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Business Analytics & Technology Management Chapter 5
Business Analytics & Technology Management Chapter 5 MCQs
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The process of forecasting or approximating the time and cost of completing project deliverables is called
Budgeting
Predicting
Estimating
Planning
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In practice, estimating processes are frequently classified as
Top down/bottom up
Rough/polished
Precise/order of magnitude
Draft/final
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A typical statement in actual practice is that estimates should have a probability of being met ______ of the time.
100%
98%
95%
90%
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A good starting point for developing time and cost estimates is
Past experience
Work packages
Task analysis
Time and motion studies
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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?
Planning horizon
People
Padding estimates
Profit
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Ed is looking over the actual results of projects and comparing them to what was estimated. He notices that projects that took six months or longer to...
Padding estimates
Planning horizon
Project structure
People
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Janet is forecasting how much money her department needs to support a new project. She estimates that two people and $25,000 in expenses will cover he...
Padding estimates
Planning horizon
Project structure
People
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Which of the following is a good condition for top-down estimating?
Cost and time important
Fixed price contract
Customer wants details
Internal, small project
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Which of the following is a good condition for bottom-up estimating?
Strategic decision making
Internal, small project
Fixed price contract
High uncertainty
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Top-down estimates are most likely to occur during the ______ phase.
Concept
Planning
Execution
Delivery
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______ estimates are most likely to use low cost, efficient methods.
Apportion
Ratio
Top-down
Bottom-up
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Which of the following methods is not considered a top-down approach to estimating project time and cost?
Ratio
Template
Apportion
Function point
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Jose is forecasting project time and cost for constructing a new building by multiplying the total square footage by a given dollar amount. Which of t...
Ratio
Template
Apportion
Function point
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Sean is forecasting the time and cost of developing a customized software program by looking at the number of inputs, outputs, inquires, files, and in...
Ratio
Template
Apportion
Function point
?
Learning curves are more likely to apply in situations where most of the costs are
Materials
Labor
Overhead
Evenly spread over materials, labor, and overhead
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Which of the following is not one of the bottom-up approaches to estimating project time and cost?
Parametric procedures applied to specific tasks
Estimates for the WBS work packages
Learning curve
Template method
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The approach that begins with a top-down estimate for the project and then refines estimates as the project is implemented is known as ______ method. ...
Function point
Template
Learning curve
Phase estimating
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Which of the following would be the best method for projects where the final product is not known and the uncertainty is very large?
Function point
Template
Learning curve
Phase estimating
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The accuracy of top-down estimates will typically be in the range of
Minus 50% to plus 50%
Minus 0% to plus 75%
Minus 20% to plus 60%
Minus 35% to plus 35%
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The accuracy of bottom-up estimates will typically be in the range of
Minus 50% to plus 50%
Minus 0% to plus 75%
Minus 20% to plus 60%
Minus 10% to plus 30%
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The cost to prepare bottom-up estimates will typically run how much more than the costs to prepare the top-down estimates?
About the same
About twice as much
About three times as much
About four times as much
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Typical kinds of costs found in a project include
Direct costs
Project overhead costs
General and administrative costs
A, B, and C are all included
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Project costs are typically viewed from all of the following except:
Scheduled
Sunk
Actual
Committed
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Which of the following would be considered a direct project cost?
Labor
Materials
Equipment
A, B, and C are all considered direct costs
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Which of the following is not one of the recommended guidelines for developing useful work package estimates?
Estimates should be made by those responsible for the work
Use several people to estimate the same work
Estimates should be based on normal conditions
Estimates should include a normal level of contingency
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Companies like Boeing, Kodak, and IBM are using which of the following for improving the estimating process?
Adjusting estimates based on individual forecasting abilities
Benchmarking using the experience of other companies
Using time and motion studies
Creating historical databases of previous projects
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Reasons why estimating time and cost are important include all of the following except:
To schedule work
To determine how long the project should take and cost
To develop cash flow needs
All of the above are valid reasons
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In a learning curve, the improvement ratio is applied to which of the following items?
Direct materials
Direct labor
Overhead
Both A and B are correct
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The bottom-up approach for estimating times and costs that uses costs from past projects that were similar to the current project is known as:
Detailed WBS work package estimates
Template method
Function point method
Time-phased cost estimates
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Which of the follow top-down methods is used when projects closely follow past projects in features and costs and result in costs being assigned by pe...
Apportion
Function point
Phase estimating
Learning curve
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Resource shortages, in the form of people, equipment, or materials, is a good example of
Hidden interaction costs
Things going wrong on a project
Normal conditions not applying
Changes in project scope
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People working on prototype development needing time to interact with the design engineers after the design is completed is an example of:
Hidden interaction costs
Things going wrong on a project
Normal conditions not applying
Changes in project scope
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A manager getting further into a project and obtaining a better understanding of what needs to be done to accomplish a project is an example of:
Hidden interaction costs
Things going wrong on a project
Normal conditions not applying
Changes in project scope
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Design flaws being revealed after the fact, extreme weather conditions, and accidents occurring are examples of:
Hidden interaction costs
Things going wrong on a project
Normal conditions not applying
Changes in project scope