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Chapter 7 M/C
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Questions in this quiz (30)
131. _____ includes the processes required to ensure that a project team completes a project within an approved budget.
- Aa. Project scope management
- Bb. Project quality management
- Cc. Project time management
- Dd. Project cost management
232. Which of the following involves developing an approximation of the costs of resources needed to complete a project?
- Aa. Determining the budget
- Bb. Finalising the cost baseline
- Cc. Controlling costs
- Dd. Estimating costs
333. _____ involves allocating the overall cost estimate to individual work items to establish a baseline for measuring
performance.- Aa. Determining the budget
- Bb. Finalising policies for project costs
- Cc. Controlling costs
- Dd. Estimating costs
434. One of the main outputs of the _____ process is a cost baseline.
- Aa. cost controlling
- Bb. cost estimating
- Cc. cost budgeting
- Dd. cost planning
535. The process of controlling costs primarily involves:
- Aa. determining the policies for project costs.
- Bb. managing changes to the project budget.
- Cc. finalising the procedures for project costs
- Dd. determining a basis for estimates.
636. Work performance information and cost forecasts are main outputs of the _____ process
- Aa. cost budgeting
- Bb. cost estimating
- Cc. cost control
- Dd. cost pricing
737. Profits may be defined as:
- Aa. expenses plus net income.
- Bb. costs plus revenues.
- Cc. revenues plus expenses.
- Dd. revenues minus expenditures.
838. _____ helps develop an accurate projection of a project’s financial expenses and benefits
- Aa. Critical path analysis
- Bb. Fast tracking
- Cc. Life cycle costing
- Dd. Crashing
939. _____ is a method for determining the estimated annual costs and benefits for a project.
- Aa. Critical path analysis
- Bb. Cash flow analysis
- Cc. Present value analysis
- Dd. Requirements analysis
1040. Which of the following is true of tangible costs?
- Aa. They cannot be calculated in monetary terms
- Bb. They can be easily measured
- Cc. They are difficult to quantify
- Dd. Their examples include goodwill and prestige.
1141. _____ are those costs that are difficult to measure in monetary terms.
- Aa. Intangible costs
- Bb. Direct costs
- Cc. Tangible costs
- Dd. Fixed costs
1242. Newtech 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.- Aa. direct
- Bb. indirect
- Cc. sunk
- Dd. intangible
1343. Indirect costs are:
- Aa. directly related to performing the project.
- Bb. those that cannot be allocated to projects.
- Cc. those that can be easily controlled by managers.
- Dd. not directly related to the products or services of a project.
1444. 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 of the following would be an example of an indirect cost?- Aa. Cost of machines to produce shoes
- Bb. Salary paid to factory workers
- Cc. Electricity used to run its factories
- Dd. Cost of leather used to manufacture shoes
1545. 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 _____ costs.- Aa. recurring
- Bb. direct
- Cc. sunk
- Dd. intangible
1646. Which of the following is true of contingency reserves?
- Aa. They allow for future situations that can be partially planned for.
- Bb. They are also known as unknown unknowns.
- Cc. They are not included in a cost baseline.
- Dd. They allow for dollar amounts to be used to cover existing, fixed costs.
1747. Which of the following reserves allows for future situations that are unpredictable?
- Aa. Contingency reserves
- Bb. Management reserves
- Cc. Known unknowns
- Dd. Cost baseline reserves
1848. The first step in project cost management is:
- Aa. to allocate project cost estimates to individual material resources.
- Bb. to plan how costs will be managed.
- Cc . to control project costs and monitor cost performance.
- Dd. to develop several estimates of costs for different types of resources.
1949. Which of the following is true of a rough order of magnitude estimate?
- Aa. It is used to allocate money into an organization’s budget.
- Bb. It provides an estimate of what a project will cost.
- Cc. Its timeframe is always less than a year prior to project completion.
- Dd. It is a type of estimate that is done in the final stages of a project.
2050. A rough order of magnitude estimate can be referred to as a _____ estimate.
- Aa. definitive
- Bb. budgetary
- Cc. final
- Dd. ballpark
2151. A cost estimation tool which is used to allocate money into an organization’s budget is known as a _____ estimate.
- Aa. budgetary
- Bb. definitive
- Cc. rough order of magnitude
- Dd. ballpark
2252. A _____ estimate is used for making many purchasing decisions for which accurate estimates are required and for
estimating final project costs.- Aa. budgetary
- Bb. definitive
- Cc. rough order of magnitude
- Dd. final
2353. Which 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?- Aa. Definitive estimates
- Bb. Parametric estimates
- Cc. Bottom-up estimates
- Dd. Analogous estimate
2454. Analogous estimates are also known as _____ estimates.
- Aa. bottom-up
- Bb. top-down
- Cc. parametric
- Dd. budgetary
2555. Which of the following is true of analogous estimates?
- Aa. Their main disadvantage is that they cost more than other techniques.
- Bb. They are the only technique which do not require expert judgement.
- Cc. They are most reliable when previous projects are similar in fact with current projects.
- Dd. They use project characteristics in a mathematical model to estimate project costs.
2656. A 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.- Aa. budgetary
- Bb. parametric
- Cc. bottom-up
- Dd. analogous
2757. Which of the following is true of bottom-up estimates?
- Aa. They are based on the actual cost of a previous, similar project
- Bb. They are also known as parametric estimating
- Cc. They are most accurate when they involve large, extensive work items.
- Dd. They are time-intensive and expensive to develop
2858. _____ uses project characteristics in a mathematical model to estimate project costs.
- Aa. Rough order of magnitude estimating
- Bb. Parametric estimating
- Cc. Bottom-up estimating
- Dd. Analogous estimating
2959. Which of the following is most likely to be a reason for inaccuracies in information technology cost estimates?
- Aa. Estimates take a long time to be worked out.
- Bb. People lack estimating experience.
- Cc . Human beings are biased toward overestimation.
- Dd. Only software development provides the scope for estimates to be accurate.
3060. If 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.- Aa. budgetary
- Bb. definitive
- Cc. rough order of magnitude
- Dd. analogous
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- CIS 4375 Quiz on Chapter 7 M/C, created by . . on 27/09/2017.
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