quiz 10
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School
Mount Royal University *
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Course
3269
Subject
Industrial Engineering
Date
Apr 3, 2024
Type
docx
Pages
8
Uploaded by EarlDangerRedPanda35
core for this quiz: 35 out of 35
Submitted Mar 23 at 11:15pm
This attempt took 28 minutes.
Question 1
5 / 5 pts
Describe several sources of uncertainty in estimating the cost of a project as well as strategies you can employ to address uncertainty.
Your Answer:
Sources that lead to uncertainty in cost estimation of a project are several for example: Lack of information available to PM, changes of prices overtime, government policy changes, and availability of recourses. Those uncertainties can be divided into four categories: Known Knowns where a contingency reserve can be used to address it
Unknown Unknowns that can be addressed by management reserve.
Known Unknowns which a mitigation plan will help navigate it.
Unknown Knowns which are hard to work around and are inevitable. PM can adapt to changes as they occur. Question 2
2 / 2 pts
Activity based costing allocates overhead (indirect costs) to fixed costs based upon four different types of
drivers. Which of the following is one of the cost drivers that serves as a basis of cost allocation?
Correct!
number of units produced
Correct
quantity of materials used
direct equipment costs
number of labor hours
Question 3
2 / 2 pts
Which estimating technique uses a statistical relationship to calculate cost or duration based on historical data and other project parameters?
analogous estimating
empirical estimating
grass roots estimating
Correct!
parametric estimating
Correct
Question 4
2 / 2 pts
The cost management plan provides guidelines to the project manager and other stakeholders and serves all of the following purposes EXCEPT:
It helps all project stakeholders focus appropriately on schedule and cost performance.
It shows how to develop and share relevant, accurate and timely information on cost that the project manager, sponsor and other stakeholders can use to make intelligent and ethical decisions.
Correct!
It documents how the project statement of work and business case should be created.
Correct
It provides feedback, thereby showing how the project's success is linked to the business objectives for which it was undertaken.
Question 5
2 / 2 pts
The documentation of a project cost estimate generally requires substantial supporting detail to include all of these EXCEPT:
a description of scope.
the estimating methods and a range of possible outcomes.
assumptions and constraints.
Correct!
management reserve needs
Correct
Question 6
2 / 2 pts
The process of developing an approximation of monetary resources needed to complete project activities is known as:
determine budget.
estimate resources.
estimate activities.
Correct!
estimate cost.
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