ISOM Exam 3 || Graded A+.
In many cases, there will be a tradeoff, reducing cost variances will involve a reduction in project
scope or a delay in the project schedule. correct answers True
the key to managing cash flow is to ensure that cash comes in faster than it goes out correct
answers True
The total project cost is often estimated during the ________ phase of the project or when the
project charter or a proposal is prepared correct answers Initiating
it's important that the person estimating the percent complete not only assess how much work has
been performed but also consider correct answers What work remains to be done
historical data can be used as a guide on the current project correct answers True
Calculate the cost variance if the cumulative earned value is $10 and the cumulative actual costs
are $20 correct answers -$10
if the cumulative earned value is $10 and the cumulative actual costs are $20, then the CPI is:
correct answers .05
Cost Performance Index (CPI) is a measure of the cost efficiency with which the project is being
performed. If the cumulative earned value is greater than the cumulative actual costs, then
correct answers the CPI is greater than 1.0
At the beginning of the project, it may not be possible to estimate the costs for all activities with
a level of confidence regarding their accuracy. This is especially true for correct answers Longer-
term projects
it is important to manage the cash flow on a project correct answers True
, consider a project that involves painting five similar houses over 10 weeks (one house every two
weeks) for a total budgeted cost of $20,000. The budget is $4,000 per house. At of the end of
week 5, you determine that $10,000 has actually been spent and three house have been painted
completely. What is the earned value of the project? correct answers $12,000
based on analysis of actual cost it is possible to forecast what the total costs will be at the
completion of the project or work package correct answers True
the key to effective cost control is to analyze cost performance on a regular and timely basis
correct answers true
the worst scenario from the contractor's point of view is to have the customer make only one
payment at the end of the project correct answers true
when the budgets for all the work packages are summed correct answers they cannot exceed the
total project budgeted cost
Historical information from past projects is another source that can be helpful in identifying
possible risks correct answers true
if the risks seem too great, the contractor may decide to not bid on a proposed project correct
answers true
risk identification is determining which risks may adversely affect the development of the project
work breakdown structure and what the impact of each risk might be if it occurs correct answers
false
the project team can progressively elaborate and identify new risks as more information is known
or becomes clear correct answers true
In many cases, there will be a tradeoff, reducing cost variances will involve a reduction in project
scope or a delay in the project schedule. correct answers True
the key to managing cash flow is to ensure that cash comes in faster than it goes out correct
answers True
The total project cost is often estimated during the ________ phase of the project or when the
project charter or a proposal is prepared correct answers Initiating
it's important that the person estimating the percent complete not only assess how much work has
been performed but also consider correct answers What work remains to be done
historical data can be used as a guide on the current project correct answers True
Calculate the cost variance if the cumulative earned value is $10 and the cumulative actual costs
are $20 correct answers -$10
if the cumulative earned value is $10 and the cumulative actual costs are $20, then the CPI is:
correct answers .05
Cost Performance Index (CPI) is a measure of the cost efficiency with which the project is being
performed. If the cumulative earned value is greater than the cumulative actual costs, then
correct answers the CPI is greater than 1.0
At the beginning of the project, it may not be possible to estimate the costs for all activities with
a level of confidence regarding their accuracy. This is especially true for correct answers Longer-
term projects
it is important to manage the cash flow on a project correct answers True
, consider a project that involves painting five similar houses over 10 weeks (one house every two
weeks) for a total budgeted cost of $20,000. The budget is $4,000 per house. At of the end of
week 5, you determine that $10,000 has actually been spent and three house have been painted
completely. What is the earned value of the project? correct answers $12,000
based on analysis of actual cost it is possible to forecast what the total costs will be at the
completion of the project or work package correct answers True
the key to effective cost control is to analyze cost performance on a regular and timely basis
correct answers true
the worst scenario from the contractor's point of view is to have the customer make only one
payment at the end of the project correct answers true
when the budgets for all the work packages are summed correct answers they cannot exceed the
total project budgeted cost
Historical information from past projects is another source that can be helpful in identifying
possible risks correct answers true
if the risks seem too great, the contractor may decide to not bid on a proposed project correct
answers true
risk identification is determining which risks may adversely affect the development of the project
work breakdown structure and what the impact of each risk might be if it occurs correct answers
false
the project team can progressively elaborate and identify new risks as more information is known
or becomes clear correct answers true
