FREE Project Management MCQ Questions and Answers
A method of cost estimation that involves estimating individual work items and adding them together to arrive at a project total.
Bottom-up estimating is a project management technique for estimating the costs and time of projects and project sections. Bottom-up estimating implies that costs, timeframes, and resource requirements are estimated at a very granular level. This indicates that work bundles are estimated.
Which of the following is not included in the three-sphere system management model?
The three-sphere model doesn't explicitly include "Information" as a separate sphere. However, information is a crucial aspect that permeates all three spheres. Information is generated, processed, and utilized across the business, organizational, and technological dimensions of the system. It's essential for making informed decisions, communicating among stakeholders, and supporting the overall functionality of the system.
What is the term of the component of the authorized total cost estimate that is anticipated to be spent on an activity during a specific period?
The portion of the approved total cost estimate that is planned to be spent on an activity during a given period is called "Planned Value" (PV) in project management and earned value analysis.
Planned Value, also known as "Budgeted Cost of Work Scheduled" (BCWS), represents the planned or budgeted cost of work that was scheduled to be completed up to a specific point in time in a project. It is a component of the earned value management (EVM) framework, which is used to monitor and assess a project's performance.
The procedures that must be followed to ensure that the project is completed on time and on budget.
Is a plan for estimating, allocating, and controlling expenditures for the resources needed to perform all project tasks.
Money that has already been spent.
Any expense that has already been incurred or sunk into a project is referred to as a Sunk Cost. Managers may not want to throw away money that has already been spent and will decide to continue in order to recuperate the money already spent while making decisions. This is a common occurrence in projects that aren't going well.
An estimate of the cost of the actual physical job accomplished.
The quantity of work that is actually done and reported as the value of the performance budget assigned to that job is called Earned Value. Earned Value, also known as the Budgeted Cost of Work Performed (BCWP) in construction, is determined by multiplying the Budget At Completion (BAC) by the Percent of Work Completed.
The sum of money in a cost estimate that is intended to reduce cost risk by accounting for difficult-to-predict future events is known as the _________.
"Reserves" in a cost estimate refer to the dollars included to mitigate cost risk by allowing for future situations that are difficult to predict.
Reserves are additional funds set aside in a cost estimate to account for uncertainties and potential risks that may arise during the course of a project. These uncertainties could include unexpected events, changes in scope, changes in market conditions, or any other factors that could lead to cost overruns. Reserves provide a buffer to cover unforeseen expenses and help ensure that the project remains within budget.
What is the term of the cost estimate that offers a precise estimate of project costs?
In project management, cost estimates are classified into various categories based on their level of accuracy and detail. A Definitive Estimate is the most accurate and detailed type of estimate. It is typically prepared when a project's scope, requirements, and plans are well-defined and stable. A Definitive Estimate is based on comprehensive and detailed data, including specific quantities, specifications, and cost breakdowns.
What is the term of the cost estimate method that involves estimating each individual work item and adding them together to get a project total?
The cost-estimating technique based on estimating individual work items and then summing them to calculate a project's total cost is called "Bottom-Up Estimates."
Bottom-Up Estimates involve breaking down a project into smaller, more manageable components or tasks. Each of these tasks is then individually estimated for its cost. These estimates are then aggregated or rolled up to calculate the overall project cost.
What is the term for earned value less real cost?
In earned value management, Cost Variance (CV) is a performance measurement that helps assess the financial health of a project by comparing the earned value (the value of work that has been completed) with the actual cost incurred for that work.
What does the phrase "ratio of revenues to profits" mean?
The Profit Margin indicates how efficiently a company is managing its expenses and generating profit from its revenue. A higher profit margin indicates that a larger proportion of revenue is being converted into profit, which is generally favorable.
Which of the following statements regarding Process Group is false?
Process Groups are a framework that defines the activities and processes that occur throughout the project lifecycle, Project Phases are specific stages that define the major components of the project's progression. A project may consist of multiple phases, and each phase may span one or more Process Groups. For example, the Planning Process Group might cover multiple phases of a project as planning activities are conducted for each phase.
What phrase is used to describe a framework for the phases of information system development?
Users can use the system-development life cycle to turn a newly designed project into an operating one.
The System Development Life Cycle, or "SDLC," is a multistep, iterative process with a logical framework. This
procedure is used to model or give a framework for technical and non-technical operations in order to provide
a quality system that meets or exceeds a company's expectations or to manage the decision-making process.
The ratio of earned value to planned value, or _________________, can be used to calculate the anticipated time needed to finish a project.
The Schedule Performance Index (SPI) is indeed the ratio of earned value to planned value in project management, and it can be used to estimate the projected time to complete a project.
When an organization obtains goods and/or supplies from a third-party source in another country, what term is used?
Offshoring is the practice of outsourcing work to a different country in order to take advantage of cost savings.
Integration Management is in charge of:
Maintaining equilibrium in all aspects of a project is the goal of project integration management (time, scope, cost, quality, human resource, communication, risk, procurement, stakeholder, among others). These are intertwined procedures that cannot be carried out in isolation.