Question 1

A(n) __________ is something that is a valuable but burdensome possession.

Accepted Answer

A "white elephant" is an idiom for a possession that is more troublesome or costly to maintain than it is worth, making it the correct choice.

Question 2

Project managers typically use ________, also called analogous estimating or the ______ method when there is a past history of similar projects and rough-cut estimates are needed for strategic purposes two-to-five years out because, as estimating methods go, it is faster and less expensive.

Accepted Answer

Top-down estimating, also known as analogous estimating or the apportion method, is used when there is a history of similar projects and rough estimates are needed, especially because it is quicker and more cost-effective for strategic planning.

Question 3

Costs that are not directly related to a specific project, such as advertising, accounting, and senior management's salary, are classified as _____________ costs.

Accepted Answer

General and administrative overhead costs include expenses that support the overall operations of a company and are not directly tied to a specific project. These costs, such as advertising, accounting, and senior management salaries, are necessary for the general operation of the company but cannot be directly attributed to the production of a specific product or service.

Question 4

The preferred method for situations involving strategic decision making, projects with a high degree of uncertainty, and projects with an unstable scope is the ___________ approach to estimating project time and costs.

Accepted Answer

The answer of The preferred method for situations involving strategic...

Question 5

The top-down method for estimating project time and cost that uses weighted variables based on major parameters and is frequently used in the development of software is known as the ____________ method.

Accepted Answer

The Function Point method is specifically designed for software development projects. It estimates project time and cost by evaluating the system's functionality, which is based on the number and complexity of inputs, outputs, user interactions, files, and interfaces. This method allows for a more accurate estimation in the context of software development by considering the major parameters that affect software projects.

Question 6

Estimates should be made based on ___________ conditions, efficient methods, and a normal level of resources.

Accepted Answer

Estimates should be made based on normal conditions, efficient methods, and a normal level of resources.

Question 7

Costs that are associated with time devoted to the coordination in meetings and briefings as well as time necessary to resolve disconnects between tasks are known as ____________ costs.

Accepted Answer

Interaction costs are those that are associated with time devoted to the coordination in meetings and briefings as well as time necessary to resolve disconnects between tasks.

Question 8

Mega projects are large-scale, complex ventures that typically cost _______ or more and take many ______ to complete.

Accepted Answer

Mega projects are generally defined as large-scale, complex ventures that cost $1 billion or more and take many years to complete.

Question 9

The salary of the project manager and temporary rental space for the project team would be classified as __________ costs.

Accepted Answer

The salary of the project manager and temporary rental space are costs directly associated with the project, making them direct project overhead costs.

Question 10

A way to improve estimates on future projects is to collect and archive data on past project estimates and actuals. Creating ___________ for estimating is a way to achieve this goal.

Accepted Answer

The answer of A way to improve estimates on future...

Question 11

The information necessary to conduct a bottom-up estimate of project time and cost starts with the ___________.

Accepted Answer

The information necessary to conduct a bottom-up estimate of project time and cost starts with the work package. A work package is the lowest level in the Work Breakdown Structure (WBS) and provides detailed information about the tasks, resources, and timelines, making it the starting point for bottom-up estimating.

Question 12

The preferred method for situations where the cost and time estimates are important, in a fixed contract situation, and when the customer wants a lot of detail is the ___________ approach to estimating project time and costs.

Accepted Answer

The bottom-up approach is preferred in situations where detailed and accurate cost and time estimates are crucial, such as in fixed contract scenarios. This method involves estimating the cost and time of individual tasks or components and then aggregating them to get the total project cost and duration, allowing for detailed and accurate planning as desired by the customer.

Question 13

The approach to estimating project time and cost that begins with an overall estimate for the project and then refines estimates for various stages of the project as it is implemented is known as ____________.

Accepted Answer

The phase estimating method starts with a broad estimate and refines it as the project progresses through its phases, making it more accurate as more details become available.

Question 14

Consider a five-mile-long railroad tunnel. Tunnel experts and advocates estimate the total cost to be $200 million. What is the reference class for this project? But reference class projects in this area have been over-budget by 30%. So, what should the actual revised budget number be for this proposed five-mile tunnel project?

Accepted Answer

The reference class should be similar projects, in this case, past tunnel projects. Given the 30% over-budget average, the revised budget should be $200 million * 1.30 = $260 million.

Question 15

A project estimator is working on estimates for a project that is very similar to a previous project, in that it has many of the same features and those features have similar costs. Each feature or deliverable will represent the same percentage of the total cost as it did for the previous project. He is using the _________ method of top-down estimating.

Accepted Answer

The estimator is using the apportion method of top-down estimating, which involves using the cost of previous, similar projects to estimate the cost of current projects, by apportioning the costs of individual components or features based on their contribution to the total cost in the previous projects.

Question 16

The top-down method of estimating project time and costs that is useful for projects requiring the same task, group of tasks, or product repeated several times, especially if it is labor intensive, is the ______________.

Accepted Answer

Learning curves are used in situations where tasks or products are repeated multiple times, especially in labor-intensive projects. They reflect the increased efficiency and time savings as workers gain experience.

Question 17

The estimating approach that is best to use on projects where there is an unusual amount of uncertainty surrounding the project and when it is impractical to estimate times and costs for the entire project is known as ___________.

Accepted Answer

The phase estimating method is best suited for projects with a high degree of uncertainty. It allows for the estimation of costs and times for each phase of the project as it progresses, rather than requiring a full project estimate upfront. This approach provides flexibility to adjust estimates as more information becomes available.

Question 18

The bottom-up method of estimating where work package time and costs for past projects are used as a starting point for a new project and adjustments are made based on differences in the new project is known as the ___________.

Accepted Answer

The template method involves using detailed past project information as a base for estimating time and costs for new projects, with adjustments made for differences in the new project. This bottom-up approach leverages historical data to inform new estimates.

Question 19

Project costs such as labor and materials are typically classified as ___________ costs.

Accepted Answer

Direct costs are those that can be directly attributed to a specific project. Labor and materials are two examples of direct costs.

Question 20

The top-down method of estimating when the pooled experience of senior and / or middle managers are used to estimate the total project duration and cost is the _________ method.

Accepted Answer

The consensus method involves using the pooled experience of senior and/or middle managers to estimate the total project duration and cost, making it a top-down estimating approach.

Quiz 5: Estimating Project Times and Costs