Project Cost Management Planning

20 Questions | By Babjam | Updated: Mar 18, 2022 | Attempts: 249

Questions

Settings

Create your own Quiz

Questions and Answers

1.

____ estimates use the actual cost of a previous, similar project as the basis for estimating the cost of the current project.
- A.
  
  Actual
- B.
  
  Parametric
- C.
  
  Bottom-up
- D.
  
  Analogous
2.

Many projects, particularly information technology projects, do not have good planning information, so tracking performance against a plan might produce misleading information
- A.
  
  True
- B.
  
  False
3.

Parametric models are most reliable when the historical information that was used to create the model is accurate, the parameters are readily quantifiable, and the model is flexible in terms of the size of the project.
- A.
  
  True
- B.
  
  False
4.

____ is a method for determining the estimated annual costs and benefits for a project and the resulting annual cash flow.
- A.
  
  Life cycle costing
- B.
  
  Profit margin analysis
- C.
  
  Cash flow analysis
- D.
  
  Cost estimating
5.

____ is the ratio of revenues to profits
- A.
  
  Profit
- B.
  
  Profit margin
- C.
  
  Cost structure
- D.
  
  Cost margin
6.

The ____ is the ratio of earned value to actual cost and can be used to estimate the projected cost of completing theproject
- A.
  
  SV
- B.
  
  CV
- C.
  
  CPI
- D.
  
  SPI
7.

When deciding what projects to invest in or continue, you should include sunk costs
- A.
  
  True
- B.
  
  False
8.

____ involves developing an approximation or estimate of the costs of the resources needed to complete a project
- A.
  
  Cost budgeting
- B.
  
  Cost consolidation
- C.
  
  Cost control
- D.
  
  Cost estimating
9.

Cost budgeting provides information for project funding requirements.
- A.
  
  True
- B.
  
  False
10.

Preparing cost estimates is a job for accountants.
- A.
  
  True
- B.
  
  False
11.

____ allow for future situations that are unpredictable
- A.
  
  Contingency reserves
- B.
  
  Management reserves
- C.
  
  Known unknowns
- D.
  
  Indirect reserve
12.

In an earned value chart, when the actual cost line is right on or above the earned value line, costs are equal to or less than planned.
- A.
  
  True
- B.
  
  False
13.

Many projects that are started never finish because of cost management problems.
- A.
  
  True
- B.
  
  False
14.

A(n) ____ estimate is used for making many purchasing decisions for which accurate estimates are required and for estimating final project costs.
- A.
  
  Budgetary
- B.
  
  Definitive
- C.
  
  Rough order of magnitude
- D.
  
  Final
15.

____ is a project performance measurement technique that integrates scope, time, and cost data.
- A.
  
  Cost baseline
- B.
  
  Earned value management
- C.
  
  Constructive Cost Modeling
- D.
  
  Parametric modeling
16.

If a project manager gets sick for two weeks or an important supplier goes out of business, management reserve could be set aside to cover the resulting costs.
- A.
  
  True
- B.
  
  False
17.

The ____ is an estimate of what it will cost to complete the project based on performance to date.
- A.
  
  CPI
- B.
  
  SV
- C.
  
  EAC
- D.
  
  SPI
18.

A(n) ____ is a time-phased budget that project managers use to measure and monitor cost performance.
- A.
  
  Budget baseline
- B.
  
  Ledger
- C.
  
  Cost baseline
- D.
  
  Cost line
19.

The WBS is not a required input to the cost budgeting process.
- A.
  
  True
- B.
  
  False
20.

If the cost performance index is less than one or less than 100 percent, the project is under budget.
- A.
  
  True
- B.
  
  False