Question 1

Work package estimates should include allowances for contingencies.

Accepted Answer

The answer of Work package estimates should include allowances for...

Question 2

Repetition of a task generally results in a reduction of labor hours each successive time a worker performs that task.
A) budgeting.
B) predicting.
C) estimating.
D) planning.
E) guesstimating.

Accepted Answer

This concept is related to estimating, as it involves calculating or judging the approximate amount, value, or worth of something, in this case, the labor hours required for a task after repeated attempts.

Question 3

A project leader is forecasting how much money his department needs to support a new project. He estimates that two people and $25,000 in expenses will cover his needs. Because management typically insists on reducing forecasts by 20 percent, he increases his estimates to allow for that reduction. Which of the following factors is illustrated in this situation?
A) Padding estimates
B) Planning horizon
C) Project structure
D) People
E) Organization culture

Accepted Answer

The project leader is intentionally inflating his estimates to counteract the expected reduction by management, which is an example of "padding estimates."

Question 4

What is the relationship between organizational culture and estimating?
A) There is no relationship.
B) Cultural norms affect the accuracy of estimates.
C) Culture determines whether estimates are made.
D) Estimating alters cultural norms.
E) Estimating and culture are independent.

Accepted Answer

Cultural norms within an organization can significantly influence the accuracy of estimates by affecting how information is shared, the level of detail considered acceptable, and the degree of conservatism or optimism in making projections.

Question 5

Estimates are supposed to be based on normal conditions. While this is a good starting point, it rarely holds true in real life.

Accepted Answer

Estimates are indeed based on normal conditions as a starting point, but real-life scenarios often involve unforeseen variables and complexities that can cause actual outcomes to deviate from these initial estimates.

Question 6

Which of the following would best represent direct project costs?
A) Only labor
B) Only materials
C) Only equipment
D) Both labor and materials
E) Labor, materials and equipment

Accepted Answer

Direct project costs include all costs that are directly attributable to the project, such as labor, materials, and equipment. These costs are directly related to the production or execution of the project, making option E the correct answer.

Question 7

Which of the following is a good condition for bottom-up estimating?
A) When the project involves strategic decision making
B) When the project is internal and small
C) When there is a fixed price contract
D) When there is high uncertainty involved in the project
E) When there is an unstable scope

Accepted Answer

The answer of Which of the following is a good...

Question 8

The salary of the project manager would be an example of what type of cost found in a project?
A) Labor
B) Direct
C) Direct project overhead
D) General and administrative overhead
E) Salary

Accepted Answer

The salary of the project manager is considered a direct project overhead cost because it is directly associated with managing the project but not directly tied to a specific task or deliverable.

Question 9

A good starting point for developing time and cost estimates is
A) past experience.
B) work packages.
C) task analysis.
D) time and motion studies.
E) work breakdown structure.

Accepted Answer

Past experience is a good starting point for developing time and cost estimates because it provides a basis for comparison.

Question 10

Typical kinds of costs found in a project include all of the following EXCEPT
A) direct costs.
B) project overhead costs.
C) general and administrative overhead costs.
D) labor.
E) All of these are examples of costs found in a project.

Accepted Answer

All of the options listed (direct costs, project overhead costs, general and administrative overhead costs, and labor) are indeed examples of costs that can be found in a project. Direct costs are directly attributable to the project, such as materials and labor. Project overhead costs are costs incurred for the benefit of the project but not directly chargeable to it, such as rent for project office space. General and administrative overhead costs are the company's overhead costs that are shared across projects, such as executive salaries. Labor costs are the wages paid to workers directly involved in the project.

Question 11

A home builder is collecting estimates for a house that he will have the funding to build in 12 months. Which of the following factors does he need to consider in regard to the quality of these estimates?
A) Padding estimates
B) Planning horizon
C) Project structure
D) People
E) Project duration

Accepted Answer

The planning horizon is crucial because the estimates are for a project that will start in 12 months, and the accuracy of estimates can decrease as the time between estimation and project start increases.

Question 12

Which of the following does NOT help describe a bottom-up estimating approach?
A) They are made by someone who uses experience and / or information from someone else to determine overall project cost and duration.
B) They establish low-cost, efficient methods for completing activities.
C) They typically come from the people actually doing the work and who are most knowledgeable about the task at hand.
D) Estimates are made at the work package level and then "rolled up" to determine estimates for major deliverables and for the project itself.
E) They can take place after the project has been planned in detail.

Accepted Answer

Bottom-up estimating involves detailed estimates made by those doing the work, not by someone using others' experience or information.

Question 13

Which of the following is NOT true in regard to the level of detail estimates should contain?
A) It will vary with the complexity of the project.
B) Detailed estimates are crucial to project success; therefore, an effort should be made to make estimates as detailed as possible for all projects.
C) The more detailed the estimate is the more the estimate will cost to create.
D) Inadequate detail might lead to estimates that fall short of their intended purpose.
E) Excessive detail means unproductive paperwork and unnecessary expenditures.

Accepted Answer

Estimates should be detailed enough to be useful and accurate, but overly detailed estimates for all projects can be unnecessarily costly and time-consuming. The level of detail should be appropriate to the project's complexity and the stage of the project, rather than always aiming for maximum detail.

Question 14

A project manager is looking over the actual results of projects and comparing them to what was estimated. She notices that the projects that took six months or longer to complete were noticeably more off the estimates. Which of the following factors is she recognizing?
A) Padding estimates
B) Project duration
C) Project structure
D) People
E) Organization culture

Accepted Answer

The project manager is recognizing the impact of project duration on the accuracy of estimates. Longer projects are more likely to deviate from initial estimates due to the increased complexity and uncertainty over time.

Question 15

Accounting would be an example of which of the following costs typically found in a project?
A) Labor
B) Direct
C) Direct project overhead
D) General and administrative overhead
E) Salary

Accepted Answer

Accounting costs are typically considered general and administrative overhead, as they are not directly tied to a specific project but rather support the overall functioning of the organization.

Question 16

Mega Projects often under deliver on expected benefits and cost more than expected.

Accepted Answer

Mega projects frequently face challenges such as cost overruns, delays, and not fully delivering the anticipated benefits due to their complexity, scale, and the optimistic assumptions made during the planning phase.

Question 17

Which of the following is a good condition for top-down estimating?
A) Cost and time important
B) Fixed price contract
C) Customer wants details
D) Internal, small project
E) Large scale project involving several subcontractors

Accepted Answer

Top-down estimating is suitable for internal, small projects where detailed estimates are not necessary, and a rough estimate is sufficient.

Question 18

General and administrative costs are usually allocated as a percent of the total of a direct cost which includes labor, materials, or equipment.

Accepted Answer

General and administrative costs are often allocated as a percentage of direct costs like labor, materials, or equipment to distribute overhead expenses proportionally across projects or departments.

Question 19

Which of the following is NOT one of the factors that need to be considered to improve quality of estimates for project times and costs?
A) planning horizon
B) people
C) padding estimates
D) profit
E) project structure

Accepted Answer

Profit is not a direct factor in improving the quality of estimates for project times and costs. The focus is on aspects like planning, the team involved, the approach to estimating, and the project's structure, rather than financial outcomes like profit.

Question 20

In practice, estimating processes are frequently classified as
A) top down / bottom up.
B) rough / polished.
C) precise / order of magnitude.
D) draft / final.
E) broad / specific.

Accepted Answer

Estimating processes are often classified as "top down" or "bottom up." Top-down estimating involves starting with a global view and breaking it down into smaller components, while bottom-up estimating starts with detailed individual components and aggregates them into a total estimate.

Quiz 5: Estimating Project Times and Costs

Work package estimates should include allowances for contingencies.

Repetition of a task generally results in a reduction of labor hours each successive time a worker performs that task.

What is the relationship between organizational culture and estimating?

Estimates are supposed to be based on normal conditions. While this is a good starting point, it rarely holds true in real life.

Which of the following would best represent direct project costs?

Which of the following is a good condition for bottom-up estimating?

The salary of the project manager would be an example of what type of cost found in a project?

A good starting point for developing time and cost estimates is

Typical kinds of costs found in a project include all of the following EXCEPT

A home builder is collecting estimates for a house that he will have the funding to build in 12 months. Which of the following factors does he need to consider in regard to the quality of these estimates?

Which of the following does NOT help describe a bottom-up estimating approach?

Which of the following is NOT true in regard to the level of detail estimates should contain?

A project manager is looking over the actual results of projects and comparing them to what was estimated. She notices that the projects that took six months or longer to complete were noticeably more off the estimates. Which of the following factors is she recognizing?

Accounting would be an example of which of the following costs typically found in a project?

Mega Projects often under deliver on expected benefits and cost more than expected.

Which of the following is a good condition for top-down estimating?

General and administrative costs are usually allocated as a percent of the total of a direct cost which includes labor, materials, or equipment.

Which of the following is NOT one of the factors that need to be considered to improve quality of estimates for project times and costs?

In practice, estimating processes are frequently classified as