Question 1

1 out of 1 points

The cost management plan is part of the overall project management

plan.
Answer

Selected Answer:

True

Correct Answer:

True

Question 2
1 out of 1 points

Learning curve theory does not apply to the amount of time it takes to
complete some tasks.
Answer

Selected Answer:

False

Correct Answer:

False

Question 3
0 out of 1 points

The people who develop software cost estimates often have a great
deal of experience with cost estimation.
Answer

Selected Answer:

True

Correct Answer:

False

Question 4
1 out of 1 points

A large percentage of total project costs are often labor costs.

Answer

Selected Answer:

True

Correct Answer:

True

Question 5
1 out of 1 points

Preparing cost estimates is a job for accountants.

Answer

Selected Answer:

False

Correct Answer:

False

Question 6
1 out of 1 points

Although information technology projects have a poor track record in

meeting project goals, they have a good track record in meeting
budget goals.
Answer

Selected Answer:

False

Correct Answer:

False

Question 7
1 out of 1 points

Project managers must conduct cash flow analysis to determine net

present value.
Answer

Selected Answer:

True

Correct Answer:

True

Question 8
1 out of 1 points

Any new technology or business process is untested and has inherent

risks.
Answer

Selected Answer:

True

Correct Answer:

True

Question 9
1 out of 1 points

Estimates are usually done at various stages of a project and should

become more accurate as time progresses.
Answer

Selected Answer:

True

Correct Answer:

True

Question 10
0 out of 1 points

Organizations have a history of spending too much money in the early

phases of information technology projects.
Answer

Selected Answer:

True

Correct Answer:

False

Question 11
1 out of 1 points

Many projects that are started never finish because of cost

management problems.
Answer

Selected Answer:

True

Correct Answer:

True

Question 12
1 out of 1 points

When deciding what projects to invest in or continue, you should

include sunk costs.
Answer

Selected Answer:

False

Correct Answer:

False

Question 13
0 out of 1 points

When developing an estimate for a large software project, estimates

cannot be made before clear system requirements have been
produced.
Answer

Selected Answer:

True

Correct Answer:

False

Question 14
1 out of 1 points

A definitive estimate should be the least accurate of the three types of

estimates.
Answer

Selected Answer:

False

Correct Answer:

False

Question 15
1 out of 1 points

When justifying investments in new information systems and

technology, the focus should only be on revenues or expenses.
Answer

Selected Answer:

False

Correct Answer:

False

Question 16
1 out of 1 points

ROM estimates can be referred to as a ballpark estimate, a

guesstimate, a swag, or a broad gauge.
Answer

Selected Answer:

True

Correct Answer:

True

Question 17
1 out of 1 points

If a project manager gets sick for two weeks or an important supplier

goes out of business, management reserve could be set aside to cover

the resulting costs.

Answer

Selected Answer:

True

Correct Answer:

True

Question 18
0 out of 1 points

Every cost estimate is unique.

Answer

Selected Answer:

False

Correct Answer:

True

Question 19
1 out of 1 points

Direct costs cannot be directly attributed to a certain project.

Answer

Selected Answer:

False

Correct Answer:

False

Question 20
0 out of 1 points

Parametric models are least reliable when historical information was

used to create the model.
Answer

Selected Answer:

True

Correct Answer:

False

Question 1
0 out of 1 points

Many projects, particularly information technology projects, do not

have good planning information, so tracking performance against a
plan might produce misleading information.
Answer

Selected Answer:

False

Correct Answer:

True

Question 2
1 out of 1 points

____, with assistance from financial experts in their organizations,

should create estimates of the costs and benefits of the project for its
entire life cycle.
Answer
Selected Answer:

Project managers

Correct Answer:

Project managers

Question 3
0 out of 1 points

In an earned value chart, when the actual cost line is right on or

above the earned value line, costs are less than or equal to planned.
Answer

Selected Answer:

True

Correct Answer:

False

Question 4
0 out of 1 points

Three separate surveys of software project cost overruns found that

the average cost overrun for all of the projects in their survey samples
(not just unsuccessful projects) were ____ percent.
Answer
Selected Answer:

2324
Correct Answer:

3334

Question 5
1 out of 1 points

____ is a method for determining the estimated annual costs and

benefits for a project and the resulting annual cash flow.
Answer
Selected Answer:

Cash flow analysis

Correct Answer:

Cash flow analysis

Question 6
0 out of 1 points

If cost variance is a positive number, it means that performing the

work cost more than planned.
Answer

Selected Answer:

True

Correct Answer:

False

Question 7
0 out of 1 points

____ helps you develop an accurate projection of a projects financial

costs and benefits.
Answer
Selected Answer:

Profit margin costing

Correct Answer:

Life cycle costing

Question 8
0 out of 1 points

Databases are a common tool for cost estimating, cost budgeting, and
cost control.
Answer

Selected Answer:

True

Correct Answer:

False

Question 9
1 out of 1 points

There does not need to be a change control system to define

procedures for changing the cost baseline.
Answer

Selected Answer:

False

Correct Answer:

False

Question 10
1 out of 1 points

____ involves developing an approximation or estimate of the costs of

the resources needed to complete a project.
Answer
Selected Answer:

Estimating costs
Correct Answer:

Estimating costs

Question 11
1 out of 1 points

____ involves allocating the overall cost estimate to individual work

items to establish a baseline for measuring performance.
Answer
Selected Answer:

Determining the budget

Correct Answer:

Determining the budget

Question 12
1 out of 1 points

If the cost performance index is less than one or less than 100
percent, the project is under budget.
Answer

Selected Answer:

False

Correct Answer:

False

Question 13
1 out of 1 points

The formulas for variances and indexes start with EV, the earned
value.
Answer

Selected Answer:

True

Correct Answer:

True

Question 14
1 out of 1 points

____ is the ratio of revenues to profits.

Answer
Selected Answer:

Profit margin
Correct Answer:

Profit margin

Question 15
0 out of 1 points

Since organizations depend on reliable information technology, there

are also huge costs associated with ____.
Answer
Selected Answer:

uptime
Correct Answer:

downtime

Question 16
1 out of 1 points

Most organizations have a well-established process for preparing

budgets.
Answer
Selected Answer:

True

Correct Answer:

True

Question 17
0 out of 1 points

____ includes the processes required to ensure that a project team

completes a project within an approved budget.
Answer
Selected Answer:

Cost control
Correct Answer:

Project cost management

Question 18
0 out of 1 points

The Standish Groups CHAOS studies reported an average cost

overrun for unsuccessful IT projects ranged from 180 percent in 1994
to ____ percent in 2004.
Answer
Selected Answer:

28
Correct Answer:

56

Question 19
0 out of 1 points

Cost budgeting provides information for project funding requirements.

Answer

Selected Answer:

False

Correct Answer:

True

Question 20
0 out of 1 points

The WBS is not a required input when developing a cost estimate.

Answer

Selected Answer:

True

Correct Answer:

False

Question 1
0 out of 1 points

A ____ is used for making many purchasing decisions for which

accurate estimates are required and for estimating final project costs.
Answer
Selected Answer:

budgetary estimate

Correct Answer:

definitive estimate

Question 2
0 out of 1 points

A ____ provides an estimate of what a project will cost.

Answer
Selected Answer:

final estimate
Correct Answer:

rough order of magnitude estimate

Question 3
0 out of 1 points

If the cost estimate will be the basis for contract awards and
performance reporting, it should be a ____ and as accurate as
possible.
Answer
Selected Answer:

rough order of magnitude estimate

Correct Answer:

definitive estimate

Question 4
1 out of 1 points

____ use the actual cost of a previous, similar project as the basis for
estimating the cost of the current project.
Answer
Selected Answer:

Analogous estimates
Correct Answer:

Analogous estimates

Question 5
1 out of 1 points

A ____ is used to allocate money into an organizations budget.

Answer
Selected Answer:

budgetary estimate
Correct Answer:

budgetary estimate

Question 6

1 out of 1 points

____ involve estimating individual work items or activities and

summing them to get a project total.
Answer
Selected Answer:

Bottom-up estimates
Correct Answer:

Bottom-up estimates

Question 7
0 out of 1 points

____ is a project performance measurement technique that integrates

scope, time, and cost data.
Answer
Selected Answer:

Parametric modeling
Correct Answer:

Earned value management

Question 8
1 out of 1 points

A(n) ____ might provide an estimate of $50 per line of code for a
software development project based on the programming language
the project is using, the level of expertise of the programmers, the
size and complexity of the data involved, and so on.
Answer
Selected Answer:

parametric model
Correct Answer:

parametric model

Question 9
1 out of 1 points

____ are those costs that an organization can easily measure in

dollars.
Answer
Selected Answer:

Tangible costs
Correct Answer:

Tangible costs

Question 10
1 out of 1 points

____ allow for future situations that may be partially planned for.
Answer
Selected Answer:

Contingency reserves
Correct Answer:

Contingency reserves

Question 11
0 out of 1 points

____ should be forgotten.

Answer
Selected Answer:

Intangible costs
Correct Answer:

Sunk costs

Question 12
1 out of 1 points

Project managers should focus on ____, since they can control them.
Answer
Selected Answer:

direct costs
Correct Answer:

direct costs

Question 13
1 out of 1 points

A ____ is a time-phased budget that project managers use to measure

and monitor cost performance.
Answer
Selected Answer:

cost baseline
Correct Answer:

cost baseline

Question 14
0 out of 1 points

The main goal of the ____ process is to produce a cost baseline for
measuring project performance and project funding requirements.
Answer
Selected Answer:

cost control
Correct Answer:

cost budgeting

Question 15
0 out of 1 points

The project management plan, project funding requirements, work

performance data, and organizational process assets are inputs for
the process of ____.
Answer
Selected Answer:

estimating costs
Correct Answer:

controlling costs

Question 16
0 out of 1 points

____ allow for future situations that are unpredictable.

Answer
Selected Answer:

Contingency reserves
Correct Answer:

Management reserves

Question 17
1 out of 1 points

____ are costs that are not directly related to the products or services
of the project, but are indirectly related to performing the project.
Answer
Selected Answer:

Indirect costs
Correct Answer:

Indirect costs

Question 18
0 out of 1 points

Tom DeMarco, a well-known author on software development,

suggests ____ reasons for the inaccuracies of many information
technology project cost estimates and some ways to overcome them.
Answer
Selected Answer:

three

Correct Answer:

four

Question 19
0 out of 1 points

A ____ is done very early in a project or even before a project is

officially started.
Answer
Selected Answer:

budgetary estimate
Correct Answer:

rough order of magnitude estimate

Question 20
0 out of 1 points

The ____ is that portion of the approved total cost estimate planned to
be spent on an activity during a given period.
Answer
Selected Answer:

AC
Correct Answer:

PV

Question 1
1 out of 1 points

The ____ is the ratio of actual work completed to the percentage of

work planned to have been completed at any given time during the
life of the project or activity.
Answer
Selected Answer:

RP
Correct Answer:

RP

Question 2
0 out of 1 points

Using simplified percentage complete amounts for a one-year project

with weekly reporting and an average task or work packet size of one
week, you can expect about a(n) ____ percent error rate.
Answer
Selected Answer:

11

Correct Answer:

Question 3
1 out of 1 points

The ____ is the ratio of earned value to actual cost and can be used to
estimate the projected cost of completing the project.
Answer
Selected Answer:

CPI
Correct Answer:

CPI

Question 4
1 out of 1 points

The ____ is an estimate of what it will cost to complete the project

based on performance to date.
Answer
Selected Answer:

EAC
Correct Answer:

EAC

Question 5
1 out of 1 points

____ is the earned value minus the planned value.

Answer
Selected Answer:

SV
Correct Answer:

SV

Question 6
0 out of 1 points

Variances are calculated by subtracting the actual cost or planned

value from ____.
Answer
Selected Answer:

RP
Correct Answer:

EV

Question 7

0 out of 1 points

The ____ is an estimate of the value of the physical work actually

completed.
Answer
Selected Answer:

PV
Correct Answer:

EV

Question 8
0 out of 1 points

The ____ is the ratio of earned value to planned value and can be used
to estimate the projected time to complete the project.
Answer
Selected Answer:

CV
Correct Answer:

SPI

Question 9
0 out of 1 points

____ is the earned value minus the actual cost.

Answer
Selected Answer:

SV
Correct Answer:

CV

Question 10
0 out of 1 points

The ____ is the total direct and indirect costs incurred in accomplishing
work on an activity during a given period.
Answer
Selected Answer:

RP
Correct Answer:

AC