quiz - Ch7 - establish a baseline for measuring...

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Chapter 7 – quiz and discussion questions Project Cost Management 1. T/F _ F ___When deciding what projects to invest in or continue, you should include sunk costs. 2. T/F ____When justifying investments in new information systems and technology, the focus should just be on revenues or expenses. 3. What are the elements that should be focused on? 4. T/F __ F __Learning curve theory does not apply to the amount of time it takes to complete some tasks. 5. What is the definition of learning curve theory? Learning curve theory states that when many items are produced repetitively, the unit cost of those items decreases in a regular pattern as more units are produced 6. The 2003 CHAOS studies showed that the average cost overrun was __ 43 ___ percent. a. 33 b. 43 c. 53 d. 63 7. __d___ involves developing an approximation or estimate of the costs of the resources needed to complete a project. a. Cost budgeting c. Cost control c. Cost consolidation d. Cost estimating 8. __a___ involves allocating the overall cost estimate to individual work items to
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Unformatted text preview: establish a baseline for measuring performance. a. Cost budgeting b. Cost consolidation c. Cost control d. Cost estimating 9. The main goal of the cost _ budgeting ____ process is to produce a cost baseline for measuring project performance and project funding requirements. a. budgeting b. consolidation c. control d. estimating What are tangible, intangible, direct and indirect costs? Give examples. Tangible costs or benefits are those costs or benefits that an organization can easily measure in dollars. Intangible costs or benefits are costs or benefits that are difficult to measure in monetary terms Direct costs are costs that can be directly related to producing the products and services of the project. Indirect costs are costs that are not directly related to the products or services of the project, but are indirectly related to performing the project...
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quiz - Ch7 - establish a baseline for measuring...

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