Review 7,8,12 Textbook Quizes

Question 1

Accountants usually define _ as a resource sacrificed or foregone to achieve a specific objective

Answer 1

Cost

Question 2

What is the main goal of project cost management?

Answer 2

To complete a project within an approved budget

Question 3

What is an output of estimating costs?

Answer 3

Cost estimates, basis of estimates, project documents updates

Question 4

If a company loses $5 for every $100 in revenue, what is the profit margin

Answer 4

-5%

Question 5

_ reserves allow for future situations that are unpredictable

Answer 5

Management

Question 6

You are preparing a cost estimate for a building based on its location, purpose, number of square feet, and other characteristics. What cost-estimating technique are you using?

Answer 6

Parametric

Question 7

_ involves allocating the project cost estimate to individual material resources or work items over time

Answer 7

Project cost budgeting

Question 8

_ is a project performance measurement technique that integrates scope, time, and cost data

Answer 8

Earned value management

Question 9

If the actual cost for a WBS item is $1500 and its earned value is $2000, what is its cost variance, and is it under/over budget?

Answer 9

The cost variance is $500, which is under budget

Question 10

If a project is halfway completed, its schedule performance index is 110%, and its cost performance index is 95%, how is it progressing?

Answer 10

It is ahead of schedule and over budget

Question 11

_ is the degree to which a set of inherent characteristics fulfills requirements

Answer 11

Quality

Question 12

What is the purpose of project quality management?

Answer 12

To ensure that the project will satisfy the needs for which it was undertaken

Question 13

_ generates ideas for quality improvements by comparing specific project practices or product characteristics to those of other projects or products within or outside the performing organization

Answer 13

Benchmarking

Question 14

What does the term kaizen mean?

Answer 14

Improvement

Question 15

What tool can you use to determine whether a process is in control or out of control?

Answer 15

A control chart

Question 16

Six Sigma’s target for perfection is the achievement of no more than _ defects, errors, or mistakes per million opportunities

Answer 16

3.4

Question 17

The seven run rule states that if seven data points in a row on a control chart are all below the mean, above the mean, or all increasing or decreasing, then the process needs to be examined for _ problems

Answer 17

Nonrandom

Question 18

What is the preferred order for performing testing on IT projects?

Answer 18

Unit, integration, system, user acceptance

Question 19

_ is known for his work on quality control in Japan, and he developed the 14 points for Management in his text Out of the Crisis

Answer 19

Deming

Question 20

PMI’s OPM3® is an example of a _ model or framework for helping organizations improve their process and systems

Answer 20

Maturity

Question 21

What is the largest spending category for global outsourcing of IT services?

Answer 21

Devices

Question 22

Your organization hired a specialist in a certain field to provide training for a short period of time. Which reason for outsourcing would this example fall under?

Answer 22

Accessing skills and technologies

Question 23

In which project procurement management process is an RFP often written?

Answer 23

Planning procurement management

Question 24

An item you need for a project has a daily lease cost of $200. If you decide to purchase the item, the investment cost is $6000 and the daily cost is $100. After how many days will the lease cost be the same as the purchase cost?

Answer 24

60

Question 25

Which type of contract has the least amount of risk for the buyer?

Answer 25

Fixed-price

Question 26

The _ is the point at which the contractor assumes total responsibility for each additional dollar of contract cost

Answer 26

Point of total assumption

Question 27

If your college or university wanted to get information from potential sellers for providing a new sports stadium, what type of document would be required of the potential sellers?

Answer 27

Proposal

Question 28

Buyers often prepare a _ list when selecting a seller to make the process more manageable

Answer 28

Short

Question 29

A proposal evaluation sheet is an example of a(n) _

Answer 29

Weighted scoring model

Question 30

_ is a term used to describe various procurement functions that are now done electronically

Answer 30

E-procurement