ch7 - ch7 True/False Indicate whether the statement is true...

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ch7 True/False Indicate whether the statement is true or false. ____ 1. Although information technology projects have a poor track record in meeting project goals, they have a good track record in meeting budget goals. ____ 2. Preparing cost estimates is a job for accountants. ____ 3. Any new technology or business process is untested and has inherent risks. ____ 4. Many projects that are started never finish because of cost management problems. ____ 5. When justifying investments in new information systems and technology, the focus should only be on reven- ues or expenses. ____ 6. Organizations have a history of spending too much money in the early phases of information technology pro- jects. ____ 7. Project managers must conduct cash flow analysis to determine net present value. ____ 8. Direct costs cannot be directly attributed to a certain project. ____ 9. When deciding what projects to invest in or continue, you should include sunk costs. ____ 10. Learning curve theory does not apply to the amount of time it takes to complete some tasks. ____ 11. If a project manager gets sick for two weeks or an important supplier goes out of business, management re- serve could be set aside to cover the resulting costs. ____ 12. ROM estimates can be referred to as a ballpark estimate, a guesstimate, a swag, or a broad gauge. ____ 13. A definitive estimate should be the least accurate of the three types of estimates. ____ 14. Estimates are usually done at various stages of a project and should become more accurate as time progresses. ____ 15. The cost management plan is part of the overall project management plan. ____ 16. A large percentage of total project costs are often labor costs. ____ 17. Parametric models are least reliable when historical information was used to create the model. ____ 18. When developing an estimate for a large software project, estimates cannot be made before clear system re- quirements have been produced. ____ 19. The people who develop software cost estimates often have a great deal of experience with cost estimation. ____ 20. Every cost estimate is unique. ____ 21. The WBS is not a required input when developing a cost estimate. ____ 22. Most organizations have a well-established process for preparing budgets. ____ 23. Cost budgeting provides information for project funding requirements. ____ 24. There does not need to be a change control system to define procedures for changing the cost baseline. ____ 25. The formulas for variances and indexes start with EV, the earned value. ____ 26. If cost variance is a positive number, it means that performing the work cost more than planned.
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____ 27. If the cost performance index is less than one or less than 100 percent, the project is under budget. ____ 28.
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This note was uploaded on 11/10/2010 for the course MBA MBA taught by Professor Mba during the Spring '10 term at Andrew Jackson.

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ch7 - ch7 True/False Indicate whether the statement is true...

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