Quiz
Chapter 7 T/F
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Questions in this quiz (30)
11. Overrun is the additional percentage amount by which estimates exceed actual costs.
- ATrue
- BFalse
22. The primary output of the planning cost management process is a change request.
- ATrue
- BFalse
33. IT project managers must be able to present and discuss project information both in financial and technical terms
- ATrue
- BFalse
44. Project managers must conduct cash flow analysis to determine net present value.
- ATrue
- BFalse
55. Intangible costs can be easily measured in monetary terms.
- ATrue
- BFalse
66. When deciding what projects to invest in or continue, one should include sunk costs
- ATrue
- BFalse
77. It is important for project managers to focus on indirect costs because they can be easily controlled.
- ATrue
- BFalse
88. If an important supplier goes out of business, management reserves can be set aside to cover the resulting costs.
- ATrue
- BFalse
99. Contingency reserves are also known as unknown unknowns.
- ATrue
- BFalse
1010. A cost management plan can include organizational procedures links, control thresholds, and process descriptions.
- ATrue
- BFalse
1111. A budgetary estimate is the most accurate of the three types of estimates
- ATrue
- BFalse
1212. Budgetary estimates are made even before a project is officially started
- ATrue
- BFalse
1313. Definitive estimates are made one year or less prior to project completion.
- ATrue
- BFalse
1414. Estimates should become more accurate as time progresses.
- ATrue
- BFalse
1515. Supporting details for an estimate include the ground rules and assumptions used in creating the estimate.
- ATrue
- BFalse
1616. Analogous estimates are called activity-based costing.
- ATrue
- BFalse
1717. Analogous estimates are the most accurate technique to estimate costs.
- ATrue
- BFalse
1818. In a bottom-up estimate, the size of the individual work items is one of the factors that drives the accuracy of the
estimates- ATrue
- BFalse
1919. Parametric models are reliable when the models are flexible in terms of the project’s size.
- ATrue
- BFalse
2020. One of the reasons why project cost estimates are inaccurate is because human beings are biased toward
underestimation.- ATrue
- BFalse
2121. It is important for project managers to understand that every cost estimate is unique
- ATrue
- BFalse
2222. Determining the budget involves allocating the project cost estimate to individual work items over time.
- ATrue
- BFalse
2323. The project management plan and project funding requirements are inputs of the process of controlling costs.
- ATrue
- BFalse
2424. The formulas for variances and indexes start with EV, the earned value.
- ATrue
- BFalse
2525. If cost variance is a positive number, it means that performing the work costs more than planned.
- ATrue
- BFalse
2626. A negative schedule variance means that it took lesser than planned to perform the work.
- ATrue
- BFalse
2727. If the cost performance index (CPI) is less than 100 percent, the project is under budget.
- ATrue
- BFalse
2828. A schedule performance index of one means that the project is on schedule.
- ATrue
- BFalse
2929. 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.- ATrue
- BFalse
3030. Spreadsheets are a common tool for cost estimating, cost budgeting, and cost control.
- ATrue
- BFalse
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- CIS 4375 Quiz on Chapter 7 T/F, created by . . on 27/09/2017.
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