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100
Direct costs are those clearly assigned to the aspect of the project that generated the cost.
What is True
100
) __________ is typically added to the project's budget following the identification of all project costs; that is, the project does not include __________ as part of the activity-based costing process.
What is Contingency money (funds), contingency
100
Which worker's wages would constitute a direct cost for a construction project? A) the project's cost accountant B) the brick mason C) the architect's assistant D) the foreman's
What is B,the brick mason.
100
Which of these is typically a recurring cost? A) preliminary market analysis B) personnel training C) outplacement services D) logistics
What is D,logistics
100
__________ cost estimates can only be given upon the completion of most of the design work at a point when the scope and capabilities of the project are well-understood.
What is Definitive
200
Employing an overhead multiplier is sometimes referred to as the __________ rate for direct labor costs.
What is fully-loaded
200
There is a tendency for different departments or functions to compete for scarce resources in a zero-sum game when bottom-up budgeting is used to develop a project budget.
What is False.
200
The unofficial rule of thumb for __________ estimates is to aim for an accuracy of plus or minus 30%.
What is ballpark or order of magnitude
200
A learning rate of 90% means that for every doubling of output, the time required by the activity falls by 10%.
What is False
200
Activity-based costing and bottom-up budgeting share the step of: A) identifying cost drivers associated with each activity. B) identifying activities that consumer resources and assigning costs to them. C) assigning costs to projects by multiplying the cost driver rate times the volume of units. D) tending to overestimate project costs due to the lack of involvement by top management
What is B,identifying activities that consumer resources and assigning costs to them.
300
__________ costs might be those associated with charges applied once at the beginning or end of a project.
What is Nonrecurring
300
A time-phased budget allocates costs across both project activities and the anticipated time in which the budget is to be expended.
What is True
300
Which of these indirect costs is typically classified as a selling or administrative cost? A) secretarial support B) utilities C) insurance D) depreciation
What is A, secretarial support
300
) Which of the following is NOT contained in a typical time-phased budget? A) total expenses for each activity B) total expenses for each time unit C) cumulative expenses for each time unit D) cumulative time for each expense
What is D,cumulative time for each expense
300
A budget contingency of $1 million on a $10 million project means that the project will be planned for a cost of $10 million, but the project organization receives an extra $1 million to guard against unforeseen cost overruns.
What is False
400
Which of the following is a direct cost? A) labor B) rent C) depreciation on equipment D) health benefits
What is A, labor.
400
Unplanned costs incurred when steps are taken to speed up the project's completion are __________.
What is expedited costs
400
A systems analyst is paid at the rate of $50/hour and will be needed for 40 hours. Her employer uses an overhead multiplier of 60% and does not factor in personal time. Her total direct labor cost that should be billed at: A) $2,000. B) $3,200. C) $1,250. D) $4,500.
What is B,$3,200.
400
A budget containing disaggregated figures across the schedule when work is planned is a: A) time-phased budget. B) chronic budget. C) temporal budget. D) calendar budget.
What is A,time-phased budget
400
When properly performed, bottom-up budgeting has the disadvantage of: A) a lack of detail needed in project plans. B) a lack of coordination among project managers and functional department heads. C) being a hindrance to top managers when prioritizing projects that are competing for the same scarce resources. D) a reduction of top management's control of the budget process to one of oversight.
What is D,a reduction of top management's control of the budget process to one of oversight.
500
Three workers complete a full 8-hour day finishing concrete for a terrace. All three workers are paid $12 an hour and the job bills to the customer for $450. What are the total direct labor costs? A) $450 B) $12 C) $288 D) $96
What is C, $288.
500
Which of these indirect costs is typically classified as an overhead cost? A) advertising B) shipping C) sales commissions D) taxes
What is D,taxes.
500
An order of magnitude estimate is usually more accurate than a ballpark estimate.
What is False
500
Cost estimates can be too low if issues outside a firm's control affect the project organization's ability to complete the project. These __________ might include inflation or political instab
What is external factors
500
It took 80 hours of analysis to complete the first phase, but the second phase was done in 74 hours. If this learning rate continues, then the 8th analysis should take a mere: A) 63 hours and 20 minutes, give or take. B) 68 hours and 30 minutes, give or take. C) 57 hours and 15 minutes, give or take. D) 52 hours and 45 minutes, give or take.
What is A,63 hours and 20 minutes, give or take.
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