Successful Project Management 7th Edition By Gido – Test Bank

Chapter 07
Gido & Clements

1. It is good practice to have the person who will be responsible for the costs associated with the work make the cost estimates.

a.

True

b.

False

ANSWER:

True

FEEDBACK:

Correct

It is good practice to have the person who will be responsible for the costs associated with the work make the cost estimates.

Incorrect

It is good practice to have the person who will be responsible for the costs associated with the work make the cost estimates.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

True / False

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.01 – 1. Estimate the cost of activities

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

2. Historical data can be used as a guide on the current project.

a.

True

b.

False

ANSWER:

True

FEEDBACK:

Correct

Historical data can be used as a guide on the current project.

Incorrect

Historical data can be used as a guide on the current project.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

True / False

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.01 – 1. Estimate the cost of activities

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

3. Cost estimates should be unreasonable and excessive.

a.

True

b.

False

ANSWER:

False

FEEDBACK:

Correct

Cost estimates should be reasonable and realistic.

Incorrect

Cost estimates should be reasonable and realistic.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

True / False

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.01 – 1. Estimate the cost of activities

NATIONAL STANDARDS:

United States – BUSPROG: Ethics

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

4. In many projects, large dollar amounts are expended for materials or services (subcontractors, consultants) that are used over a period of time longer than one cost reporting period.

a.

True

b.

False

ANSWER:

True

FEEDBACK:

Correct

In many projects, large dollar amounts are expended for materials or services (subcontractors, consultants) that are used over a period of time longer than one cost reporting period.

Incorrect

In many projects, large dollar amounts are expended for materials or services (subcontractors, consultants) that are used over a period of time longer than one cost reporting period.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

True / False

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.04 – 4. Describe how to accumulate actual costs

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

5. Committed costs are also known as discharged or postponed costs.

a.

True

b.

False

ANSWER:

False

FEEDBACK:

Correct

Committed costs are also known as commitments or encumbered costs.

Incorrect

Committed costs are also known as commitments or encumbered costs.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

True / False

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.04 – 4. Describe how to accumulate actual costs

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Knowledge

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

6. Cumulative actual cost (CAC) should be calculated to compare to the cumulative budgeted cost (CBC).

a.

True

b.

False

ANSWER:

True

FEEDBACK:

Correct

Cumulative actual cost (CAC) should be calculated to compare to the cumulative budgeted cost (CBC).

Incorrect

Cumulative actual cost (CAC) should be calculated to compare to the cumulative budgeted cost (CBC).

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

True / False

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.04 – 4. Describe how to accumulate actual costs

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

7. The percent complete estimate for a work package is subjective and requires an underestimated guess compared to the scope of the work package.

a.

True

b.

False

ANSWER:

False

FEEDBACK:

Correct

The percent complete estimate for a work package is subjective and requires an honest assessment compared to the scope of the work package.

Incorrect

The percent complete estimate for a work package is subjective and requires an honest assessment compared to the scope of the work package.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

True / False

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.05 – 5. Determine the earned value of work performed

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

8. When the CPI goes below 1.0 or gradually gets smaller, corrective action should not be taken, the project is performing well.

a.

True

b.

False

ANSWER:

False

FEEDBACK:

Correct

When the CPI goes below 1.0 or gradually gets smaller, corrective action should be taken.

Incorrect

When the CPI goes below 1.0 or gradually gets smaller, corrective action should be taken.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

True / False

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.06 – 6. Calculate and analyze key project performance measures

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

9. Based on analysis of actual cost it is possible to forecast what the total costs will be at the completion of the project or work package.

a.

True

b.

False

ANSWER:

True

FEEDBACK:

Correct

Based on analysis of actual cost it’s possible to forecast what the total costs will be at the completion of the project or work package.

Incorrect

Based on analysis of actual cost it’s possible to forecast what the total costs will be at the completion of the project or work package.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

True / False

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.06 – 6. Calculate and analyze key project performance measures

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

10. The key to effective cost control is to analyze cost performance on a regular and timely basis.

a.

True

b.

False

ANSWER:

True

FEEDBACK:

Correct

The key to effective cost control is to analyze cost performance on a regular and timely basis.

Incorrect

The key to effective cost control is to analyze cost performance on a regular and timely basis.

POINTS:

1

DIFFICULTY:

Easy

QUESTION TYPE:

True / False

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.07 – 7. Discuss and apply approaches to control the project budget

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Knowledge

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

11. If you put off corrective actions until some point in the distant future, the negative cost variance may deteriorate in the project.

a.

True

b.

False

ANSWER:

True

FEEDBACK:

Correct

If you put off corrective actions until some point in the distant future, the negative cost variance may deteriorate.

Incorrect

If you put off corrective actions until some point in the distant future, the negative cost variance may deteriorate.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

True / False

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.07 – 7. Discuss and apply approaches to control the project budget

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

12. In many cases, there will be a tradeoff, reducing cost variances will involve a reduction in project scope or a delay in the project schedule.

a.

True

b.

False

ANSWER:

True

FEEDBACK:

Correct

In many cases, there will be a tradeoff, reducing cost variances will involve a reduction in project scope or a delay in the project schedule.

Incorrect

In many cases, there will be a tradeoff, reducing cost variances will involve a reduction in project scope or a delay in the project schedule.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

True / False

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.07 – 7. Discuss and apply approaches to control the project budget

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

13. The key to effective cost control is waiting to address negative cost variances and cost inefficiencies after they are identified.

a.

True

b.

False

ANSWER:

False

FEEDBACK:

Correct

The key to effective cost control is aggressively addressing negative cost variances and cost inefficiencies as soon as they are identified.

Incorrect

The key to effective cost control is aggressively addressing negative cost variances and cost inefficiencies as soon as they are identified.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

True / False

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.07 – 7. Discuss and apply approaches to control the project budget

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

14. It is important to manage the cash flow on a project.

a.

True

b.

False

ANSWER:

True

FEEDBACK:

Correct

It is important to manage the cash flow on a project.

Incorrect

It is important to manage the cash flow on a project.

POINTS:

1

DIFFICULTY:

Easy

QUESTION TYPE:

True / False

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.08 – 8. Explain the importance of managing cash flow

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Knowledge

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

15. The key to managing cash flow is to ensure that cash comes in faster than it goes out.

a.

True

b.

False

ANSWER:

True

FEEDBACK:

Correct

The key to managing cash flow is to ensure that cash comes in faster than it goes out.

Incorrect

The key to managing cash flow is to ensure that cash comes in faster than it goes out.

POINTS:

1

DIFFICULTY:

Easy

QUESTION TYPE:

True / False

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.08 – 8. Explain the importance of managing cash flow

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Knowledge

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

16. The worst scenario from the contractor’s point of view is to have the customer make only one payment at the end of the project.

a.

True

b.

False

ANSWER:

True

FEEDBACK:

Correct

The worst scenario from the contractor’s point of view is to have the customer make only one payment at the end of the project.

Incorrect

The worst scenario from the contractor’s point of view is to have the customer make only one payment at the end of the project.

POINTS:

1

DIFFICULTY:

Easy

QUESTION TYPE:

True / False

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.08 – 8. Explain the importance of managing cash flow

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

17. The total project cost is often estimated during the ____ phase of the project or when the project charter or a proposal is prepared

a.

initiating

b.

planning

c.

performing

d.

closing

ANSWER:

a

FEEDBACK:

a.

The total project cost is often estimated during the initiating phase of the project or when the project charter or a proposal is prepared.

b.

The total project cost is often estimated during the initiating phase of the project or when the project charter or a proposal is prepared.

c.

The total project cost is often estimated during the initiating phase of the project or when the project charter or a proposal is prepared.

d.

The total project cost is often estimated during the initiating phase of the project or when the project charter or a proposal is prepared.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

Multiple Choice

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.01 – 1. Estimate the cost of activities

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

18. Labor costs in the project costs estimate are the estimated costs for the various types or classifications of ____ and are based on the estimated work time (not necessarily the same as the activity estimated duration) and the dollar labor rate for each.

a.

people who are expected to work on the project

b.

people, even if they are not directly assigned to the project

c.

overhead and direct expenses

d.

subcontractors

ANSWER:

a

FEEDBACK:

a.

Labor costs in the project costs estimate are estimated costs for the various types or classifications of people who are expected to work on the project and are based on the estimated work time (not necessarily the same as the activity estimated duration) and the dollar labor rate for each person or classification.

b.

Labor costs in the project costs estimate are estimated costs for the various types or classifications of people who are expected to work on the project and are based on the estimated work time (not necessarily the same as the activity estimated duration) and the dollar labor rate for each person or classification.

c.

Labor costs in the project costs estimate are estimated costs for the various types or classifications of people who are expected to work on the project and are based on the estimated work time (not necessarily the same as the activity estimated duration) and the dollar labor rate for each person or classification.

d.

Labor costs in the project costs estimate are estimated costs for the various types or classifications of people who are expected to work on the project and are based on the estimated work time (not necessarily the same as the activity estimated duration) and the dollar labor rate for each person or classification.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

Multiple Choice

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.01 – 1. Estimate the cost of activities

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

19. Materials costs in the project costs estimate are the estimated costs of materials that the project team or contractor

a.

want to have in supply in the office.

b.

needs even if not for this particular project.

c.

needs to purchase for the project.

d.

might want to use on the project.

ANSWER:

c

FEEDBACK:

a.

Materials costs in the project costs estimate are the estimated costs of materials that the project team or contractor needs to purchase for the project.

b.

Materials costs in the project costs estimate are the estimated costs of materials that the project team or contractor needs to purchase for the project.

c.

Materials costs in the project costs estimate are the estimated costs of materials that the project team or contractor needs to purchase for the project.

d.

Materials costs in the project costs estimate are the estimated costs of materials that the project team or contractor needs to purchase for the project.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

Multiple Choice

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.01 – 1. Estimate the cost of activities

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

20. Equipment costs in the project costs estimate are for equipment

a.

that the organization wants to have.

b.

that is the latest upgrade, even if not needed for the project.

c.

that must be purchased as part of the project.

d.

needed by others in the organization that may not be assigned to the project.

ANSWER:

c

FEEDBACK:

a.

Equipment costs in the project costs estimate are for equipment that must be purchased as part of the project.

b.

Equipment costs in the project costs estimate are for equipment that must be purchased as part of the project.

c.

Equipment costs in the project costs estimate are for equipment that must be purchased as part of the project.

d.

Equipment costs in the project costs estimate are for equipment that must be purchased as part of the project.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

Multiple Choice

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.01 – 1. Estimate the cost of activities

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

21. Facilities costs in the project costs estimate are for

a.

general facilities for the project organization.

b.

special facilities or additional space for the project team.

c.

special facilities or additional space for the organization where other projects will be in progress.

d.

storage of materials even if not for the project.

ANSWER:

b

FEEDBACK:

a.

Facilities costs in the project costs estimate are for special facilities or additional space for the project team, for security reasons, to store materials, or to build, assemble, and test the project end item (deliverable).

b.

Facilities costs in the project costs estimate are for special facilities or additional space for the project team, for security reasons, to store materials, or to build, assemble, and test the project end item (deliverable).

c.

Facilities costs in the project costs estimate are for special facilities or additional space for the project team, for security reasons, to store materials, or to build, assemble, and test the project end item (deliverable).

d.

Facilities costs in the project costs estimate are for special facilities or additional space for the project team, for security reasons, to store materials, or to build, assemble, and test the project end item (deliverable).

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

Multiple Choice

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.01 – 1. Estimate the cost of activities

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

22. Costs related to ____ are for outsourced work when the project teams or contractors do not have the expertise or resources to do certain project tasks.

a.

benefactors and suppliers

b.

stakeholders

c.

reserve and withholding

d.

subcontractors and consultants

ANSWER:

d

FEEDBACK:

a.

Subcontractors and consultants are outsourced for a project when project teams or contractors do not have the expertise or resources to do certain project tasks.

b.

Subcontractors and consultants are outsourced for a project when project teams or contractors do not have the expertise or resources to do certain project tasks.

c.

Subcontractors and consultants are outsourced for a project when project teams or contractors do not have the expertise or resources to do certain project tasks.

d.

Subcontractors and consultants are outsourced for a project when project teams or contractors do not have the expertise or resources to do certain project tasks.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

Multiple Choice

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.01 – 1. Estimate the cost of activities

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

23. Travel costs in the project costs estimate are for

a.

travel (other than local travel) required during the project.

b.

all travel by the organization.

c.

travel costs for local meetings.

d.

travel for conferences that may not be related to the project.

ANSWER:

a

FEEDBACK:

a.

Travel costs in the project costs estimate are for travel (other than local travel) required during the project.

b.

Travel costs in the project costs estimate are for travel (other than local travel) required during the project.

c.

Travel costs in the project costs estimate are for travel (other than local travel) required during the project.

d.

Travel costs in the project costs estimate are for travel (other than local travel) required during the project.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

Multiple Choice

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.01 – 1. Estimate the cost of activities

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

24. Contingency costs in the project costs estimate, also referred to as ____, are to cover unexpected situations that may come up during the project, such as items that may have been overlooked when the initial project scope was defined, activities that may have to be redone because they may not work the first time (redesigns), or a high probability or high impact risk that may occur.

a.

auxiliary funds

b.

withholding

c.

reserves

d.

capital funds

ANSWER:

c

FEEDBACK:

a.

Contingency costs in the project costs estimate, also referred to as reserves, are to cover unexpected situations that may come up during the project, such as items that may have been overlooked when the initial project scope was defined, activities that may have to be redone because they may not work the first time (redesigns), or a high probability or high impact risk that may occur.

b.

Contingency costs in the project costs estimate, also referred to as reserves, are to cover unexpected situations that may come up during the project, such as items that may have been overlooked when the initial project scope was defined, activities that may have to be redone because they may not work the first time (redesigns), or a high probability or high impact risk that may occur.

c.

Contingency costs in the project costs estimate, also referred to as reserves, are to cover unexpected situations that may come up during the project, such as items that may have been overlooked when the initial project scope was defined, activities that may have to be redone because they may not work the first time (redesigns), or a high probability or high impact risk that may occur.

d.

Contingency costs in the project costs estimate, also referred to as reserves, are to cover unexpected situations that may come up during the project, such as items that may have been overlooked when the initial project scope was defined, activities that may have to be redone because they may not work the first time (redesigns), or a high probability or high impact risk that may occur.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

Multiple Choice

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.01 – 1. Estimate the cost of activities

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

25. At the beginning of the project, it may not be possible to estimate the costs for all activities with a level of confidence regarding their accuracy. This is especially true for

a.

projects with a short term.

b.

longer-term projects.

c.

projects that are similar to ones completed by the organization before.

d.

projects with activities that are serially related.

ANSWER:

b

FEEDBACK:

a.

At the beginning of the project, it may not be possible to estimate the costs for all activities with a level of confidence regarding their accuracy. This is especially true for longer-term projects.

b.

At the beginning of the project, it may not be possible to estimate the costs for all activities with a level of confidence regarding their accuracy. This is especially true for longer-term projects.

c.

At the beginning of the project, it may not be possible to estimate the costs for all activities with a level of confidence regarding their accuracy. This is especially true for longer-term projects.

d.

At the beginning of the project, it may not be possible to estimate the costs for all activities with a level of confidence regarding their accuracy. This is especially true for longer-term projects.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

Multiple Choice

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.01 – 1. Estimate the cost of activities

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

26. It may be easier to estimate the costs for ____, but as the project progresses, the project team can progressively elaborate the estimated costs as more information is known or becomes clear to allow for more accurate estimated costs.

a.

near-term activities

b.

activities near the end of the project

c.

new activities with new procedures

d.

activities with long durations

ANSWER:

a

FEEDBACK:

a.

It may be easier to estimate the costs for near-term activities, but as the project progresses, the project team can progressively elaborate the estimated costs as more information is known or becomes clear to allow for more accurate estimated costs.

b.

It may be easier to estimate the costs for near-term activities, but as the project progresses, the project team can progressively elaborate the estimated costs as more information is known or becomes clear to allow for more accurate estimated costs.

c.

It may be easier to estimate the costs for near-term activities, but as the project progresses, the project team can progressively elaborate the estimated costs as more information is known or becomes clear to allow for more accurate estimated costs.

d.

It may be easier to estimate the costs for near-term activities, but as the project progresses, the project team can progressively elaborate the estimated costs as more information is known or becomes clear to allow for more accurate estimated costs.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

Multiple Choice

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.01 – 1. Estimate the cost of activities

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

27. The project cost estimate is allocated to

a.

the various work packages in the project work breakdown structure.

b.

the resources in the project.

c.

the committed costs in the project.

d.

the stakeholders.

ANSWER:

a

FEEDBACK:

a.

The project cost estimate is allocated to the various work packages in the project work breakdown structure.

b.

The project cost estimate is allocated to the various work packages in the project work breakdown structure.

c.

The project cost estimate is allocated to the various work packages in the project work breakdown structure.

d.

The project cost estimate is allocated to the various work packages in the project work breakdown structure.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

Multiple Choice

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.02 – 2. Aggregate the total budgeted cost

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

28. The budget for each work package is

a.

charged completely on the first day of the work package.

b.

charged at the end of the project.

c.

distributed over the duration of the work package.

d.

charged completely on the last day of the work package.

ANSWER:

c

FEEDBACK:

a.

The budget for each work package is distributed over the duration of the work package.

b.

The budget for each work package is distributed over the duration of the work package.

c.

The budget for each work package is distributed over the duration of the work package.

d.

The budget for each work package is distributed over the duration of the work package.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

Multiple Choice

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.02 – 2. Aggregate the total budgeted cost

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

29. Allocating total project costs for the various elements to the appropriate work packages will establish

a.

the committed costs for the work package.

b.

the anticipated expense for the work package.

c.

how to apply resources to the work package.

d.

a total budgeted cost (TBC) for each work package.

ANSWER:

d

FEEDBACK:

a.

Allocating total project costs for the various elements to the appropriate work packages will establish a total budgeted cost (TBC) for each work package.

b.

Allocating total project costs for the various elements to the appropriate work packages will establish a total budgeted cost (TBC) for each work package.

c.

Allocating total project costs for the various elements to the appropriate work packages will establish a total budgeted cost (TBC) for each work package.

d.

Allocating total project costs for the various elements to the appropriate work packages will establish a total budgeted cost (TBC) for each work package.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

Multiple Choice

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.02 – 2. Aggregate the total budgeted cost

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM

30. There are two approaches to establishing the total budgeted cost for each work package:

a.

top-down and bottom-up.

b.

horizontal and vertical.

c.

committed and actual.

d.

aggregated and disaggregated.

ANSWER:

a

FEEDBACK:

a.

There are two approaches to establishing the TBC for each work package: top-down and bottom-up.

b.

There are two approaches to establishing the TBC for each work package: top-down and bottom-up.

c.

There are two approaches to establishing the TBC for each work package: top-down and bottom-up.

d.

There are two approaches to establishing the TBC for each work package: top-down and bottom-up.

POINTS:

1

DIFFICULTY:

Moderate

QUESTION TYPE:

Multiple Choice

HAS VARIABLES:

False

LEARNING OBJECTIVES:

SUPM.GIDO.15.07.02 – 2. Aggregate the total budgeted cost

NATIONAL STANDARDS:

United States – BUSPORG: Comprehension – BUSPORG:Comprehension

KEYWORDS:

Bloom’s: Comprehension

DATE CREATED:

4/5/2016 10:14 AM

DATE MODIFIED:

4/5/2016 10:14 AM