Overrun is the additional portion amount whereby approximates exceed actual prices.a. True

b. Fals e

ANSWER: False

RATIONALE: Feedback: Overrun is the extra percent or dollar amount whereby actual costs exceed approximates.

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:

United States - BUSPROG: Analytic

TOPICS: The Importance of Project Cost Management

KEYWORDS: Bloom"s: Knowledge

The primary output of the planning expense monitoring process is a readjust repursuit.a. True

b. Fals e

ANSWER: False

RATIONALE: Feedback: The main output of the planning expense monitoring procedure procedure is a price administration plan. Planning price administration entails determining the plans, procedures, and also documentation that will be used for planning, executing, and controlling project cost.

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:

United States - BUSPROG: Analytic

TOPICS: The Importance of Project Cost Management

KEYWORDS: Bloom"s: Knowledge

IT project managers should be able to current and also discuss project information both in financial and also technical terms.a. True

b. Fals e

ANSWER: True

RATIONALE: Feedback: Most members of a company’s executive board have a much better expertise of financial terms than IT terms, and are more interested in finance. Because of this, IT project managers must be able to present and discuss task indevelopment both in financial terms and also 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:

USA - BUSPROG: - Comprehension

TOPICS: Basic Principles of Cost Management

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

b. Fals e

ANSWER: True

RATIONALE: Feedback: Cash flow evaluation is a technique of determining the approximated yearly expenses and benefits for a job and also the resulting yearly cash circulation. Project supervisors must conduct cash flow analysis to identify net current value.

POINTS: 1

DIFFICULTY: Difficulty: Easy

REFERENCES:

p.

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 necessary for project managers to focus on instraight expenses because they can be conveniently regulated.a. True

b. Fals e

ANSWER: False

RATIONALE: Feedback: Direct expenses have the right to be straight related to developing the commodities and also solutions of the task. Project supervisors should emphasis on straight expenses bereason they have the right to be managed.

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 permit for future instances that are unpredictable. For instance, if a job manager gets sick for two weeks or a crucial supplier goes out of company, management reserves might be collection aside to cover the resulting prices.

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:

United States - BUSPROG: Analytic

TOPICS: Basic Principles of Cost Management

KEYWORDS: Bloom"s: Comprehension

DATE CREATED:

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

b. Fals e

ANSWER: False

RATIONALE: Feedback: Contingency reserves permit for future instances that may be partially planned for. They are sometimes referred to as known 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 approximates are made even before a project is officially started.a. True

b. False

ANSWER: True

RATIONALE: Feedback: Many kind of establishments develop budgets at least two years right into the future. Budgetary estimates are made one to two years prior to 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:

United States - BUSPROG: Analytic

TOPICS: Estimating Costs

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

b. Fals e

ANSWER: True

RATIONALE: Feedback: Definitive approximates are made one year or much less prior to job completion. They provide an exact estimate of project costs.

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:

United States - BUSPROG: Analytic

TOPICS: Estimating Costs

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

Price quotes must become more exact as time progresses.a. True

b. False

ANSWER: True

RATIONALE: Feedback: Quotes are typically done at miscellaneous steras of a project and have to become even more specific 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 also presumptions provided in creating the estimate.a. True

b. False

ANSWER: True

RATIONALE: Feedback: In addition to developing cost approximates for the whole project and also task price estimates, it is additionally vital to carry out sustaining details for the estimates

b. Fals e

ANSWER: False

RATIONALE: Feedback: Analogous approximates needs a good deal of skilled judgment and is mainly less costly than other approaches. However before, it is also much less exact.

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:

b. Fals e

ANSWER: True

RATIONALE: Feedback: The dimension of the individual occupational items and the suffer of the estimators drive the accuracy of the estimates. Using smaller occupational items increases the accuracy of the expense estimate bereason the human being assigned to carry out the job-related construct the expense estimate rather of someone unacquainted with the occupational.

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 trusted once the models are functional in regards to the project’s size.a. True

b. False

ANSWER: True

RATIONALE: Feedback: Parametric models are many dependable as soon as the historic indevelopment used to develop the version is exact, the parameters are conveniently quantifiable, and also the design is functional in terms of the project’s dimension.

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 reasons why task price estimates are inaccurate is because human beings are biased towardunderestimation.a. True

b. False

ANSWER: True

RATIONALE: Feedback: One of the factors why job expense approximates are exceptionally inexact is because humans are biased toward underestimation. It is for this reason vital for job supervisors and peak monitoring to evaluation approximates and also ask important

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

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:

United States - BUSPROG: Analytic

TOPICS: Determining the Budget

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

The project management plan and also job capital requirements are inputs of the process of managing expenses.a. True

b. False

ANSWER: True

RATIONALE: Feedback: The task monitoring setup, task funding demands, work-related performance information, and business process assets are inputs for managing prices.

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:

United States - BUSPROG: Analytic

TOPICS: Controlling Costs

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

The formulas for variances and also indexes begin via EV, the earned value.a. True

b. False

ANSWER: True

RATIONALE: Feedback: The formulas for variances and indexes start with EV, the earned value. Variances are calculated by subtracting the actual expense or planned value from EV, and also indexes are calculated by dividing EV by the actual expense 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:

United States - BUSPROG: Analytic

TOPICS: Controlling Costs

KEYWORDS: Bloom"s: Comprehension

DATE CREATED:

b. Fals e

ANSWER: False

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

United States - BUSPROG: Analytic

TOPICS: Controlling Costs

KEYWORDS: Bloom"s: Comprehension

DATE CREATED:

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

b. False

ANSWER: True

RATIONALE: Feedback: The schedule performance index (SPI) is the proportion of earned worth to planned value; it can be provided to estimate the projected time to complete the task. A schedule performance index of one indicates 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 value information in chart form helps in visualizing how a job is performing. If the actual cost line is always on or over the earned worth line, it shows that expenses 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 price control.a. True

b. False

ANSWER: True

RATIONALE: Feedback: Many establishments usage software to help in assorted activities concerned job price management. Spreadsheets are a prevalent tool for cost estimating, price budgeting, and also expense 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:

USA - 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:

USA - BUSPROG: Analytic

TOPICS: The Importance of Project Cost Management

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

Which process involves allocating the in its entirety expense estimate to individual work items to develop a baseline formeasuring performance?a. determining the budobtain b. finalizing policies for project costs

c. managing costs d. estimating costs

ANSWER: a

RATIONALE: Feedback: Determining the budacquire requires allocating the in its entirety cost estimate to individual job-related items to establish 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. expense estimating

c. expense budgeting d. cost planning

ANSWER: c

RATIONALE: Feedback: Determining the budobtain involves allocating the overall cost estimate to individual occupational items to develop a baseline for measuring performance. The main outputs of the cost budgeting process are a expense baseline, project capital needs, and also task records 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:

United States - BUSPROG: Analytic

TOPICS: The Importance of Project Cost Management

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

b. regulating transforms to the task budget

c. finalising the actions for project costs

d. determining a basis for estimates

ANSWER: b

RATIONALE: Feedback: Controlling expenses entails regulating changes to the task budobtain. The primary outputs of the price manage procedure are work-related performance information, expense forecasts, readjust researches, job management arrangement updays, job files updates, and business process assets updays.

See more: How Much Is 70 Euros In Dollars, 70(Eur) Euro(Eur) To Us Dollar(Usd)

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:

USA - BUSPROG: Analytic