Module 1 Cost Estimating Basics Flashcards
Question 1: Which of the following are the three major types of cost estimates?
A. Analysis of Alternatives, Budget Estimate, Independent Cost Estimate
B. Budget Estimate, Life Cycle Cost Estimate, Independent Cost Estimate
C. Independent Cost Estimate, Life Cycle Cost Estimate, Rough-Order-of-Magnitude
D. Budget Estimate, Independent Cost Estimate, Economic Evaluation
B. Budget Estimate, Life Cycle Cost Estimate, Independent Cost Estimate
Question 2: True or False. A Cost Analysis Requirements Description (CARD) ensures that cost projections are based on a common definition of the system and the acquisition program.
T/F
True
Question 3: A Work Breakdown Structure…
A. Provides a financial reporting framework
B. Relates the work scope elements to each other and to the end product(s)
C. Evolves as system/program evolves
D. All of the above
D. All of the above
Question 4: True or False. Data collection should always begin after determining the estimating methodology.
T/F
False
Question 5: Cost estimating and analysis at its best is an interdisciplinary mix which includes which of the following?
A. Economics, Sociology, and Mathematics
B. Statistics, Accounting, and Political Science
C. Probability, Marketing, and History
D. Engineering, Operations Research, and Statistics
D. Engineering, Operations Research, and Statistics
Question 6: True or False. A Budget Estimate is also known as a Total Ownership Cost (TOC) estimate.
T/F
False TOC estimate is synonymous to LCCE
Question 7: True or False. Training and logistics plans should always be described in the Program/System Baseline documentation.
T/F
True
Question 8: The cost estimating process includes which of the following?
A. Data Collection and Analysis
B. Accounting and Financial Management
C. Results and Report Generation
D. Model Development and Validation
E. All of the above
F. A, B, and D only
G. A, C, and D only
G. A, C, and D only
Question 9: True or False. Cost estimating can be applied with cookbook precision.
T/F
False
Question 10: High quality cost estimates have which of the following characteristics?
A. Traceability
B. Credibility
C. Replicability and Auditability
D. Accuracy
E. Comprehensiveness
F. All of the above
G. None of the above
F. All of the above
Question 11: True or False. Cost analysis is required whenever resources are allocated.
T/F
True
Question 12: A Life Cycle Cost Estimate (LCCE)…
A. Is often confused with an operations and support estimate
B. Compares the costs and benefits associated with each alternative course of action
C. Is a “cradle to grave” estimate
D. A and C only
E. B and C only
F. A and B only
G. None of the above
D. A and C only
Question 13: True or False. A well-documented estimate withstands intense scrutiny and increases the credibility of the estimate.
T/F
True
Question 14: True or False. Scatter plots provide the analyst with a good idea of the relationships and trends present in the data.
T/F
True
Question 15: Which of the following is not a benefit of cost estimating and analysis?
A. Can help choose between design alternatives
B. Can capture cost impacts of new technology or processes
C. Can transform a poor data set into a high quality estimate
D. Can establish and defend budgets
E. Can quantify impacts of program risks
C. Can transform a poor data set into a high quality estimate
Question 16: Which of the following are cost estimating techniques or methodologies?
A. Engineering build-up
B. Analogy
C. Extrapolation from actuals
D. Expert opinion
E. Parametric
F. All of the above
G. None of the above
F. All of the above
Question 17: True or False. Cross-checking an estimate with historical data for similar programs or other estimating methodologies or models does not assist in validating the estimate.
T/F
False
Question 18: Which of the following would not be negatively impacted by an overly short turn-around time requirement for an estimate?
A. Ability to obtain needed data
B. Ability to coordinate with other organizations
C. Ability to perform regression analysis
D. Quality and detail of the estimate
C. Ability to perform regression analysis
Question 19: True or False. Cost estimates can be used to evaluate proposals for cost reasonableness.
T/F
True
Question 20: What is the biggest concern that would prompt an agency to do an ICE?
A. What is the cost and requirement impact of different solutions?
B. Is the project affordable?
C. Is the estimate the same when unbiased?
D. Is money available when needed?
E. What solutions would meet mission requirements?
C. Is the estimate the same when unbiased?
