Overrun is the additional percentage amount by which estimates exceed actual expenses.a. True

b. Fals e

ANSWER: False

RATIONALE: Feedback: Overrun is the extra percentage or dollar amount whereby actual costs exceed estimates.

You are watching: Overrun is the additional percentage amount by which estimates exceed actual costs.

POINTS: 1

DIFFICULTY: Difficulty: Easy

REFERENCES: p.

QUESTION TYPE: True / False

HAS VARIABLES: False

LEARNING OBJECTIVES:

INFO.SCHW.14.48 - LO: 7-

NATIONAL STAND

ARDS:

USA - BUSPROG: Analytic

TOPICS: The Importance of Project Cost Management

KEYWORDS: Bloom"s: Knowledge

The major output of the planning cost monitoring process is a readjust request.a. True

b. Fals e

ANSWER: False

RATIONALE: Feedback: The major output of the planning cost management procedure procedure is a expense monitoring arrangement. Planning price monitoring entails determining the policies, actions, and documentation that will be used for planning, executing, and controlling task price.

POINTS: 1

DIFFICULTY: Difficulty: Easy

REFERENCES:

p.

QUESTION TY

PE:

True / False

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.48 - LO: 7-

NATIONAL ST

ANDARDS:

USA - BUSPROG: Analytic

TOPICS: The Importance of Project Cost Management

KEYWORDS: Bloom"s: Knowledge

IT project managers have to have the ability to present and talk about job information both in financial and also technological terms.a. True

b. Fals e

ANSWER: True

RATIONALE: Feedback: Many members of a company’s executive board have a far better knowledge of financial terms than IT terms, and are more interested in finance. Thus, IT job supervisors have to be able to current and comment on project information both in financial terms and technological terms.

POINTS: 1

DIFFICULTY: Difficulty: Easy

REFERENCES:

p.289-

QUESTION TY

PE:

True / False

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.49 - LO: 7-

NATIONAL ST

ANDARDS:

United States - BUSPROG: - Comprehension

TOPICS: Basic Principles of Cost Management

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

b. Fals e

ANSWER: True

RATIONALE: Feedback: Cash circulation evaluation is a technique of determining the approximated yearly costs and benefits for a job and the resulting yearly cash flow. Project managers must conduct cash circulation evaluation to recognize net current value.

POINTS: 1

DIFFICULTY: Difficulty: Easy

REFERENCES:

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QUESTION TY

PE:

True / False

DIFFICULTY: Difficulty: Moderate

REFERENCES:

p.

QUESTION TY

PE:

True / False

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.49 - LO: 7-

NATIONAL ST

ANDARDS:

USA - BUSPROG: Analytic

TOPICS: Basic Principles of Cost Management

KEYWORDS: Bloom"s: Comprehension

DATE CREATED:

It is crucial for job supervisors to focus on instraight costs because they can be quickly regulated.a. True

b. Fals e

ANSWER: False

RATIONALE: Feedback: Direct expenses can be directly concerned producing the assets and solutions of the project. Project managers must emphasis on straight expenses because they deserve to be controlled.

POINTS: 1

DIFFICULTY: Difficulty: Moderate

REFERENCES:

p.

QUESTION TY

PE:

True / False

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.49 - LO: 7-

NATIONAL ST

ANDARDS:

USA - BUSPROG: Analytic

TOPICS: Basic Principles of Cost Management

KEYWORDS: Bloom"s: Comprehension

DATE CREATED:

b. Fals e

ANSWER: True

RATIONALE: Feedback: Management reserves enable for future situations that are unpredictable. For instance, if a job manager gets sick for two weeks or a critical supplier goes out of business, monitoring reserves can be collection aside to cover the resulting costs.

POINTS: 1

DIFFICULTY: Difficulty: Moderate

REFERENCES:

p.

QUESTION TY

PE:

True / False

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.49 - LO: 7-

NATIONAL ST

ANDARDS:

USA - BUSPROG: Analytic

TOPICS: Basic Principles of Cost Management

KEYWORDS: Bloom"s: Comprehension

DATE CREATED:

Contingency reserves are additionally well-known as unknown unknowns.a. True

b. Fals e

ANSWER: False

RATIONALE: Feedback: Contingency reserves allow for future situations that might be partly planned for. They are occasionally dubbed recognized unknowns.

POINTS: 1

DIFFICULTY: Difficulty: Easy

REFERENCES: p.

QUESTION TYPE:

True / False

HAS VARIABLE

S:

False

LEARNING OB

JECTIVES:

INFO.SCHW.14.49 - LO: 7-

NATIONAL STA

NDARDS:

USA - BUSPROG: Analytic

TOPICS: Basic Principles of Cost Management

KEYWORDS: Bloom"s: Knowledge

JECTIVES:

NATIONAL STA

NDARDS:

United States - BUSPROG: Analytic

TOPICS: Estimating Costs

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

Budgetary estimates are made also prior to a project is officially began.a. True

b. False

ANSWER: True

RATIONALE: Feedback: Many establishments construct budgets at least two years right into the future. Budgetary estimates are made one to two years before task completion.

POINTS: 1

DIFFICULTY: Difficulty: Easy

REFERENCES:

p.

QUESTION TY

PE:

True / False

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.51 - LO: 7-

NATIONAL ST

ANDARDS:

USA - BUSPROG: Analytic

TOPICS: Estimating Costs

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

b. Fals e

ANSWER: True

RATIONALE: Feedback: Definitive estimates are made one year or less before task completion. They carry out a specific estimate of task prices.

POINTS: 1

DIFFICULTY: Difficulty: Easy

REFERENCES: p.295-

QUESTION TY

PE:

True / False

HAS VARIABLE

S:

False

LEARNING OB

JECTIVES:

INFO.SCHW.14.51 - LO: 7-

NATIONAL STA

NDARDS:

USA - BUSPROG: Analytic

TOPICS: Estimating Costs

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

Estimates need to become even more exact as time progresses.a. True

b. False

ANSWER: True

RATIONALE: Feedback: Price quotes are normally done at assorted stages of a project and need to end up being even more precise as time progresses.

POINTS: 1

DIFFICULTY: Difficulty: Easy

REFERENCES: p.

QUESTION TYPE:

True / False

HAS VARIABLES:

False

LEARNING OBJE

CTIVES:

INFO.SCHW.14.51 - LO: 7-

NATIONAL STAN

DARDS:

USA - BUSPROG: Analytic

TOPICS: Estimating Costs

KEYWORDS: Bloom"s: Knowledge

Supporting details for an estimate incorporate the ground rules and assumptions provided in producing the estimate.a. True

b. False

ANSWER: True

RATIONALE: Feedback: In addition to producing cost estimates for the entire task and also activity cost estimates, it is also important to carry out supporting details for the estimates

b. Fals e

ANSWER: False

RATIONALE: Feedback: Analogous approximates calls for a great deal of expert judgment and also is mostly less costly than other techniques. However, it is also less specific.

POINTS: 1

DIFFICULTY: Difficulty: Easy

REFERENCES:

p.

QUESTION TY

PE:

True / False

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.51 - LO: 7-

NATIONAL ST

ANDARDS:

USA - BUSPROG: Analytic

TOPICS: Estimating Costs

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

b. Fals e

ANSWER: True

RATIONALE: Feedback: The dimension of the individual work items and the suffer of the estimators drive the accuracy of the approximates. Using smaller sized job-related items boosts the accuracy of the expense estimate because the world assigned to do the job-related construct the expense estimate rather of someone unacquainted via the work-related.

POINTS: 1

DIFFICULTY: Difficulty: Easy

REFERENCES:

p.

QUESTION TY

PE:

True / False

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.51 - LO: 7-

NATIONAL ST

ANDARDS:

United States - BUSPROG: Analytic

TOPICS: Estimating Costs

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

Parametric models are reliable once the models are flexible in terms of the project’s size.a. True

b. False

ANSWER: True

RATIONALE: Feedback: Parametric models are a lot of reputable once the historical indevelopment offered to produce the version is accurate, the parameters are easily quantifiable, and also the version is flexible in regards to the project’s size.

POINTS: 1

DIFFICULTY: Difficulty: Moderate

REFERENCES:

p.

QUESTION TY

PE:

True / False

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.51 - LO: 7-

NATIONAL ST

ANDARDS:

United States - BUSPROG: Analytic

TOPICS: Estimating Costs

KEYWORDS: Bloom"s: Comprehension

DATE CREATED:

One of the factors why project cost estimates are inprecise is because people are biased towardunderestimation.a. True

b. False

ANSWER: True

RATIONALE: Feedback: One of the reasons why job cost estimates are exceptionally inexact is because human beings are biased towards underestimation. It is for this reason necessary for project supervisors and also optimal management to evaluation estimates and also ask important

individual product sources or work-related items over time. These material resourcesor work items are based upon the activities in the work-related breakdvery own structure for theproject.

POINTS: 1

DIFFICULTY: Difficulty: Easy

REFERENCES:

p.

QUESTION TY

PE:

True / False

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.52 - LO: 7-

NATIONAL ST

ANDARDS:

USA - BUSPROG: Analytic

TOPICS: Determining the Budget

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

The job management plan and project resources requirements are inputs of the process of managing costs.a. True

b. False

ANSWER: True

RATIONALE: Feedback: The job administration setup, project funding demands, work performance information, and business procedure assets are inputs for managing costs.

POINTS: 1

DIFFICULTY: Difficulty: Easy

REFERENCES:

p.306-

QUESTION TY

PE:

True / False

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.53 - LO: 7-

NATIONAL ST

ANDARDS:

USA - BUSPROG: Analytic

TOPICS: Controlling Costs

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

The formulas for variances and indexes start via EV, the earned worth.a. True

b. False

ANSWER: True

RATIONALE: Feedback: The formulas for variances and also indexes begin with EV, the earned value. Variances are calculated by subtracting the actual price or planned worth from EV, and indexes are calculated by splitting EV by the actual cost or planned value.

POINTS: 1

DIFFICULTY: Difficulty: Moderate

REFERENCES:

p.

QUESTION TY

PE:

True / False

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.53 - LO: 7-

NATIONAL ST

ANDARDS:

USA - BUSPROG: Analytic

TOPICS: Controlling Costs

KEYWORDS: Bloom"s: Comprehension

DATE CREATED:

b. Fals e

ANSWER: False

RATIONALE: Feedback: Cost variance (CV) is the earned worth minus the actual expense. If cost variance is an adverse number, it implies that performing the work costs even more than planned. If price variance is a positive number, percreating the occupational expenses less than planned.

POINTS: 1

DIFFICULTY: Difficulty: Moderate

REFERENCES:

p.

QUESTION TY

PE:

True / False

HAS VARIABL

ES:

False

DIFFICULTY: Difficulty: Moderate

REFERENCES:

p.

QUESTION TY

PE:

True / False

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.53 - LO: 7-

NATIONAL ST

ANDARDS:

USA - BUSPROG: Analytic

TOPICS: Controlling Costs

KEYWORDS: Bloom"s: Comprehension

DATE CREATED:

A schedule performance index of one means that the job is on schedule.a. True

b. False

ANSWER: True

RATIONALE: Feedback: The schedule performance index (SPI) is the ratio of earned value to planned value; it can be provided to estimate the projected time to complete the project. A schedule performance index of one suggests the task is on schedule.

POINTS: 1

DIFFICULTY: Difficulty: Moderate

REFERENCES:

p.

QUESTION TY

PE:

True / False

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.53 - LO: 7-

NATIONAL ST

ANDARDS:

United States - BUSPROG: Analytic

TOPICS: Controlling Costs

KEYWORDS: Bloom"s: Comprehension

DATE CREATED:

a. True

b. Fals e

ANSWER: False

RATIONALE: Feedback: Viewing earned worth information in chart form helps in visualizing exactly how a job is perdeveloping. If the actual expense line is constantly on or above the earned value line, it indicates that prices are equal to or more than planned.

POINTS: 1

DIFFICULTY: Difficulty: Moderate

REFERENCES:

p.

QUESTION TY

PE:

True / False

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.53 - LO: 7-

NATIONAL ST

ANDARDS:

USA - BUSPROG: Analytic

TOPICS: Controlling Costs

KEYWORDS: Bloom"s: Comprehension

DATE CREATED:

Spreadsheets are a common tool for expense estimating, price budgeting, and also cost control.a. True

b. False

ANSWER: True

RATIONALE: Feedback: Many organizations usage software to assist in miscellaneous tasks related to job price management. Spreadsheets are a widespread tool for cost estimating, price budgeting, and cost control.

POINTS: 1

DIFFICULTY: Difficulty: Easy

REFERENCES:

p.

QUESTION TY

PE:

True / False

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.54 - LO: 7-

NATIONAL ST

ANDARDS:

United States - BUSPROG: Analytic

TOPICS: Using Project Management Software to aid In Project Cost Management

DIFFICULTY: Difficulty: Easy

REFERENCES:

p.

QUESTION TY

PE:

Multiple Choice

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.48 - LO: 7-

NATIONAL ST

ANDARDS:

United States - BUSPROG: Analytic

TOPICS: The Importance of Project Cost Management

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

Which process entails allocating the all at once price estimate to individual work-related items to establish a baseline formeasuring performance?a. determining the budget b. finalizing plans for task costs

c. regulating expenses d. estimating costs

ANSWER: a

RATIONALE: Feedback: Determining the budget involves allocating the overall cost estimate to individual work-related items to develop a baseline for measuring performance.

POINTS: 1

DIFFICULTY: Difficulty: Easy

REFERENCES:

p.

QUESTION TY

PE:

Multiple Choice

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.48 - LO: 7-

NATIONAL ST

ANDARDS:

United States - BUSPROG: Analytic

TOPICS: The Importance of Project Cost Management

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

b. cost estimating

c. expense budgeting d. cost planning

ANSWER: c

RATIONALE: Feedback: Determining the budacquire requires allocating the as a whole cost estimate to individual occupational items to develop a baseline for measuring performance. The primary outputs of the price budgeting process are a cost baseline, job capital needs, and also job documents updates.

POINTS: 1

DIFFICULTY: Difficulty: Easy

REFERENCES:

p.

QUESTION TY

PE:

Multiple Choice

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.48 - LO: 7-

NATIONAL ST

ANDARDS:

USA - BUSPROG: Analytic

TOPICS: The Importance of Project Cost Management

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

b. managing changes to the project budget

c. finalising the actions for task costs

d. determining a basis for estimates

ANSWER: b

RATIONALE: Feedback: Controlling expenses requires managing alters to the task budget. The major outputs of the cost control process are work-related performance information, cost forecasts, change researches, project monitoring setup updates, project papers updates, and also business process assets updays.

See more: How Long Does It Take To Fly From Florida To California To Miami, Florida?

POINTS: 1

DIFFICULTY: Difficulty: Moderate

REFERENCES:

p.

QUESTION TY

PE:

Multiple Choice

HAS VARIABL

ES:

False

LEARNING O

BJECTIVES:

INFO.SCHW.14.48 - LO: 7-

NATIONAL ST

ANDARDS:

United States - BUSPROG: Analytic