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C176 Ch7

Terms in this set (48)

Which cost estimating technique uses historical data from past project along with expert judgement who have expertise in a certain area?

Top down

Bottom up

Three point

Parametric
Top down
Which cost estimating technique estimates the average value of optimistic and pessimistic estimates?

Top down

Bottom up

Three point

Parametric
Three point
Which cost estimating technique assigns an estimated cost to each work package on a project and provides estimates of the total project cost?

Top down

Bottom up

Three point

Parametric
Bottom up
Which cost estimating technique is available for complex projects and calculates cost by multiplying the quantity of work with the rate?

Top down

Bottom up

Three point

Parametric
Parametric
Of the two (Management reserve and Contingency Reserve) which one is controlled by the project manager?
Contingency Reserve
Of the two (Management reserve and Contingency Reserve) which one is not included as part of the project budget or cost baseline?
Management Reserve
Of the two (Management reserve and Contingency Reserve) which one is controlled by the upper administration?
Management Reserve
Which term related to EVM estimates whether the events planned are ahead or behind the planned value?

Schedule Variance

Cost Variance

Cost Performance Index
Schedule Variance
Which term related to EVM notifies whether the value price is higher or lower than the budgeted value?

Schedule Variance

Cost Variance

Cost Performance Index
Cost Variance
Which term related to EVM measures the value of the work completed at the measurement date against the actual value?

Schedule Variance

Cost Variance

Cost Performance Index
Cost performance index
Percentage of the work completed compared to the budget?

PV

AC

EV
EV
Cost of work budgeted for a specific schedule activity during a phase?

PV

AC

EV
PV
Cost spent on a project in a given period of time?

PV

AC

EV
AC
PV?
Planned Value
AC?
Actual Cost
EV?
Earned Value
Which risk planning component determines an action to be taken to reduce the negative impact of risk on a project?

Risk Monitoring

Risk Identification

Risk Analysis

Risk Response
Risk Response
Which risk planning component determines and document the potential risk events that could occur in a project?

Risk Monitoring

Risk Identification

Risk Analysis

Risk Response
Risk Identification
Which risk planning component determines the risks having the greatest possibility of occurring and the greatest impact to the project?

Risk Monitoring

Risk Identification

Risk Analysis

Risk Response
Risk Analysis
Which risk planning component observes the identified risks and their effectiveness throughout the project?

Risk Monitoring

Risk Identification

Risk Analysis

Risk Response
Risk Monitoring
"It's always about money!" Melinda grumbles, as she reads through yet another request to add something else to her project. Shaking her head, she recalls the previous risk planning sessions and remembers specifically bringing up the plausibility of scope creep and the impacts that would have on how funds for the project would be distributed. "How are we going to shift money around or reprioritize activities to pay for this? We're going to need more funding for this project." Which of the following statements below reflects a potential monetary impact on this project?

A. It could require additional resources to complete new tasks.

B. It could impact the contingency reserve.

C. It could delay the completion of the project.

D. It may require a redistribution of funds from other equally important deliverables of the project.
A C D
Individually estimating each work package, all of which are then rolled up, or added together, to come up with a total project estimate?


Very accurate means of estimating.
Bottom up estimating
An amount of money or time set aside and dedicated to the project to be used to cover unforeseen costs or time that was not identified as part of the planning process?
Contingency Reserve
The total approved, expected cost of the project created in the planning process?
Cost baseline
Measures the value of the work completed at the measurement date against actual cost?

Is the most critical of all EVM measurements.
CPI
CPI?
Cost Performance Index
What is calculated by using the formula:

Earned Value / Actual Cost?
CPI
Difference between a task's value at the measurement date ans its actual cost?
Cost Variance
What is calculated by using the formula:

Earned Value - Actual Cost?
Cost Variance
An amount of money set aside by upper management to cover future expenses that can't be predicted during project planning?
Managerial Reserve
Cost of work that's been budgeted for an activity during a certain period of time?
Planned Value
Measures the progress to date against the progress that was planned?
SPI
SPI?
Schedule Performance Index
What is calculated using the formula:

Earned Value / Planned Value?
SPI
The difference between a task's progress as compared to its estimated progress represented in terms of cost?
SV
SV?
Schedule Variance
You are developing a bottom-up estimate for the first phase of your project. Which of the following is the most important input to complete this task?

WBS

Scope Statement

Historic Data from a similar project

Chart of accounts
WBS
How is burn rate typically calculated?

CV

AC - PV

CPI

Determining spending rates over time
CPI
This technique can be used to help identify risks.
This

CPI

SWOT

CV

EVM
SWOT
Your project task is complex and you decide to use a three-point estimating technique. Which of the following options determine the three-point estimate? Choose three.

A. Rate Estimate

B. Resource Estimate

C. Pessimistic Estimate

D. Materials Estimate

E. Work package level estimate

F. Quantity Estimate

G. Most Likely Estimate

H. Optimistic Estimate
C G H
The clouds are rolling in over the horizon and the wind is picking up. Your outdoor event is about to get rained out. What is this an example of?

Risk analysis

Risk trigger

Risk response

Risk impact
Risk trigger
Top-down estimating is another name for which type of estimating technique?

Expert judgement

Three point estimating

Analogous Estimating

Parametric Estimating
Analogous Estimating
All of the following are true statements about project baseline except for which one?

A. The baseline is the total expected cost for the project

B. The baseline is calculated and approved by the project manager

C. The baseline can be used to predict future project costs

D. The baseline will be used to track actual spending against the cost estimates
B
Who approves a project baseline?
Project sponsor
You are asked to prepare an estimate for a project that involves planting new trees in the parking lot. The trees cost $800 each, and the labor to install them is $75 per hour. You are planting 10 new trees, and each tree takes one hour of labor to plant, stake, and water. What is the estimated cost of the labor for this project, and which technique are you using to determine this estimate? Choose two.

A. $750

B. 3-point estimate

C. $8,000

D. $8,750

E. Parametric method

F. Analogous method
A E
You are in the process of determining the cost baseline. All of the following are used in the cost baseline except for which one?

A. Materials and equipment estimates

B. Management reserves

C. Chart of accounts

D. Human resource cost estimated
B
True or False; Management reserves are part of the project cost budget?
False
Project costs when displayed graphically over time represent which of the following?
S Curve
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