ENG 2001 Quiz 3

Question 1

What are the impacts of higher project costs?
4 points

Answer 1

Change to project’s business case justification, potentially cancelling project
Deferral of other projects due to reduced availability of funds
Insufficient funds
Reduction of company profit

Question 2

General estimate
included where

Answer 2

Represents funds available included in the project charter

Question 3

Detailed cost estimate
Carried out where

Answer 3

Based on deliverables to be produced
In planning phase

Question 4

Direct cost

Answer 4

Related to activities of the project
For ex. Work performed, labour, salary costs

Question 5

Indirect costs

Answer 5

Cost of company’s facilities, rent, benefits, office supplies used

Question 6

Analogous estimating

Answer 6

Develop estimates based on cost incurred during similar project
Easy and can be done early
Other project info may not be available

Question 7

Bottom-up estimating

Answer 7

Assess characteristics of each work package, and estimating cost related to each
Relatively accurate
Requires detailed scope and schedule info

Question 8

Parametric estimating

Answer 8

Standard rates that are available for certain types of project activities as a basis for est

Question 9

Benefits of detailed budget

Answer 9

Effective monitoring of project
Required cashflow is identified