B Overhead rates.

　　C Contracts and administration costing system.

　　D Fringe benefits packages.

　　E None of the above.

　　ans:B

　　2 Management reserves are normally defined as a % of the total budget. As a project progresses, the project manager wants the $ value of management reserve to _____, whereas the customer wants the management reserve to _____.

　　A Increase, increase.

　　B Increase, decrease.

　　C Decrease, decrease.

　　D Decrease, increase.

　　E Remain the same, return to customer.

　　ans:E

　　3 The most effective means of determining the cost of a project is to price out the _____.

　　A Work breakdown structure.

　　B Linear responsibility chart.

　　C Project charter.

　　D Scope statement.

　　E Management plan.

　　ans:A

　　4 The most expensive phase of life cycle costing is:

　　A R & D.

　　B Applied research.

　　C Production

　　D Operations and support.

　　E Termination.

　　ans:D

　　5 A _____ estimate prepared from layouts, sketches and flowsheets, should be accurate within （-10, +25%）。

　　A Parametric

　　B Definitive.

　　C Budget

　　D Bottom up.

　　E Top down.

　　ans:C

　　6 The most precise or accurate estimate for determining project costs is the _____ estimate.

　　A Definitive.

　　B Analogy

　　C Budget

　　D Modified standards.

　　E Rule of thumb.

　　ans:A

　　7 Statistical cost estimating techniques （based upon history）， are called _____ estimates and are a _____ approach.

　　A Definitive, bottom up.

　　B Analogy, top down.

　　C Parametric, bottom up.

　　D Parametric, top down.

　　E Analogy, bottom up.

　　ans:D

　　8 A（n） _____ system is designed to ensure the timely availability of nonhuman resources, and includes the cost in procurement, shipping/freight, storage and loss.

　　A Inventory control.

　　B Materials management.

　　C Procurement.

　　D All of the above.

　　E A and C only.

　　ans:B

　　9 There are two major types of reserves used on projects. The _____ is for （usually major） scope changes that were not considered as part of the original plan, whereas the _____ is to compensate for minor changes in estimating, escalation factors.

　　A Management reserve, unplanned allowance fund.

　　B Management reserve, contingency.

　　C Contingency fund, management reserve.

　　D Unplanned allowance fund, budgetary reserve.

　　E Unplanned reserve, planned reserve.

　　ans:C

　　10 Project cash reserves are often used for adjustment in escalation factors which may be beyond the control of the project manager. Other than possibly financing （interest） costs and taxes, the three most common escalation factors involve changes in:

　　A Overhead rates, labor rates and material costs.

　　B Overhead rates, schedule slippages, and rework.

　　C Rework, cost-of-living adjustments, and overtime.

　　D Material costs, shipping cost, and scope changes.

　　E Labor rates, material costs, and cost reporting.

　　ans:A

　　11 The three most common types of project cost estimates are:

　　A Order of magnitude, parametric, and budget.

　　B Parametric, definitive and top down.

　　C Order of magnitude, definitive and bottom up.

　　D Order of magnitude, budget and definitive.

　　E Analogy, parametric and top down.

　　ans:D

　　12 The work breakdown structure, the work packages, and the company's accounting system are tied together through the:

　　A Code of accounts.

　　B Overhead rates.

　　C Budgeting system.

　　D Capital budgeting process.

　　E All of the above.

　　ans:A

　　13 The profitability and technical data studies are provided in report format to owners and funders for acceptance. This type of report, used to solicit funding, is referred to as a（n） _____.

　　A Project feasibility study.

　　B Economic evaluation analysis.

　　C Risk management manual.

　　D Prospectus.

　　E None of the above

　　ans:D

　　14 The technique most commonly used to determine the profitability of a project includes _____ methods.

　　A Net present value （NPV）。

　　B Return on investment （ROI）。

　　C Discounted cash flow （DCF）

　　D Payout time and risk sensitivity analysis.

　　E All of the above.

　　ans:E

　　15 Methods and techniques used to examine cost and technical data are called feasibility studies. The economic aspects of a feasibility study include interest rates, present worth factors, operating costs, depreciation and _____.

　　A Capitalization costs.

　　B Technical skill requirements.

　　C Technology forecasting.

　　D Strategic marketing intelligence.

　　E All of the above.

　　ans:A

　　16 Cost management includes:

　　A Cost estimating/forecasting.

　　B Cost budgeting/cost control.

　　C Cost applications.

　　D All of the above.

　　E A and B only.

　　ans:D

　　17 A variance envelope has been established on a project. The envelope goes from +-30% in R&D to +-5% during manufacturing. The reason for the change in thickness of the envelope is because:

　　A The management reserve has been used up.

　　B The accuracy of the estimates in manufacturing are worse than the estimates in R & D.

　　C Tighter controls are always needed as a project begins to wind down.

　　D Of the personal desires of the project sponsor.

　　E Of none of the above

　　ans:E

　　18 Which of the following would most likely increase the accuracy of estimating the project cost?

　　A Pricing out the work at lower levels in the work breakdown structure.

　　B Using historical data.

　　C Talking to people who have worked on similar projects.

　　D All of the above.

　　E A and C only.

　　ans:D

　　19 Life cycle costing is the total cost to the customer for the acquisition and ownership over its full life. Life cycle costing categories include the cost of _____, _____, and _____.

　　A R & D, maintainability, operation and support.

　　B R & D, production, operation and support.

　　C Acquisition, operations, maintenance.

　　D Production, operations, maintenance.

　　E None of the above

　　ans:B

　　20 Quality management deals with all of the following except:

　　A conformance to requirements/specifications

　　B satisfying the needs of the customer

　　C making products more desirable and luxurious

　　D A and C.

　　E B and C

　　ans:C