Life-cycle costing is the total cost to the customer for acquisition and ownership of a system over its full life. Life-cycle costing categories include the cost of _____________________

Select one:

R&D, maintenance, operation, and support

R&D, production, operation, and retirement/phase out

Acquisition, operations, and maintenance

Production, operations, and maintenance

None of the above

Question 2 Not yet answered Points out of 5.00 Not flaggedFlag question Question text The work breakdown structure, the work packages, and the company's accounting system are tied together through the:

Select one:

Code of accounts

Overhead rates

Budgeting system

Capital budgeting process

All of the above

Question 3 Not yet answered Points out of 5.00 Not flaggedFlag question Question text The three most common types of project cost estimates are:

Select one:

Order of magnitude, parametric, and budget

Parametric, definitive, and top down

Order of magnitude, definitive, and bottom up

Order of magnitude, budget, and definitive

Analogy, parametric and top down

Question 4 Not yet answered Points out of 5.00 Not flaggedFlag question Question text Order of Magnitude Estimates use the _______________ method and are a ____________ approach.

Select one:

Definitive, bottom up

Analogy, top down

Parametric, bottom up

Parametric, top down

Analogy, bottom up

Question 5 Not yet answered Points out of 5.00 Not flaggedFlag question Question text A budget log should include:

Select one:

Distributed budget

Management reserve

Undistributed budget

Contract changes

All of the above.

Question 6 Not yet answered Points out of 5.00 Not flaggedFlag question Question text The most precise or accurate estimate for determining project costs is the ____________ estimate.

Select one:

Definitive

Analogy

Budget

Modified standards

Rule of thumb

Question 7 Not yet answered Points out of 5.00 Not flaggedFlag question Question text A _____________ estimate (done by analogy) should be accurate within (-10% to +25%).

Select one:

Parametric

Definitive

Budget

Bottom up

Engineering

Question 8 Not yet answered Points out of 5.00 Not flaggedFlag question Question text The planned cost for the total project at the project's start is called the _________________

Select one:

Cost of goods sold

ROM estimate

Budgeted cost

All of the above

2 and 3 only

Question 9 Not yet answered Points out of 5.00 Not flaggedFlag question Question text Labor estimating is normally recorded in both hours and dollars. An element in the work breakdown structure was estimated to require one month for accomplishment. The element was estimated at 1,000 hours of labor and at a burdened cost of $60,000. The task was completed in 1,000 hours but at a burdened cost of $500,000. With no further information available, the likely reason for the cost increase could be:

Select one:

Higher salaried employees were assigned

Overtime was required

The overhead rate increased

Employee salaries had increased

Any or all of the above

Question 10 Not yet answered Points out of 5.00 Not flaggedFlag question Question text Typically, during which phase in a project life cycle are most of the project expenses incurred?

Select one:

Concept phase

Development or design phase

Execution phase

Termination phase

None of the above

Question 11 Not yet answered Points out of 5.00 Not flaggedFlag question Question text The most common method for pricing out nonburdened labor hours for a three-year project would be to:

Select one:

Price out the hours at the actual salary of the people to be assigned

Price out the work using a company-wide average labor rate

Price out the work using a functional group average labor rate

All of the above

1 and 2 only

Question 12 Not yet answered Points out of 5.00 Not flaggedFlag question Question text In project-driven companies, costs are usually billed against the project based upon:

Select one:

The burdened labor rate of the actual employees who performed the work

The burdened labor rate of the line organization average salary

The burdened labor rate of the company average salary

The burdened labor rate of the average salary of the project team members

None of the above.

Question 13 Not yet answered Points out of 5.00 Not flaggedFlag question Question text The reason that cost management is so difficult in project management is that:

Select one:

Projects by definition and nature are nonrecurring events and are therefore difficult to predict

There are no tools for identifying project tasks

Project managers do not care about tracking costs, as only schedules are important to all project managers

1 and 2 only

2 and 3 only

Question 14 Not yet answered Points out of 5.00 Not flaggedFlag question Question text The "rolling wave" or "moving window" concept is used most frequently on projects where:

Select one:

The baseline is frozen for the duration of the project and no scope changes are permitted

Marketing is unsure of what the customer actually wants and reserves the right to make major scope changes

The low levels of the work breakdown structure are known with certainty for the next three to six months, but the remaining tasks are based upon the results of the first three to six months of work

Networking tehniques are not appropriate

All of the above

Question 15 Not yet answered Points out of 5.00 Not flaggedFlag question Question text In which of the following cost estimating techniques are statistical models used?

Select one:

Nonparametric cost estimating

Parametric cost estimating

Life-cycle cost estimating

Bottom-up cost estimating

All of the above

Question 16 Not yet answered Points out of 5.00 Not flaggedFlag question Question text There are two types of reserves used on projects. A Contingency Fund is for (usually major) scope changes that were not considered part of the original plan, whereas the _____________ is to compensate for minor scope changes, inaccuracies in estimating, and possibly escalation factors.

Select one:

Unplanned allowance fund

Undistributed budget

Management reserve

Budgetary reserve

Planned reserve

Question 17 Not yet answered Points out of 5.00 Not flaggedFlag question Question text Situation 1:

WBS Element

BCWS (PV)

BCWP (EV)

ACWP (AC)

P

$1,000

$1,100

$1,150

Q

$2,000

$1,800

$2,100

R

$1,000

$1,200

$1,050

S

$2,000

$1,900

$1,800

Using Situation 1 above, which WBS element is behind schedule but under budget?

Select one:

Element P

Element Q

Element R

Element S

None of the above

Question 18 Not yet answered Points out of 5.00 Not flaggedFlag question Question text Using Situation 1 above, which WBS element has a favorable cost variance of $150?

Select one:

Element P

Element Q

Element R

Element S

Question 19 Not yet answered Points out of 5.00 Not flaggedFlag question Question text Using Situation 1 above, the cost performance index (CPI) for WBS element R is:

Select one:

0.875

1.14

0.952

0.833

1.20

Question 20 Not yet answered Points out of 5.00 Not flaggedFlag question Question text The least precise of all capital budgeting methods is _________________.

Select one:

NPV

Payback

IRR

LCC

EVM