Quiz: Basic Project Cost Management Principles!

38 Questions | Total Attempts: 3209

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Quiz: Basic Project Cost Management Principles!

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Questions and Answers
  • 1. 
    • A. 

      Learning Curve Theory

    • B. 

      Life Cycle Costsing

    • C. 

      Parametric Modeling

    • D. 

      Rate of Performance

  • 2. 
    Costs that can be directly related to producing the products and services of the project.
    • A. 

      Cost Budgeting

    • B. 

      Budget at Completion

    • C. 

      Direct Costs

    • D. 

      Earned Value

  • 3. 
    A time-phased budget that project managers use to measure and monitor cost performance.
    • A. 

      Cost Baseline

    • B. 

      Cost Budgeting

    • C. 

      Cost Estimating

    • D. 

      Cost Variance

  • 4. 
    Costs that are not directly related to the products or services of the project, but are indirectly related to performing the project.
    • A. 

      Intangible Costs

    • B. 

      Sunk Cost

    • C. 

      Tangible Costs

    • D. 

      Indirect Costs

  • 5. 
    A document that describeshow cost variances will be managed on the project.
    • A. 

      Analogous Estimate

    • B. 

      Cost Management Plan

    • C. 

      Earned Value Managment

    • D. 

      Estimate at Completion

  • 6. 
    The processes required to ensure that the project is completed within the approved budget.
    • A. 

      Management Reserves

    • B. 

      Project Cost Management

    • C. 

      Rate of Performance

    • D. 

      Planned Value

  • 7. 
    • A. 

      Actual Cost

    • B. 

      Direct Cost

    • C. 

      Sunk Cost

    • D. 

      Indirect Cost

  • 8. 
    An estimate of the value of the physical work actually completed.
    • A. 

      Earned Value

    • B. 

      Earned Value Management

    • C. 

      Direct Costs

    • D. 

      Actual Cost

  • 9. 
    The ratio between revenues and profits.
    • A. 

      Profit Margin

    • B. 

      Planned Value

    • C. 

      Profits

    • D. 

      Actual Costs

  • 10. 
    A cost estimating technique based on estimating individual work items and summing them to get a project total.
    • A. 

      Analogous Estimates

    • B. 

      Bottom-Up Estimates

    • C. 

      Definitive Estimate

    • D. 

      Parametric Estimate

  • 11. 
    Dollars included in a cost estimate to mitigate cost risk by allowing for future situations that are difficult to predict.
    • A. 

      Management Reserves

    • B. 

      Reserves

    • C. 

      Project Cost Management

    • D. 

      Cash Flow Analysis

  • 12. 
    A cost estimate that provides an accurate estimate of project costs.
    • A. 

      Baseline

    • B. 

      Direct Costs

    • C. 

      Definitive Estimate

    • D. 

      Contigency Reserves

  • 13. 
    The earned value minus the actual cost.
    • A. 

      Cost Control

    • B. 

      Actual Cost

    • C. 

      Cost Variance

    • D. 

      Earned Value

  • 14. 
    The original project plan plus approved changes.
    • A. 

      Cost Management Plan

    • B. 

      Cost Baseline

    • C. 

      Baseline

    • D. 

      Cost Control

  • 15. 
    The original total budget for a project.
    • A. 

      Estimate at Completion

    • B. 

      Budget at Completion

    • C. 

      Cost Performatnce Index

    • D. 

      Schedule Performance Index

  • 16. 
    A cost estimate used to allocate money into an organization's budget.
    • A. 

      Cost Budgeting

    • B. 

      Budgetary Estimate

    • C. 

      Cost Management Plan

    • D. 

      Definitive Estimate

  • 17. 
    The portion of approved total cost estimate planned to be spent on an activity during a given period.
    • A. 

      Actual Cost

    • B. 

      Rough Order of Magnitude

    • C. 

      Planned Value

    • D. 

      Life Cycle Costing

  • 18. 
    The additional percentage or dollar amount by which actual cost exceed estimates.
  • 19. 
    A theory that states that when many item are produced repetitively, the unit cost of those items normally decreases in a regular pattern as more units are produced.
    • A. 

      Rough Order of Magnitude

    • B. 

      Learning Curve Theory

    • C. 

      Life Cycle Costing

    • D. 

      Planned Value

  • 20. 
    The earned value minus the planned value.
    • A. 

      Schedule Variance

    • B. 

      Schedule Performance Index

    • C. 

      Project Cost Managment

    • D. 

      Management Reserves

  • 21. 
    Dollars included in a cost estimate to allow for future situations that may be partially planned fo (sometimes called known unknowns) and are included in the project cost baseline.
    • A. 

      Contingency Reserves

    • B. 

      Cost Budgeting

    • C. 

      Definitive Estimate

    • D. 

      Estimate at Completion

  • 22. 
    A cost-estimating technique that uses project characteristics (parameters) in a mathematical model to estimate project costs.
    • A. 

      Learning Curve Theory

    • B. 

      Life Cycle Costing

    • C. 

      Parametric Modeling

    • D. 

      Planned Value

  • 23. 
    Costs or benefits that can be easily measured in dollars.
    • A. 

      Tangible Costs

    • B. 

      Schedule Variance

    • C. 

      Management Reserves

    • D. 

      Indirect Costs

  • 24. 
    An estimate of what it will cost to complete the project based on performance to date.
    • A. 

      Definative Estimate

    • B. 

      Cost Estimating

    • C. 

      Analogous Estimate

    • D. 

      Estimate at Completion

  • 25. 
    The total of direct and indirect costs incurred in accomplishing work on an activity during a given period.
    • A. 

      Earned value (EV)

    • B. 

      Actual Cost (AC)

    • C. 

      Schedule Variance (SV)

    • D. 

      Budget at Completion (BAC)

  • 26. 
    Controlling changes to the project budget.
    • A. 

      Cost Baseline

    • B. 

      Cost Control

    • C. 

      Cost Estimating

    • D. 

      Cost Management Plan

  • 27. 
    The ratio of earned value to planned value; can be used to estimate the projected time to complete a project.
    • A. 

      Indirect Costs

    • B. 

      Life Cycle Costing

    • C. 

      Schedule Variance (SV)

    • D. 

      Schedule Performance Index (SPI)

  • 28. 
    A cost estimating technique that uses the actual cost of a previous, similar project as the basis for estimating the cost of the current project, also called top-down estimates.
    • A. 

      Estimate at Completion

    • B. 

      Definitive Estimate

    • C. 

      Cost Estimating

    • D. 

      Analogous Estimate

  • 29. 
    The processes required to ensure that the project is completed within the apporved budget.
    • A. 

      Project Cost Management

    • B. 

      Parametric Modeling

    • C. 

      Rate of Performance

    • D. 

      Schedule Performance Index

  • 30. 
    A method for determining the estimated annual costs and benefits for a project.
    • A. 

      Budgetary Estimate

    • B. 

      Cost Control

    • C. 

      Cash Flow Analysis

    • D. 

      Cost Budget

  • 31. 
    Costs or benefits that are difficult to measure in monetary terms.
    • A. 

      Indirect Costs

    • B. 

      Intangible Costs

    • C. 

      Actual Costs

    • D. 

      Sunk Costs

  • 32. 
    Allocating the overall cost estimate to individual work items to establish a baseline for measuring performance.
    • A. 

      Contigency Reserves

    • B. 

      Cost Baseline

    • C. 

      Cost Budgeting

    • D. 

      Cost Control

  • 33. 
    Dollars included in a cost estimate to allow for future situations that are unpredictable (sometimes called unknown unknowns).
    • A. 

      Managment Reserves

    • B. 

      Parametric Modeling

    • C. 

      Reserves

    • D. 

      Rough Order of Magnitude

  • 34. 
    The ratio of actual work completed to the percentage of workplanned to have been completed at any given time during the life of the project or activity.
    • A. 

      Learning Curve Theory

    • B. 

      Parametric Modeling

    • C. 

      Rate of Performance (RP)

    • D. 

      Schedule Variance (SV)

  • 35. 
    A project performance measurement technique that integratees scope, time, and cost data.
    • A. 

      Earned Value

    • B. 

      Cost Variance

    • C. 

      Earned Value Management

    • D. 

      Cost Baseline

  • 36. 
    The ratio of earned value to actual cost; can be used to estimate the projected cost to complete the project.
    • A. 

      Budget at Completion

    • B. 

      Cost Performance Index

    • C. 

      Cost Variance

    • D. 

      Cost Estimating

  • 37. 
    Revenues minus expenses.
    • A. 

      Profit Margin

    • B. 

      Profit

    • C. 

      Reserves

    • D. 

      Indirect Costs

  • 38. 
    The ratio of actual work completed to the percentage of work planned to have been completed at any given time during the life of the project or activity.
    • A. 

      Learning Curve Theory

    • B. 

      Rate of Performance

    • C. 

      Management Reserves

    • D. 

      Rough Order of Magnitude