Cbottom-up
- Danalogous
27Which of the following is true of bottom-up estimates?
- AThey are based on the actual cost of a previous, similar project.
- BThey are also known as parametric estimating.
- CThey are most accurate when they involve large, extensive work items.
- DThey are time-intensive and expensive to develop.
28_____ uses project characteristics in a mathematical model to estimate project costs.
- ARough order of magnitude estimating
- BParametric estimating
- CBottom-up estimating
- DAnalogous estimating
29Which of the following is most likely to be a reason for inaccuracies in information technology cost estimates?
- AEstimates take a long time to be worked out.
- BPeople lack estimating experience.
- CHuman beings are biased toward overestimation.
- DOnly software development provides the scope for estimates to be accurate.
30If the cost estimate for a project is a basis for contract awards and performance reporting, it should be a(n) _____ estimate and as accurate as possible.
- Abudgetary
- Bdefinitive
- Crough order of magnitude
- Danalogous
31The main goal of the _____ process is to produce a cost baseline for measuring project performance and project funding requirements.
- Acost budgeting
- Bcost planning
- Ccost controlling
- Dcost estimating
32Which of the following is an output of the process of controlling costs?
- ACost forecasts
- BProject funding requirements
- CBasis of estimates
- DScope baselines
33Which of the following is an input of the process of controlling costs?
- ACost forecasts
- BWork performance data
- CChange requests
- DScope baseline
34The budget is one of the three values of earned value management and is also known as _____.
- Aearned value
- Bactual cost
- Cindirect cost
- Dplanned value
35Which of the following is true of earned value?
- AIt is the actual cost plus the planned cost.
- BIt is based solely on the total cost estimate to be spent on an activity.
- CIt is an estimate of the value of the physical work actually completed.
- DIt is also known as the planned value.
36Variances are calculated by subtracting the actual cost from _____.
- Aearned value
- Bschedule variance
- Cplanned value
- Drate of performance
37Cost variance is:
- Athe planned value plus actual costs.
- Bthe earned value minus the actual cost.
- Cthe rate of performance minus earned value.
- Dthe planned value minus the rate of performance.
38Schedule variance is:
- Athe earned value minus the planned value.
- Bthe earned value minus the actual cost.
- Cthe planned value plus the earned value.
- Dthe planned value plus the rate of performance.
39The cost performance index (CPI):
- Aindicates that a project is under budget if CPI is less than one.
- Bcan be used to estimate the projected cost of completing the project.
- Cindicates that the planned and actual costs are equal if CPI is more than one.
- Dis the ratio of earned value to planned value.
40Which of the following is true of the schedule performance index (SPI)?
- AIt can be used to estimate the projected time to complete the project.
- BIt means that a project is behind schedule if an SPI is greater than one.
- CIt means that a project is ahead of schedule if SPI is lesser than one or hundred percent.
- DIt is the ratio of planned value to actual costs.
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- Information Technology Quiz on Cost, created by Huy Anh Vo on 27/06/2019.
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- Huy Anh Vo
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- English
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