Questions from Chapter Eleven

1.

Cost, time, and quality are known as:

	A.	Triple constraints
	B.	Three chapters of PMBOK
	C.	Tactical measurements
	D.	Project indicators

2.

Looking at a broad overview of the project costs is known as:

	A.	Auditing
	B.	Life cycle engineering
	C.	Life cycle costing
	D.	Value engineering

3.

Value analysis and value management are other names for:

	A.	Profitability
	B.	Life cycle management
	C.	Life cycle costing
	D.	Value engineering

4.

ROI and discounted cash flow are two examples of:

	A.	General management cost evaluation
	B.	Value management cost techniques
	C.	Project management cost evaluation
	D.	General cost techniques

5.

Heating and electricity are examples of ________ costs.

	A.	Strategic
	B.	Tactical
	C.	Direct
	D.	Indirect

6.

The project manager can have control over ________ costs.

	A.	Strategic
	B.	Tactical
	C.	Direct
	D.	Indirect

7.

Cost control is easiest to do ________ the project.

	A.	Early in
	B.	Late in
	C.	In the middle of
	D.	After

8.

The ________ gives the detail you need to correctly estimate costs for the project.

	A.	Scope Statement
	B.	Charter
	C.	SOW
	D.	WBS

9.

In the WBS, ________ hours is the suggested longest task duration.

	A.	20
	B.	8
	C.	40
	D.	60

10.

Historical information is a ________, not a _________.

	A.	Nuisance, fact
	B.	Guideline, blueprint
	C.	Fact, guess
	D.	Panacea, problem

11.

Historical information can be used as a guide, not as a blueprint because each project is ________.

	A.	Tactical
	B.	Important
	C.	Unique
	D.	Planned

12.

Equipment, materials, and people are three types of choices in ________.

	A.	Scope Statements
	B.	WBS
	C.	SOW
	D.	Resource pool description

13.

________ of resources play(s) an important part in how you choose people and materials for your project.

	A.	Descriptions
	B.	Firing
	C.	Cost
	D.	Quality

14.

Choosing to do a task in house or to outsource it may be an example of a(n) ________.

	A.	Tactical decision
	B.	Strategic decision
	C.	Management decision
	D.	Organizational policy

15.

When you are choosing a certain level of skills or mechanical efficiency, you are trading ________ for time.

	A.	Cost
	B.	Quality
	C.	People
	D.	Ideas

16.

The first place to look for expert judgment is often in ________.

	A.	PMI
	B.	Relatives
	C.	Your own organization
	D.	A vendor's organization

17.

In order to use a consultant well, you need to have your own _______ and _______ clearly understood as you engage the consultants.

	A.	People, managers
	B.	Expectations, requirements
	C.	Tasks, strategy
	D.	Requirements, hopes

18.

When using either associations or industry groups, it is always important to know what ________ went into the final numbers.

	A.	Thinking
	B.	Data
	C.	Tactics
	D.	Skills

19.

To determine the final number of resources needed for a large task, you ________ the ________ levels to get the next level higher.

	A.	Sum, lower
	B.	Divide, average
	C.	Multiply, higher
	D.	Sum, higher

20.

An estimate that has the range of 25% to +75 is called a(n) ________ estimate.

	A.	Definitive
	B.	Budget
	C.	Order of magnitude
	D.	Strategic

21.

The budget that has the range of 5% to +10% is called a(n) ________ estimate.

	A.	Capital
	B.	Order of magnitude
	C.	Budget
	D.	Definitive

22.

The budget that has the range of 10% to +25% is called a(n) ________ estimate.

	A.	Budget
	B.	Order of magnitude
	C.	Definitive
	D.	Capital

23.

Developing an approximation of the costs of the resources needed to complete project activity is ________.

	A.	Accounting
	B.	Cost control
	C.	Cost estimating
	D.	Budgeting

24.

Project team knowledge, commercial cost-estimating databases, and project files are all part of ________ used as an input into cost estimating.

	A.	Resource requirements
	B.	Estimating software
	C.	Historical information
	D.	Public information

25.

The document that shows the correct accounting category to list various cost estimates is called the ________.

	A.	Accounting system
	B.	Chart of accounts
	C.	Accounting method
	D.	Standard accounts

26.

Evaluating ________ is part of cost estimating.

	A.	Schedules
	B.	Personnel
	C.	Assignments
	D.	Risks

27.

Estimating cost by looking at previous projects is known as ________ estimating.

	A.	Analytical
	B.	Analogous
	C.	Strategic
	D.	Bid

28.

Analogous estimating is also known as ________ estimating.

	A.	Bottom-up
	B.	Parametric
	C.	Top-down
	D.	Top-to-bottom

29.

Summing the total of WBS tasks to find the total cost is known as ________ estimating.

	A.	Top-down
	B.	Analytical
	C.	Parametric
	D.	Bottom-up

30.

If you are using models that look at project characteristics to do cost estimating, you are doing ________.

	A.	Parametric modeling
	B.	Analytical thinking
	C.	Acute cost analysis
	D.	Model characterization

31.

In general, ________ estimating gives the most accurate picture of costs for doing cost estimating.

	A.	Analogous
	B.	Parametric modeling
	C.	Bottom-up
	D.	Top-down

32.

It is likely that the ________ estimate is the one that people remember most.

	A.	Last
	B.	First
	C.	Summary
	D.	Capital

33.

________ is a major part of keeping track of a string of estimates.

	A.	Cost estimating
	B.	Version control
	C.	Summary tracking
	D.	Line item identification

34.

The major output of cost budgeting is the ________.

	A.	Summary of costs
	B.	Capital budget
	C.	Cost baseline
	D.	Capital baseline

35.

Change requests should be noted ________ when they occur and become a part of the project record.

	A.	Often
	B.	Tactically
	C.	Permanently
	D.	Orally

36.

If you think that the costs you have incurred up to now are in some way atypical of the project and that the rest of the project will cost the original estimate, the formula for finding the EAC is:

	A.	EAC = (AC + (BAC-EV)/CPI)
	B.	EAC=AC + ETC
	C.	EAC=AC + BAC-EV.
	D.	EAC=AC + EV

37.

If you think that the costs you have incurred up to now are an indicator of what will happen for the rest of the project your formula for finding the EAC is:

	A.	EAC = (AC + (BAC-EV)/CPI)
	B.	EAC=AC + ETC
	C.	EAC=AC + BAC-EV.
	D.	EAC=AC + EV

38.

The CPI used in the above formula is a(n) ________.

	A.	Actual cost
	B.	Cost control
	C.	Cost schedule
	D.	Performance factor

39.

If you think that the costs to be incurred for the rest of the project were incorrectly estimated and use a new estimate for your EAC, the formula is:

	A.	EAC = (AC + (BAC-EV)/CPI)
	B.	EAC=AC + ETC
	C.	EAC=AC + BAC-EV.
	D.	EAC=AC +EV

40.

The abbreviation for the amount that was budgeted in order for work to be performed is:

	A.	EV
	B.	AC
	C.	PV
	D.	DC

41.

The abbreviation for costs actually incurred is:

	A.	EV
	B.	AC
	C.	PV
	D.	DC

42.

________ are costs that are not recoverable.

	A.	Capital costs
	B.	Real costs
	C.	Sunk costs
	D.	Overhead costs

43.

The amount of time it takes to recover the expenditure for the project before you begin to actually generate revenue is known as the ________.

	A.	Return on investment
	B.	Payback period
	C.	Selection period
	D.	Return period

44.

You can go from _______ to accelerated depreciation from one year to the following year but not the reverse.

	A.	Straight line depreciation
	B.	Capital expenditure methodology
	C.	Direct cost capitalization
	D.	Intermediate depreciation

45.

The best way to get a good bid from the vendor is to write a good ________ document.

	A.	Letter
	B.	Request
	C.	Risk Statement
	D.	Quality

46.

Detail of the WBS for doing your budgeting is found in the ________.

	A.	SOW
	B.	WBS dictionary
	C.	Schedule
	D.	Charter

47.

Costs that are expected to occur but the time when they will occur is not known are called?

	A.	Indirect
	B.	Tactical
	C.	Direct
	D.	Known unknowns

48.

What is your SPI if EV = 8 and PV = 6?

	A.	1.33
	B.	.66
	C.	1.0
	D.	.75

49.

What is your SPI if PV = 8 and EV = 6?

	A.	1.0
	B.	.75
	C.	1.33
	D.	2.0