Module 2 Cost Estimating Techniques Flashcards
Question 1: Which of the following estimating techniques relies heavily on the subjective opinion of an individual?
A. Parametric
B. Extrapolation from Actuals
C. Expert Opinion
D. Analogy
E. Build-Up
F. None of the Above
G. All of the Above
C. Expert Opinion
Question 2: In estimating the cost of a “follow-on” contract for a program that has been in existence for an extended period of time for which the actual costs incurred to date on the specific program are readily available, what would be the preferred estimating methodology?
A. Expert Opinion
B. Extrapolation from Actuals
C. Analogy
D. Parametric
E. Build-Up
F. All of the Above
G. None of the Above
B. Extrapolation of Actuals
Question 3: Which of the following estimating techniques is based upon knowledge of the cost of a similar item and uses adjustment factors for the complexity, technical, or physical differences between the items?
A. Analogy
B. Expert Opinion
C. Extrapolation from Actuals
D. Parametric
E. Build-Up
F. All of the Above
G. None of the Above
A. Analogy
Question 4: Top-level technical data, such as the mass properties of an item, would most likely be used to support which estimating technique?
A. Build-Up
B. Parametric
C. Extrapolation From Actuals
D. Analogy
E. Expert Opinion
F. All of the Above
G. None of the Above
B. Parametric
Question 5: A quantitative methodology for estimating the touch labor of manufacturing a product using labor standards is most likely to be part of the application of which of the following costing techniques?
A. Expert Opinion
B. Extrapolation From Actuals
C. Build-Up
D. Analogy
E. Parametric
F. All of the Above
G. None of the Above
C. Build-Up
Question 6: True or False. A cost analyst that has the labor standards for manufacturing a landing gear bracket for the B-2 Bomber has enough information to determine the total cost of the landing gear bracket.
T/F
False
Question 7: When using a weight-based parametric estimating technique, it is necessary to know the material type being used (e.g., steel or composites).
T/F
True
Question 8: Which of the following is a major shortcoming of using expert opinion as an estimating methodology?
A. It relies heavily on performance data
B. It takes a purely quantitative approach to estimating
C. Actual cost data is readily available
D. The opinion of an individual is not refutable
E. The estimate is always understated
F. It is likely that other experts exist with differing opinions
G. None of the Above
F. It is likely that other experts exist with differing opinions
Question 9: A relationship between power (in kilowatts) and cost (in thousands of dollars) is an example of which methodology?
A. Extrapolation from Actuals
B. Expert Opinion
C. Analogy
D. Build-Up
E. SWAG Estimating
F. Atmospheric Extraction
G. Parametric
G. Parametric
Question 10: Which methodology would be best to use when estimating the cost of the 20th lot of F/A - 18 C/D containing units 950 through 980 when complete historical costs are available for units 1 through 949?
A. Extrapolation From Actuals
B. Parametric
C. SWAG Estimating
D. Atmospheric Extraction
E. Analogy
F. Expert Opinion
G. Industrial Engineering
A. Extrapolation From Actuals
Question 11: When developing a cost estimate, you should always use the same costing technique for every element.
T/F
False
Question 12: You must develop a cost estimate for the structure subsystem of a new communications satellite, COM2. The new satellite is similar to COM1, a communications satellite your company recently built. Through discussion with the structural engineers, you collected the data to the right. What should the estimated cost of the structure subsytem be?
A. $4 M
B. $5 M
C. $6.25 M
D. $10 M
E. None of the Above
COM1 COM2 Material Aluminum Aluminum Weight 200 kg 250 kg Cost $5 M ?
C. $6.25 M
Question 13: If a parametric Cost Estimating Relationship (CER) is given by the equation y = a + bx, which of the following statements is true? I. x is the independent variable. II. y usually represents cost. III. When x increases by 1, y increases by a.
A. I only
B. II only
C. III only
D. I and II only
E. I and III only
F. II and III only
G. I, II, and III
D. I and II only
Question 14: The standard for an item is 800 touch labor hours, and the documented variance factor is 18%. The corresponding indirect labor factor is 60%. What are the estimated touch labor hours for this item?
A. 800
B. 944
C. 1280
D. 1510.4
B. 944
Question 15: Which of the following pairs are the correct terms for the two main ways to structure a cost estimate?
A. Tops Down / Bottoms Up
B. Top Down/ Bottoms Up
C. Tops Down / Bottom Up
D. Top Down / Bottom Up
D. Top Down / Bottom Up
Question 16: True or False. A Cross-Check should result in exactly the same estimate as the original estimate.
T/F
False
Question 17: Which of the following estimating techniques is an objective method of estimating?
A. Engineering Judgment
B. Delphi Technique
C. Round Table
D. Expert Opinion
E. None of the Above
F. All of the Above
E. None of the Above
Question 18: Which of the following are risks associated with Parametric Estimating?
A. Imprecision of the intercept and slope of the regression line.
B. New technologies are not included in the historical data set.
C. Cost drivers change over time.
D. A and B only
E. B and C only
F. All of the above
G. None of the above
E. B and C only
Question 19: Which of these general statements is true? I. Analogies, Engineering Build-Ups and Parametric Estimates are all used equally throughout a program life cycle II. Analogies and Parametric Estimates are more prevalent towards the end of a program life cycle, and Engineering Build-Ups are more prevalent earlier in the life cycle. III. Analogies and Parametric Estimates are more prevalent towards the beginning of a program life cycle, and Engineering Build-Ups are more prevalent later in the life cycle.
A. I
B. II
C. III
C. III
Question 20: True or False. All cost estimating methodologies have some weakness.
T/F
True
