A rough order of magnitude estimate is made during which project management process group?
A. Planning
B. Closing
C. Executing
D. Initiating
Answer: D
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Cost Management Chapter 7
- Which of the following is not an output of the Determine Budget process?
- The project sponsor wants to know the status of the project, and the amount of variance from plan, if any. The project manager has determined that the PV of the project is $800,000, the EV is $750,000, and the AC is $775,000. The project manager should tell the project sponsor that the project ________.
- You are building a house. You need to estimate the costs for the foundation. You have the following data: 30 cubic yards (CY) of soil to be removed; 2,600 pounds of steel rebar to be installed; and 20 CY of concrete to be placed. Soil removal costs $100/CY; steel rebar cost $1.50/pound installed, and concrete costs $400/CY placed. Which of the following is the best estimate of the cost of building the foundation for the house?
- Your project has a PV of $48,000, EV of $32,000, and AC of $44,000. What is the CV as a percentage of the work accomplished?
- The project manager wants to know how efficiently the project is using resources. He knows that the work currently accomplished is worth $32,000, the project should have completed work worth $48,000 by now, and the current spending stands at $44,000. Based on this information, the project manager determines that the project is ______.
- A construction project has an SPI of 1.05 and a CPI of 0.96. Based on this information, which of the following statements is most likely to be true?
- The project manager leading an IT project has determined that the planned value of a certain activity is $15,000. She has also determined that quality control for that activity will be 10 percent of that activity. Therefore, the project manager determines that the planned value of quality control for that activity is $1,500. Which of the following approaches for determining earned value has the project manager used?
- A construction project is scheduled to take six months and cost $1.2 million to complete. After three months, the project has spent $575,000, and 55 percent of the project work has been completed. Assuming that the team's efficiency remains the same for the remainder of the project, what is the expected cost to finish all remaining project work?
- The project manager is creating the cost management plan for the project. Which of the following tools and techniques would she not use to create the plan?
- The project manager leading a factory renovation project internal to the organization has been asked to take life-cycle costs into account when making decisions that will affect the project. Which of the following statements should give the project manager the most cause for concern?
- Which of the following are two methods of accelerated depreciation?
- Which of the following statements concerning the cost baseline is not true?
- An organization has purchased a large crane for a construction project expected to take 10 years to complete. The crane cost $250,000 to purchase and install. At the end of its life (10 years), it will have a scrap value of $50,000. Using straight-line depreciation, how much would you depreciate the crane, each year, if the expected long-term interest rate was 5 percent and the company used an IRR of 15 percent?
- The project sponsor asks the project manager to determine the cost performance needed with the remaining project resources in order to meet the project goal. The project is scheduled to take two years to complete and cost $1 million. Eight months into the project, $300,000 has been spent and 35 percent of the work has been completed. The project manager believes that the $1 million figure will remain viable for the remainder of the project. Which of the following answers would best help the project manager answer the sponsor's question?
- A project has an initial budget of $5 million and is 50 percent complete. It is also 50 percent over budget. The money that has been spent on the project is known as a(n) _________.
- Which of the following statements concerning management reserves is true?
- The project manager and project team are beginning to estimate the costs of the project. Which of the following documents should they consult to learn about funding constraints?
- Senior management wants to know whether the project is currently over or under budget and by how much. The project manager has determined that the PV of the project is $875,000, the EV is $850,000, and the AC is $900,000. The project manager should tell senior management that the project is ___________.
- Which of the following is not an input to the Determine Budget process?
- You are a foundation contractor. Over many projects of a certain size, you have developed a cost factor a $400 per linear foot of foundation. Which estimating technique are you using?
- When the project charter was being prepared, the costs of the project could only be estimated to a rough order of magnitude; however, late in planning, as more details became available, it was possible to make a definitive estimate, which could be narrowed to a ______________ percent range.
- The project manager is creating the guidelines for managing costs on the project. Which of the following is an input to the process in which she is engaged?
- The project manager and project team are attempting to determine how much it will cost to complete all project activities. Which of the following tools and techniques would they not use in the process in which they are engaged?
- What is the difference between costs and price?
- The project manager leading a training project is trying to decide on an approach for determining an earned value for the project management activities on the project. Which of the following approaches would be the best option for her to choose for these activities?