MG585

Costs that repeat as project work continues such as the cost of writing code or laying bricks are appropriately classified as:
Click the card to flip 👆
1 / 60
Terms in this set (60)
Costs that repeat as project work continues such as the cost of writing code or laying bricks are appropriately classified as:
recurring costs
The process of developing an approximation of monetary resources needed to complete project activities is known as:
estimate cost.
Which estimating technique uses a statistical relationship between historical data and other variables (e.g., square footage in construction, lines of code in software development) to calculate an estimate for scope, cost and duration?
parametric estimating
Projects often include indirect costs that are necessary to keep the organization running, but are not associated with one specific project. Which of the following items are most typically considered to be indirect costs?
executive salaries, utilities and insurance
The documentation of a project cost estimate generally requires substantial supporting detail to include all of these EXCEPT:
management reserve needs
Which estimating technique decomposes the work into lower, more detailed pieces, preferably the lowest level of WBS work elements, for which estimates are prepared and then aggregates them into a total quantity for the project?
bottom-up estimating
Which of the following terms best describes extra money in the project budget to be used if necessary - usually if a risk event occurs?
reserve
All of the following items describe an aspect of life cycle costing EXCEPT:
Life cycle cost only includes the project cost from initiating through closing
"Unknown unknowns" are unexpected events which can occur when the project is underway. All of the following accurately describe an implication associated with unknown unknowns EXCEPT:
They are usually discovered during risk identification
What type of cost is incurred when a project must be conducted faster than normal, and overtime for workers and / or extra charges for rapid delivery from suppliers are necessary?
expedited costs
Complex projects such as research and development for new products often employ rolling wave planning to estimate costs. Which of the following best describes "rolling wave" planning?Project managers render a definitive estimate for the first stage and an order of magnitude estimate for the remainder of the project.The _________is the approved budget, usually in a time distribution format, that is used to estimate, monitor, and control the overall cost performance of the project.cost baseline.The cost management plan provides guidelines to the project manager and other stakeholders and serves all of the following purposes EXCEPT:It documents how the project statement of work and business case should be created.A milestone is a typical measuring point used when establishing cost control. Which of the following does NOT accurately describes the use of cost control milestones?Milestones are developed during risk planning.Which estimating technique uses a statistical relationship to calculate cost or duration based on historical data and other project parameters?parametric estimatingEvents discovered during Identify Risks that may or may not occur are often categorized as:known unknownsAll of the following factors must be in place in order to develop an analogous estimate effectively EXCEPT:An organization must know details behind the time value of money.Activity based costing allocates overhead (indirect costs) to fixed costs based upon four different types of drivers. Which of the following is one of the cost drivers that serves as a basis of cost allocation?number of units producedThere are many causes of variation in project costs. Which of the following accurately describes the nature of this variation?Variation occurs in all work processes and the novelty associated with most projects creates many opportunities for variation.$46,000When a project team elects to purchase insurance, or adopts a fixed price contract with a vendor, or hires an expert, it is demonstrating which of the following risk response strategies?transfer a threatWhich of the following describes how the team uses a cause-and-effect diagram to support project risk analysis?The team lists the risk as the "effect" in a box at the head of a fish, then names the big bones.Project teams can often identify risks by conducting any of several types of reviews. Which of the following illustrates a valuable type of risk review?review the communication plan to determine where poor communications could cause a problemAll of the following methods have proven to be useful techniques to help project teams identify the risks that might impact the project EXCEPT:documenting lessons learnedAll of the following activities are appropriate upon completion of risk response planning EXCEPT:The risk register should be baselined after planning is completed, and should not be updated once the project is in flight.A ________ presents a hierarchical organization of risks based on categories such as operational, strategic, finance, external, and project management.Risk Breakdown Structure (RBS)On agile projects, detailed risk management activities may occur during all of the following times EXCEPT:During early risk planning at the start of the project.All of the following activities illustrate a risk response strategy designed to exploit an opportunity EXCEPT:purchase insuranceConsider the excerpt of the Internet Project risk register presented in Figure 10-1. Which of the following risk events should receive the highest priority for the development of risk responses? C - IS resources are spread too thinWhich of the following activities illustrates a risk response strategy designed to research a threat or an opportunity?construct a prototype to learn more about a candidate solutionProject managers can identify risks by learning and understanding the cause and effect relationships that bear on risk events. All of the following approaches rely upon an understanding of cause and effect relationships to identify risks EXCEPT:perform a Monte Carlo analysisWhich of the following describes the activities appropriately performed by the project team during Perform Qualitative Risk Analysis?Team members assess the probability of occurrence and severity of impact for identified risks.Which of the following accurately describes risk in project management?A risk may impact the project in a positive or negative way.All of the following are among the classic risk response strategies EXCEPT:share a threatAll of the following describe the appropriate application of Perform Quantitative Risk Analysis in project management EXCEPT:Brainstorming techniques are used by the team and other stakeholders to identify as many project risks as possible.Which of the following activities illustrates a risk response strategy designed to mitigate a threat?train a team member to cover for a potentially unavailable key resourceAll of these describe contemporary methods of risk prioritization in project management EXCEPT:Results of quantitative risk analysis are used for clarification purposes and are typically not documented in the risk register.Which of the following quantitative risk analysis techniques is used to determine which risks have the most powerful impact on the project, with results displayed in the form of a tornado diagram?Sensitivity AnalysisAll of the following are benefits that can be attributed to the effective use of a risk management plan EXCEPT:It enables the project manager to identify and eliminate all risksAll of the following criteria can be used to categorize project risks EXCEPT:whether the risk is a known knownWhich of these is NOT a reason to design quality into processes rather than to find problems later through inspections?The best inspectors can find every variation and defectDuring which DMAIC phase would you find the objectives of: identify possible root causes, collect data, and confirm root causes through data analysis?AnalyzeThe four contemporary core project quality concepts that evolved from the quality gurus and frameworks include which of the following?stakeholder satisfactionAll of the following statements accurately describe special cause variation EXCEPT:It is inherent in the system and is predictable.The decision process for developing relevant quality standards on a project includes all of the following activities EXCEPT:design work systemsAll of the following items are among the key areas covered by the Malcolm Baldrige National Quality Award EXCEPT:Team LearningDMAIC is a disciplined process that includes five phases: Define, Measure, Analyze, Improve and Control. DMAIC is most typically associated with which of the following quality improvement approaches?Six SigmaNormal or random variations that are considered part of operating the system at its current capability are ______:common cause variations.Which of these would NOT typically be found in a Quality Management Plan?Team selection criteriaWhich of these is a measurement used to ensure customers receive acceptable products or deliverables?quality metricWhich of the following statements is consistent with the ideas that W. Edwards Deming promoted regarding quality management?Understanding variation is essential to improving quality.After completing detailed planning for a project, it is often helpful for the project manager and team to apply a sanity test to the project plan. Which of the following accurately describes the application of a sanity test?It should include questions to ensure budgets, schedules and resource plans are reasonable and achievable.Joseph Juran provided guidance regarding how to control quality. Which of the following items is consistent with his quality control guidance?establish measurement systemsJoseph Juran provided guidance regarding how to conduct quality planning, quality control, and quality improvement. Which of the following items is NOT part of Juran's Quality Trilogy?work to identify root causes, not just symptomsAll of the following items are valid reasons to conduct a project kick-off meeting EXCEPT:to emphasize that all decisions will be made exclusively by the project managerAll of the following items contribute to developing empowered performance in an organization EXCEPT:accepting the fact that the project manager has total decision making authorityWhich of the following activities are typically included in a project kick-off meeting?The project manager outlines the project goals.Which of the following documents describes how the project team will implement the performing organization's quality policy?quality management planWhich of the following quality management thought leaders is generally credited with contributing the insight that team learning is necessary to improve quality?SengeWhich of the following serves as a pre-condition that must be met in order for a project kick-off meeting to be successful?An atmosphere of trust and relationship building should be set by all.