Question 1

Which of the following statements is not true about a firm and its project accounting?

Accepted Answer

A)   each firm has its own rules with regard to the allocation of overhead
B)   most firms must comply with the Sarbanes-Oxley Act
C)   the project manager must rely on the accounting department to make special allowances for his/her project
D)   most firms have their own accounting idiosyncrasies
E)   unexpected charges may suddenly appear when the PM least expects itF) A) and D)
G) B) and E)

Question 2

Project budget is nothing more than the project plan, based on the WBS, expressed in monetary terms.

Accepted Answer

A) True 
 B)False

Question 3

Overhead and indirect charges should not be assigned to a project.

Accepted Answer

A) True 
 B)False

Question 4

What is the Game Theory approach?

Accepted Answer

The Game Theory approach is a framework ...

Question 5

List the steps in performing FMEA.

Accepted Answer

Failure Mode and Effects Analysis (FMEA)...

Question 6

Briefly contrast the three different perspectives cost can be viewed from.

Accepted Answer

The answer of Briefly contrast the three different perspectives cost...

Question 7

Why is it necessary to consider the learning curve of resources on a project?

Accepted Answer

A)   to estimate labor costs properly
B)   to improve project team morale
C)   because it always takes less time to do a task after someone has done it a few times
D)   collective bargaining contracts require it
E)   All of the aboveF) None of the above
G) A) and B)

Question 8

The name given to the budget process that aggregates income and expenditures across projects is:

Accepted Answer

A)   activity-oriented budget
B)   top-down budget
C)   bottom-up budget
D)   program-oriented budget
E)   activity-based costingF) B) and C)
G) A) and E)

Question 9

Scenario analysis is not a popular technique for identifying risks.

Accepted Answer

A) True 
 B)False

Question 10

The first unit requires 10 hours to complete. If the industry uses an 80 percent learning rate, how long should the third unit take?

Accepted Answer

A)   10 hours
B)   9 hours
C)   8 hours
D)   7.02 hours
E)   6.40 hoursF) B) and E)
G) All of the above

Question 11

There is no way other than guessing to estimate the impact of learning on a project's task.

Accepted Answer

A) True 
 B)False

Question 12

A budget is a plan for allocating resources.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not true regarding top-down budgeting?

Accepted Answer

A)   It is based on the collective judgments of top and middle managers.
B)   Overall project costs are estimated by top and middle managers and then passed on to the next lower level.
C)   The overall budget cost is generally not very accurate.
D)   Overlooking small but important tasks can lead to a serious budgetary problem.
E)   All of the above are true concerning top-down budgeting.F) None of the above
G) A) and D)

Question 14

For projects with S-shaped life cycles, top-down budgeting is most likely unacceptable.

Accepted Answer

A) True 
 B)False

Question 15

By very careful planning, a project manager can do away with cost uncertainty.

Accepted Answer

A) True 
 B)False

Question 16

Because project budgeting is for a special case and the organization's budgeting process is for routine work, the project manager need not be familiar with the organization's accounting system.

Accepted Answer

A) True 
 B)False

Question 17

Top-down budgeting typically results in better acceptance of the budget.

Accepted Answer

A) True 
 B)False

Question 18

Budget cuts are usually disastrous to an exponential life-cycle project.

Accepted Answer

A) True 
 B)False

Question 19

Budgeting a project is often more difficult than budgeting routine activities.

Accepted Answer

A) True 
 B)False

Question 20

Learning curve theory states that performance of labor per unit will improve by a fixed percentage each time production doubles.

Accepted Answer

A) True 
 B)False

Exam 4: Budgeting the Project

Scenario analysis is not a popular technique for identifying risks.

Correct AnswerverifiedShow Answer

Learning curve theory states that performance of labor per unit will improve by a fixed percentage each time production doubles.

Correct AnswerverifiedShow Answer

Budget cuts are usually disastrous to an exponential life-cycle project.

Correct AnswerverifiedShow Answer

Overhead and indirect charges should not be assigned to a project.

Correct AnswerverifiedShow Answer

List the steps in performing FMEA.

Correct AnswerAnswered by ExamLex AIFailure Mode and Effects Analysis (FMEA)...View AnswerShow Answer

A budget is a plan for allocating resources.

Correct AnswerverifiedShow Answer

What is the Game Theory approach?

Correct AnswerAnswered by ExamLex AIThe Game Theory approach is a framework ...View AnswerShow Answer

Budgeting a project is often more difficult than budgeting routine activities.

Correct AnswerverifiedShow Answer

Project budget is nothing more than the project plan, based on the WBS, expressed in monetary terms.

Correct AnswerverifiedShow Answer

The name given to the budget process that aggregates income and expenditures across projects is:

Correct AnswerverifiedShow Answer

Briefly contrast the three different perspectives cost can be viewed from.

Correct AnswerverifiedShow Answer

Which of the following is not true regarding top-down budgeting?

Correct AnswerverifiedShow Answer

By very careful planning, a project manager can do away with cost uncertainty.

Correct AnswerverifiedShow Answer

There is no way other than guessing to estimate the impact of learning on a project's task.

Correct AnswerverifiedShow Answer

Which of the following statements is not true about a firm and its project accounting?

Correct AnswerverifiedShow Answer

Top-down budgeting typically results in better acceptance of the budget.

Correct AnswerverifiedShow Answer

For projects with S-shaped life cycles, top-down budgeting is most likely unacceptable.

Correct AnswerverifiedShow Answer

The first unit requires 10 hours to complete. If the industry uses an 80 percent learning rate, how long should the third unit take?

Correct AnswerverifiedShow Answer

Why is it necessary to consider the learning curve of resources on a project?

Correct AnswerverifiedShow Answer

Because project budgeting is for a special case and the organization's budgeting process is for routine work, the project manager need not be familiar with the organization's accounting system.

Correct AnswerverifiedShow Answer

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Answered by ExamLex AI
Failure Mode and Effects Analysis (FMEA)...
View Answer

Correct Answer
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Correct Answer
Answered by ExamLex AI
The Game Theory approach is a framework ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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