Cost Management

Question 0

The most important output of the Plan Cost Management process is the:

Answer 0

Cost Management Plan

Question 1

Which process provides direction on how the project costs will be managed throughout the project?

Answer 1

Plan Cost Management

Question 2

What is another name for Analogous Estimating?

Answer 2

Top-Down Estimating

Question 3

__________ ___________ involves using the actual costs of previous, similar project to estimate the cost of the current project. it is a gross value approach which is often used at the beginning of a project when there is little specific detail?

Answer 3

Analogous Estimating

Question 4

Parametric Estimating involves using a ________ ________ between historical data and other variables in UNIT VALUE form to calculate cost estimates. Sine in previous similar projects, it took $100 to develop each web page, we estimate that 4,000 pages will cost $400,000.

Answer 4

Statistical Relationship

Question 5

Bottom-up Estimating involves estimating the cost of individual work packages or individual schedule __________ with the greatest level of specific detail. Detailed cost is then summarized or “rolled-up” to higher levels for subsequent reporting and tracking purposes.

Answer 5

Activities

Question 6

Three-Point Estimating can be used to improve the accuracy of ______ ______ _______ by using three values (______, _________, ________ ________), instead of one to account for estimating uncertainty.

Answer 6

Activity Cost Estimates; Pessimistic; Optimistic; Most Likely

Question 7

What is Reserve Analysis?

Answer 7

Where established appropriate cost reserves for unknown situations. Two types of reserves may be considered: Contingency Reserves and Management Reserves

Question 8

_______ _______ ________ involves asking vendors to submit bids for project, or certain portions of it. We plan to buy 20 computers to work on the web pages, so the bids received from the vendors help us to develop a more realistic cost estimate for the project.

Answer 8

Vendor Bid Analysis

Question 9

What is the accuracy for a Rough Order of Magnitude (ROM) estimate?

Answer 9

-25% to +75%

Question 10

What is the accuracy for a Budget estimate?

Answer 10

-10% to +25%

Question 11

What is Cost of Quality?

Answer 11

It involves determining the costs associated with conforming to the quality requirements of the project.

Question 12

What is the accuracy for a Definitive estimate?

Answer 12

-5% to +10%

Question 13

The Estimate Costs process should be performed in parallel with which Time Process?

Answer 13

Estimate Activity Resources

Question 14

How are costs estimates derived with bottom-up estimating?

Answer 14

Estimates from Work Packages or activities are rolled up or summarized at higher levels.

Question 15

Determine Budget is the process of ___________ the _______ _______ of individual activities or work packages to establish an authorized cost baseline.

Answer 15

Aggregating; estimated costs

Question 16

What is Cost Aggregation?

Answer 16

Aggregate of the Activity Costs Estimates for all activities or Work Packages to derive an approved cost baseline for the entire project.

Question 17

What is the Cost Baseline?

Answer 17

The approved version of the time-phased project budget, excluding any management reserves, which can be changed only through formal change control procedures as is used as a basis for comparison to actual results.

Question 18

What is a performance measurement technique which integrates project scope, cost, and schedule measures to help assess project performance and progress. It can also be referred to as the Performance Measurement Baseline (PMB).

Answer 18

Earned Value Management (EVM)

Question 19

Any increase to the authorized budget can only be approved through ________.

Answer 19

Perform Integrated Change Control (PICC)

Question 20

In questions about Net Present Value which answer should be chosen?

Answer 20

Select the project with the HIGHEST NPV

Question 21

For questions about Present Value which answer should always be chosen?

Answer 21

Select the project with the HIGHEST Present Value.

Question 22

In questions on Internal Rate of Return (IRR) which answer should be chosen?

Answer 22

Select the project with the HIGHEST IRR (and therefore the highest expected rate of return).

Question 23

In questions about Payback Period what answer should be selected?

Answer 23

Select the project with the SHORTEST payback period.

Question 24

What estimating technique involves using a statistical relationship between historical data and other variables in Unit Value form to calculate cost estimates. Since in prior similar projects it took $100 to develop each web page, we estimate that 4,000 will cost us $400K?

Answer 24

Parametric Estimating

Question 25

________ _______ _______ involves asking vendors to submit bids for the project, or certain portions of it. We plan to buy 20 computers to work on the web pages, so the bids received from the vendors help us to develop a more realistic cost estimate for the project?

Answer 25

Vendor Bid Analysis