Chapter 7 Project Cost Management Completion

Chapter 7 - Project Cost Management Completion 71. The additional percentage or dollar amount by which actual costs exceed estimates is known as a(n) _____. ANSWER: POINTS: DIFFICULTY: REFERENCES: QUESTIONTYPE: HASVARIABLES: LEARNINGOBJECTIVES: NATIONALSTANDARDS: TOPICS: KEYWORDS: DATECREATED: DATEMODIFIED: overrun 1 Difficulty: Easy p.286 Completion False INFO.SCHW.14.48 - LO: 7-1 United States - BUSPROG: Analytic The Importance of Project Cost Management Bloom's: Knowledge 72. Accountants define _____ as a resource sacrificed or foregone to to achieve a specific objective. ANSWER: cost POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.287 QUESTIONTYPE: Completion HASVARIABLES: False LEARNINGOBJECTIVES: INFO.SCHW.14.48 - LO: 7-1 NATIONALSTANDARDS: United States - BUSPROG: Analytic TOPICS: The Importance of Project Cost Management KEYWORDS: Bloom's: Knowledge DATECREATED: DATEMODIFIED: 73. The main output of the planning cost management process is a(n) _____. ANSWER: cost management plan POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.288 QUESTIONTYPE: Completion HASVARIABLES: False LEARNINGOBJECTIVES: INFO.SCHW.14.48 - LO: 7-1 NATIONALSTANDARDS: United States - BUSPROG: Analytic TOPICS: The Importance of Project Cost Management KEYWORDS: Bloom's: Knowledge DATECREATED: DATEMODIFIED: 74. The main outputs of the _____ process are activity cost estimates, basis of estimates, and project document updates. ANSWER: cost estimating POINTS: 1 Page35 Chapter 7 - Project Cost Management DIFFICULTY: REFERENCES: QUESTIONTYPE: HASVARIABLES: LEARNINGOBJECTIVES: NATIONALSTANDARDS: TOPICS: KEYWORDS: DATECREATED: DATEMODIFIED: Difficulty: Easy p.288 Completion False INFO.SCHW.14.48 - LO: 7-1 United States - BUSPROG: Analytic The Importance of Project Cost Management Bloom's: Knowledge 75. The main outputs of the _____ process are a cost performance baseline, project funding requirements, and project document updates. ANSWER: cost budgeting POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.288 QUESTIONTYPE: Completion HASVARIABLES: False LEARNINGOBJECTIVES: INFO.SCHW.14.48 - LO: 7-1 NATIONALSTANDARDS: United States - BUSPROG: Analytic TOPICS: The Importance of Project Cost Management KEYWORDS: Bloom's: Knowledge DATECREATED: DATEMODIFIED: 76. _____ are revenues minus expenditures. ANSWER: POINTS: DIFFICULTY: REFERENCES: QUESTIONTYPE: HASVARIABLES: LEARNINGOBJECTIVES: NATIONALSTANDARDS: TOPICS: KEYWORDS: DATECREATED: DATEMODIFIED: Profits 1 Difficulty: Easy p.290 Completion False INFO.SCHW.14.49 - LO: 7-2 United States - BUSPROG: Analytic Basic Principles of Cost Management Bloom's: Knowledge 77. _____ costing helps to see a big-picture view of the cost of a project throughout its life cycle. ANSWER: Life cycle POINTS: 1 DIFFICULTY: Difficulty: Easy Page36 Chapter 7 - Project Cost Management REFERENCES: QUESTIONTYPE: HASVARIABLES: LEARNINGOBJECTIVES: NATIONALSTANDARDS: TOPICS: KEYWORDS: DATECREATED: DATEMODIFIED: p.290 Completion False INFO.SCHW.14.49 - LO: 7-2 United States - BUSPROG: Analytic Basic Principles of Cost Management Bloom's: Knowledge 78. _____ costing considers the total cost of ownership, or development plus support costs, for a project. ANSWER: Life cycle POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.290 QUESTIONTYPE: Completion HASVARIABLES: False LEARNINGOBJECTIVES: INFO.SCHW.14.49 - LO: 7-2 NATIONALSTANDARDS: United States - BUSPROG: Analytic TOPICS: Basic Principles of Cost Management KEYWORDS: Bloom's: Knowledge DATECREATED: DATEMODIFIED: 79. Project managers must conduct cash flow analysis to determine _____. ANSWER: net present value POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.292 QUESTIONTYPE: Completion HASVARIABLES: False LEARNINGOBJECTIVES: INFO.SCHW.14.49 - LO: 7-2 NATIONALSTANDARDS: United States - BUSPROG: Analytic TOPICS: Basic Principles of Cost Management KEYWORDS: Bloom's: Knowledge DATECREATED: DATEMODIFIED: 80. _____ theory states that when many items are produced repetitively, the unit cost of those items decreases in a regular pattern as more units are produced. ANSWER: Learning curve POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.293 Page37 Chapter 7 - Project Cost Management QUESTIONTYPE: HASVARIABLES: LEARNINGOBJECTIVES: NATIONALSTANDARDS: TOPICS: KEYWORDS: DATECREATED: DATEMODIFIED: Completion False INFO.SCHW.14.49 - LO: 7-2 United States - BUSPROG: Analytic Basic Principles of Cost Management Bloom's: Knowledge 81. Project costs, like project schedules, grow out of the basic documents that initiate a project, like the _____. ANSWER: project charter POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.294 QUESTIONTYPE: Completion HASVARIABLES: False LEARNINGOBJECTIVES: INFO.SCHW.14.50 - LO: 7-3 NATIONALSTANDARDS: United States - BUSPROG: Analytic TOPICS: Planning Cost Management KEYWORDS: Bloom's: Knowledge DATECREATED: DATEMODIFIED: 82. A(n) _____ estimate is done very early in a project or even before a project is officially started. ANSWER: rough order of magnitude (ROM) ROM rough order of magnitude POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.295 QUESTIONTYPE: Completion HASVARIABLES: False LEARNINGOBJECTIVES: INFO.SCHW.14.51 - LO: 7-4 NATIONALSTANDARDS: United States - BUSPROG: Analytic TOPICS: Estimating Costs KEYWORDS: Bloom's: Knowledge DATECREATED: DATEMODIFIED: 83. The time frame for a(n) _____ estimate is often three or more years prior to project completion. ANSWER: rough order of magnitude (ROM) ROM rough order of magnitude POINTS: 1 Page38 Chapter 7 - Project Cost Management DIFFICULTY: REFERENCES: QUESTIONTYPE: HASVARIABLES: LEARNINGOBJECTIVES: NATIONALSTANDARDS: TOPICS: KEYWORDS: DATECREATED: DATEMODIFIED: Difficulty: Easy p.295 Completion False INFO.SCHW.14.51 - LO: 7-4 United States - BUSPROG: Analytic Estimating Costs Bloom's: Knowledge 84. In practice, many people find that using a combination or hybrid approach involving analogous, bottom up, and/or parametric modeling provides the best _____. ANSWER: cost estimates POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.298 QUESTIONTYPE: Completion HASVARIABLES: False LEARNINGOBJECTIVES: INFO.SCHW.14.51 - LO: 7-4 NATIONALSTANDARDS: United States - BUSPROG: Analytic TOPICS: Estimating Costs KEYWORDS: Bloom's: Knowledge DATECREATED: DATEMODIFIED: 85. ________ are a means of measuring software size based on what the software does for end users. ANSWER: Function points POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.301 QUESTIONTYPE: Completion HASVARIABLES: False LEARNINGOBJECTIVES: INFO.SCHW.14.51 - LO: 7-4 NATIONALSTANDARDS: United States - BUSPROG: Analytic TOPICS: Estimating Costs KEYWORDS: Bloom's: Knowledge DATECREATED: DATEMODIFIED: 86. A(n) _____ is a time-phased budget that project managers use to measure and monitor cost performance. ANSWER: cost baseline POINTS: 1 DIFFICULTY: Difficulty: Easy Page39 Chapter 7 - Project Cost Management REFERENCES: QUESTIONTYPE: HASVARIABLES: LEARNINGOBJECTIVES: NATIONALSTANDARDS: TOPICS: KEYWORDS: DATECREATED: DATEMODIFIED: p.305 Completion False INFO.SCHW.14.52 - LO: 7-5 United States - BUSPROG: Analytic Determining the Budget Bloom's: Knowledge 87. A cost management plan is a subsidiary of the _____ plan. ANSWER: project management POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.306 QUESTIONTYPE: Completion HASVARIABLES: False LEARNINGOBJECTIVES: INFO.SCHW.14.52 - LO: 7-5 NATIONALSTANDARDS: United States - BUSPROG: Analytic TOPICS: Determining the Budget KEYWORDS: Bloom's: Knowledge DATECREATED: DATEMODIFIED: 88. In addition to providing input for budgetary estimates, the process of _____ provides a cost baseline. ANSWER: cost budgeting POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.305 QUESTIONTYPE: Completion HASVARIABLES: False LEARNINGOBJECTIVES: INFO.SCHW.14.52 - LO: 7-5 NATIONALSTANDARDS: United States - BUSPROG: Analytic TOPICS: Determining the Budget KEYWORDS: Bloom's: Knowledge DATECREATED: DATEMODIFIED: 89. _____ is a project performance measurement technique that integrates scope, time, and cost data. ANSWER: Earned value management EVM Earned value management (EVM) Page40 Chapter 7 - Project Cost Management POINTS: DIFFICULTY: REFERENCES: QUESTIONTYPE: HASVARIABLES: LEARNINGOBJECTIVES: NATIONALSTANDARDS: TOPICS: KEYWORDS: DATECREATED: DATEMODIFIED: 1 Difficulty: Easy p.307 Completion False INFO.SCHW.14.53 - LO: 7-6 United States - BUSPROG: Analytic Controlling Costs Bloom's: Knowledge 90. The cost incurred for the work performed on an activity during a specific time period is known as the _____. ANSWER: actual cost AC actual cost (AC) POINTS: DIFFICULTY: REFERENCES: QUESTIONTYPE: HASVARIABLES: LEARNINGOBJECTIVES: NATIONALSTANDARDS: TOPICS: KEYWORDS: DATECREATED: DATEMODIFIED: 1 Difficulty: Easy p.307 Completion False INFO.SCHW.14.53 - LO: 7-6 United States - BUSPROG: Analytic Controlling Costs Bloom's: Knowledge 91. The _____ is the measure of work performed expressed in terms of the budget authorized for that work. ANSWER: earned value EV earned value (EV) POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.307 QUESTIONTYPE: Completion HASVARIABLES: False LEARNINGOBJECTIVES: INFO.SCHW.14.53 - LO: 7-6 NATIONALSTANDARDS: United States - BUSPROG: Analytic TOPICS: Controlling Costs KEYWORDS: Bloom's: Knowledge DATECREATED: DATEMODIFIED: Page41 Chapter 7 - Project Cost Management 92. The _____ index is the ratio of earned value to planned value. ANSWER: schedule performance POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.309 QUESTIONTYPE: Completion HASVARIABLES: False LEARNINGOBJECTIVES: INFO.SCHW.14.53 - LO: 7-6 NATIONALSTANDARDS: United States - BUSPROG: Analytic TOPICS: Controlling Costs KEYWORDS: Bloom's: Knowledge DATECREATED: DATEMODIFIED: 93. The cost performance index can be used to calculate the _____ which gives an approximate cost of completing a project based on performance to date. ANSWER: estimate at completion EAC estimate at completion (EAC) POINTS: DIFFICULTY: REFERENCES: QUESTIONTYPE: HASVARIABLES: LEARNINGOBJECTIVES: NATIONALSTANDARDS: TOPICS: KEYWORDS: DATECREATED: DATEMODIFIED: 1 Difficulty: Easy p.309 Completion False INFO.SCHW.14.53 - LO: 7-6 United States - BUSPROG: Analytic Controlling Costs Bloom's: Knowledge Essay 94. List and briefly describe the four project cost management processes. ANSWER: The four processes for project cost management are as follows: (1) Planning cost management involves determining the policies, procedures, and documentation that will be used for planning, executing, and controlling project cost. The main output of this process is a cost management plan. (2) Estimating costs involves developing an approximation or estimate of the costs of the resources needed to complete a project. The main outputs of the cost estimating process are activity cost estimates, basis of estimates, and project document updates. (3) Determining the budget involves allocating the overall cost estimate to individual work items to establish a baseline for measuring performance. The main outputs of the cost budgeting process are a Page42