MGO 634 F20 Quiz 8 of 10 Fall 2015

Name: __________________________ __________________ Grade: _____/ 15

(PRINT): Last First
Please answer each of the following 15 multiple choice questions by selecting the best answer, from
among other possible “good” answers, by CIRCLING the letter next to it.

Chapter 7: Budgeting and Cost Estimation

1. The pattern of deviations in cost and usage used for exception reporting to management is
called __________.

a) simulations

b) assumptions

c) variances

d) summaries

Ans: c Section Reference: Glossary

2. __________ budgeting aggregates income and expenditures by project or program, often in

addition to aggregation by organizational unit or activity.

a) Activity based

b) Capital

c) Operational

d) Project

Ans: d Section Reference: Glossary

3. __________ costs vary with output.

a) General and administrative

b) Overhead

c) Direct

d) Indirect

Ans: c Section Reference: Glossary

1
MGO 634 F20 Quiz 8 of 10 Fall 2015

4. ___________ costs are not associated with any specific product or class of products and are
typically charged as a fixed percentage of some direct cost.

a) General and administrative

b) Overhead

c) Direct

d) Indirect

Ans: b Section Reference: Glossary

5. Unless the project manager is familiar with the firm’s __________ it will be very difficult to
exercise budget control.

a) accounting system

b) budget plans

c) marketing procedures

d) cost accounting

Ans: a Section Reference: 7.1 Estimating Project Budgets

6. The __________ form of budgeting has the advantage of using individuals closer to the work
to provide estimates of resource requirements.

a) top-down budgeting

b) work element costing

c) bottom-up budgeting

d) iterative budgeting

Ans: c Section Reference: 7.1 Estimating Project Budgets

7. The budget process generally begins when the top management invites each division to
submit a__________ for the upcoming year.

a) budget request

b) predictive budget

c) budget estimate

d) predictive request

Ans: a Section Reference: 7.1 Estimating Project Budgets

2
MGO 634 F20 Quiz 8 of 10 Fall 2015

8. Each time the output doubles, the worker hours per unit decrease to a fixed percentage of
their previous value. That percentage is called the __________ rate.

a) inflation

b) hurdle

c) interest

d) learning

Ans: d Section Reference: Improving the Process of Cost Estimation

Chapter 8: Scheduling
9. In the AOA network, circles depict ________.

a) networks

b) events

c) logical dependencies

d) dummy activities

Ans: b Section Reference: 8.2 Network Techniques: PERT and CPM

10. The authors recommend preparing a schedule for each __________.

a) work package in the WBS

b) task in the WBS

c) major task level in the WBS

d) project that has a WBS

Ans: c Section Reference: 8.1 Background

11. Most commercially available project management software applications use the
__________.

a) GERT chart

b) Bar chart

c) AOA network

d) AON network

Ans: d Section Reference: 8.2 Network Techniques: PERT and CPM

12. Task F has duration of 10 days and an earliest start date of 20 days. Based on the given

3
MGO 634 F20 Quiz 8 of 10 Fall 2015

data, determine the early finish duration for task F.

a) 10 days

b) 20 days

c) 30 days

d) 5 days

Ans: c Section Reference: 8.2 Network Techniques: PERT and CPM

13. The shortest time in which the entire network can be completed is referred to as the
__________.

a) critical time of the network

b) real duration of the network

c) elapsed time of the network

d) slack time of the network

Ans: a Section Reference: 8.2 Network Techniques: PERT and CPM

14. A precedence relationship where the completion of a successor activity depends on the
completion of a predecessor activity is called a __________.

a) start to finish dependency

b) finish to start dependency

c) finish to finish dependency

d) start to start dependency

Ans: c Section Reference: 8.2 Network Techniques: PERT and CPM

15. Slack is also known as __________.

a) critical path

b) scope

c) float

d) precedence

Ans: c Section Reference: 8.2 Network Techniques: PERT and CPM

4
MGO 634 F20 Quiz 8 of 10 Fall 2015

BONUS QUESTIONS:

CORRECT BONUS QUESTION ANSWER SCORES ARE ADDED TO ABOVE TOTAL QUIZ
GRADE; QUIZ GRADE NOT TO EXCEED 15/15.

B1. The use of PERT has declined sharply in recent years because a large majority of project
management software __________.

a) have become obsolete

b) use probabilistic techniques

c) generate CPM networks

d) are characterized by high prices

Ans: c Section Reference: 8.2 Network Techniques: PERT and CPM

B2. A precedent relationship where the completion of a predecessor activity depends on the
initiation of a successor activity is called a __________.

a) start to finish dependency

b) finish to start dependency

c) finish to finish dependency

d) start to start dependency

Ans: a Section Reference: 8.2 Network Techniques: PERT and CPM