Overrun is the extr percentage amount by which estimates exceed yes, really costs.a. True

b. Fals e

ANSWER: False

RATIONALE: Feedback: Overrun is the extr percentage or dollar amount through which actual expenses 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:

United claims - BUSPROG: Analytic

TOPICS: The prestige of Project expense Management

KEYWORDS: Bloom"s: Knowledge

The main output of the planning cost management process is a change request.a. True

b. Fals e

ANSWER: False

RATIONALE: Feedback: The main output that the planning expense management process process is a expense management plan. Planning expense management involves determining the policies, procedures, and also documentation that will certainly be supplied 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 claims - BUSPROG: Analytic

TOPICS: The prominence of Project expense Management

KEYWORDS: Bloom"s: Knowledge

IT project supervisors must be able to present and discuss project info both in financial and technical terms.a. True

b. Fals e

ANSWER: True

RATIONALE: Feedback: most members the a company’s executive board have a far better understanding of gaue won terms than IT terms, and are much more interested in finance. Therefore, that project managers need to have the ability to present and also discuss project information both in jae won terms and technical 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: an easy Principles of price Management

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

b. Fals e

ANSWER: True

RATIONALE: Feedback: Cash flow analysis is a an approach of determining the estimated yearly costs and also benefits because that a project and the resulting annual cash flow. Project supervisors must command cash flow analysis to determine 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:

United says - BUSPROG: Analytic

TOPICS: basic Principles of price Management

KEYWORDS: Bloom"s: Comprehension

DATE CREATED:

It is crucial for project supervisors to focus on indirect costs due to the fact that they have the right to be conveniently controlled.a. True

b. Fals e

ANSWER: False

RATIONALE: Feedback: Direct prices can be directly related to producing the products and also services the the project. Project supervisors should focus on direct costs due to the fact that they can 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:

United claims - BUSPROG: Analytic

TOPICS: straightforward Principles of expense Management

KEYWORDS: Bloom"s: Comprehension

DATE CREATED:

b. Fals e

ANSWER: True

RATIONALE: Feedback: administration reserves permit for future instances that room unpredictable. For example, if a job manager gets sick for two weeks or an important supplier goes out of business, management reserves might 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:

United says - BUSPROG: Analytic

TOPICS: straightforward Principles of price Management

KEYWORDS: Bloom"s: Comprehension

DATE CREATED:

Contingency to make reservation are additionally known together unknown unknowns.a. True

b. Fals e

ANSWER: False

RATIONALE: Feedback: Contingency reserves allow for future cases that might be partly planned for. They space sometimes called 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:

United states - BUSPROG: Analytic

TOPICS: basic Principles of cost Management

KEYWORDS: Bloom"s: Knowledge

JECTIVES:

NATIONAL STA

NDARDS:

United says - BUSPROG: Analytic

TOPICS: Estimating Costs

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

Budgetary approximates are make even before a task is officially started.a. True

b. False

ANSWER: True

RATIONALE: Feedback: countless organizations construct budgets at the very least two years right into the future. Budgetary approximates are do one to 2 years prior to project 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 estimates are make one year or less prior to job completion. Lock provide an exact estimate of job 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 says - BUSPROG: Analytic

TOPICS: Estimating Costs

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

Estimates have to become more accurate together time progresses.a. True

b. False

ANSWER: True

RATIONALE: Feedback: estimates are usually done at various stages the a project and also should become more accurate 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:

United states - BUSPROG: Analytic

TOPICS: Estimating Costs

KEYWORDS: Bloom"s: Knowledge

Supporting details because that an estimate incorporate the ground rules and assumptions offered in producing the estimate.a. True

b. False

ANSWER: True

RATIONALE: Feedback: In addition to creating expense estimates because that the entire project and activity cost estimates, that is also important to provide supporting details because that the estimates

b. Fals e

ANSWER: False

RATIONALE: Feedback: Analogous approximates requires a an excellent deal of experienced judgment and is normally less costly than other techniques. However, that is likewise less accurate.

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 claims - BUSPROG: Analytic

TOPICS: Estimating Costs

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

b. Fals e

ANSWER: True

RATIONALE: Feedback: The size of the individual job-related items and the suffer of the estimators drive the accuracy of the estimates. Utilizing smaller job-related items rises the accuracy the the price estimate because the people assigned to do the work construct the price estimate instead of who unfamiliar with the work.

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 room reliable as soon as the models room flexible in terms of the project’s size.a. True

b. False

ANSWER: True

RATIONALE: Feedback: Parametric models are many reliable as soon as the historic information used to create the version is accurate, the parameters are easily quantifiable, and the model is versatile in terms of 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 says - BUSPROG: Analytic

TOPICS: Estimating Costs

KEYWORDS: Bloom"s: Comprehension

DATE CREATED:

One the the reasons why project price estimates are inaccurate is since human beings room biased towardunderestimation.a. True

b. False

ANSWER: True

RATIONALE: Feedback: one of the factors why project cost estimates are very inaccurate is since human beings are biased towards underestimation. It is thus essential for task managers and also top management to testimonial estimates and ask important

individual material resources or work-related items over time. These material resourcesor work items are based on the tasks in the work break down 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:

United says - BUSPROG: Analytic

TOPICS: determining the Budget

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

The project monitoring plan and project capital requirements are inputs that the procedure of managing costs.a. True

b. False

ANSWER: True

RATIONALE: Feedback: The project monitoring plan, project capital requirements, work-related performance data, and also organizational process assets space inputs for controlling 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:

United claims - BUSPROG: Analytic

TOPICS: regulating Costs

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

The formulas for variances and indexes begin with EV, the earn value.a. True

b. False

ANSWER: True

RATIONALE: Feedback: The formulas for variances and indexes begin with EV, the deserve value. Variances are calculated by individually the actual cost or planned value from EV, and indexes room calculated by dividing EV by the actual price 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: regulating Costs

KEYWORDS: Bloom"s: Comprehension

DATE CREATED:

b. Fals e

ANSWER: False

RATIONALE: Feedback: expense variance (CV) is the earned value minus the actual cost. If price variance is a negative number, it means that performing the job-related costs much more than planned. If cost variance is a hopeful number, performing the work expenses less 보다 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 power index of one method that the project is ~ above schedule.a. True

b. False

ANSWER: True

RATIONALE: Feedback: The schedule power index (SPI) is the proportion of earned value to planned value; it deserve to be supplied to estimate the projected time to finish the project. A schedule power index that one way the job 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 says - BUSPROG: Analytic

TOPICS: regulating Costs

KEYWORDS: Bloom"s: Comprehension

DATE CREATED:

a. True

b. Fals e

ANSWER: False

RATIONALE: Feedback: Viewing earn value information in chart kind helps in visualizing just how a task is performing. If the actual cost line is constantly on or above the earned value line, it suggests that expenses are same to or an ext 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:

United says - BUSPROG: Analytic

TOPICS: controlling Costs

KEYWORDS: Bloom"s: Comprehension

DATE CREATED:

Spreadsheets space a typical tool for price estimating, cost budgeting, and also cost control.a. True

b. False

ANSWER: True

RATIONALE: Feedback: Most institutions use software to assist in various tasks related to project expense management. Spreadsheets room a usual tool for cost estimating, cost budgeting, and also 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: utilizing Project management Software to assist In Project price 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 says - BUSPROG: Analytic

TOPICS: The prestige of Project cost Management

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

Which procedure involves allocating the overall cost calculation to individual job-related items to develop a baseline formeasuring performance?a. Identify the budget b. Finalizing policies for project costs

c. Regulating costs d. Estimating costs

ANSWER: a

RATIONALE: Feedback: identify the budget involves allocation the all at once 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 prestige of Project expense Management

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

b. Expense estimating

c. Cost budgeting d. Cost planning

ANSWER: c

RATIONALE: Feedback: determining the budget involves allocating the in its entirety cost estimate to individual work-related items to develop a baseline for measuring performance. The key outputs that the price budgeting procedure are a price baseline, project funding requirements, and project 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 claims - BUSPROG: Analytic

TOPICS: The prestige of Project price Management

KEYWORDS: Bloom"s: Knowledge

DATE CREATED:

b. Managing alters to the task budget

c. Finalising the measures for job costs

d. Identify a basis for estimates

ANSWER: b

RATIONALE: Feedback: managing costs entails controlling alters to the project budget. The main outputs the the expense control procedure are occupational performance information, cost forecasts, change requests, project management plan updates, project records updates, and organizational procedure assets updates.

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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