MCQ Questions
Q.1.
Overrun is the additional percentage amount by which estimates exceed actual costs.
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    True
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    False
Q.2.
IT project managers must be able to present and discuss project information both in financial and technical terms.
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    True
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    False
Q.3.
Determining the budget involves allocating the project cost estimate to individual work items over time.
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    True
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    False
Q.4.
Parametric models are reliable when the models are flexible in terms of the project's size.
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    True
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    False
Q.5.
Analogous estimates are called activity based costing.
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    True
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    False
Q.6.
If the cost performance index (CPI) is less than 100 percent, the project is under budget.
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    True
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    False
Q.7.
Analogous estimates are the most accurate technique to estimate costs.
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    True
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    False
Q.8.
Budgetary estimates are made even before a project is officially started.
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    True
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    False
Q.9.
A schedule performance index of one means that the project is on schedule.
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    True
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    False
Q.10.
A cost management plan can include organizational procedures links, control thresholds, and process descriptions.
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    True
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    False
Q.11.
Contingency reserves are also known as unknown unknowns.
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    True
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    False
Q.12.
Supporting details for an estimate include the ground rules and assumptions used in creating the estimate.
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    True
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    False
Q.13.
A budgetary estimate is the most accurate of the three types of estimates.
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    True
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    False
Q.14.
In a bottom up estimate, the size of the individual work items is one of the factors that drives the accuracy of the estimates.
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    True
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    False
Q.15.
The primary output of the planning cost management process is a change request.
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    True
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    False
Q.16.
Definitive estimates are made one year or less prior to project completion.
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    True
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    False
Q.17.
Project managers must conduct cash flow analysis to determine net present value.
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    True
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    False
Q.18.
When deciding what projects to invest in or continue, one should include sunk costs.
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    True
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    False
Q.19.
Spreadsheets are a common tool for cost estimating, cost budgeting, and cost control.
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    True
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    False
Q.20.
If cost variance is a positive number, it means that performing the work costs more than planned.
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    True
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    False
Q.21.
A negative schedule variance means that it took lesser than planned to perform the work.
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    True
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    False