Question

IT Project Management:

Chapter 7 Project Cost Management:

1. If the cost estimate will be the basis for contract awards and performance reporting, it should be a ____ and as accurate as possible.

a. budgetary estimate

b. definitive estimate

c. rough order of magnitude estimate

d. final estimate

2. The main outputs of the ____________________ process are activity cost estimates, basis of estimates, and project document updates.

3. It’s important for the team to ____________________ assumptions they made when developing the cost baseline and have several experts review it.

4. ____ are costs that are not directly related to the products or services of the project, but are indirectly related to performing the project.

a. Intangible costs

b. Tangible costs

c. Direct costs

d. Indirect costs

5. When deciding what projects to invest in or continue, you should include sunk costs.

True or False

Answer 1

1)  definitive estimate
2)  cost estimating
3)  document
4)  Indirect costs
5)  False