65 Which of the following is referred to as sunk cost:A. management reserveB. contingency fundC. cost budgeted for construction under waterD. expended funds over which there is no further controlE. forecasted budget over-runs

Which of the following is referred to as sunk cost:

A . management reserve

B . contingency fund

C . cost budgeted for construction under water

D . expended funds over which there is no further control

E . forecasted budget over-runs

Which of the following statements about the cost of quality are true?

A . the cost of quality is the expense of nonconformance to requirements and specifications.

B . the cost of quality are mostly the direct responsibility of workers who are manufacturing the product.

C . quality control programs should be implemented when the cost of quality are deemed affordable by management.

D . A and B.

E . A and C

16 Which of the following statements about the cost of quality are true?

A. the cost of quality is the expense of nonconformance to requirements and specifications.

B. the cost of quality are mostly the direct responsibility of workers who are manufacturing the product. C. quality control programs should be implemented when the cost of quality are deemed affordable by management.

D. A and B.

E. A and C

72 Which of the following is referred to as payback period:

A. the number of periods required to recover the initial investment

B. the rate of return on the investment

C. the number of periods required to bring project cost back to the original budget, based on current performance

D. loan payment schedule

E. None of the above

191 Managerial Reserves are:

A. allowances to account for price changes that can occur over the life of a project.

B. incentive fees paid to managers for good performance.

C. funds used to offset poor cost or schedule estimates.

D. accounts to allocate and maintain funds for contingency programs

E. All of the above

147 Which of the following is referred to as sunk cost:

A. management reserve

B. contingency fund

C. cost budgeted for construction under water

D. expended funds over which there is no further control

E. forecasted budget over-runs

74 When comparing the cost of competing projects, which of the following is typically NOT considered?

A. Opportunity costs.

B. Direct costs.

C. Sunk costs.

D. Indirect costs.

E. Burden rates

96 A negative cost variance and positive schedule variance means:

A. The project is under budget and ahead of schedule

B. The project is over budget and behind schedule

C. The project is over budget and ahead of schedule

D. The project will be overrun but ahead of schedule at completion

●The project budget has been finalized.Additional work has been discovered that was not planned for in the budget or project scope.(74) could provide the fund to cover the newly discovered work item.

(74) A. Contingency reserve

B. Project profit

C. Management reserve

D. Special fund

（ ）is the approved version of the time-phased project budget，excluding any management reserves，which can only be changed through formal change control precedures and is used as a basis for comparison to actual results.

A.The control accounts

B.Funding requirement

C.The cost estimates

D.The cost baseline

Which of the following is considered a direct cost for producing a widget?

A . The cost of the materials used to produce a widget.

B . The labor costs of the workers who actually produced the widget.

C . The rent for the building in which the widget was manufactured

D . The salary of senior management and the project sponsor

E . A and B only

A negative cost variance and positive schedule variance means:

A The project is under budget and ahead of schedule

B The project is over budget and behind schedule

C The project is over budget and ahead of schedule

D The project will be overrun but ahead of schedule at completion

35 Which of the following is considered a direct cost for producing a widget?

A. The cost of the materials used to produce a widget.

B. The labor costs of the workers who actually produced the widget.

C. The rent for the building in which the widget was manufactured

D. The salary of senior management and the project sponsor

E. A and B only

96 Which of the following types of cost are relevant to making financial decisions:

A. sunk cost

B. opportunity cost

C. material cost

D. A and C only

E. B and C only

198 Sunk costs are:

A. future costs held in reserve.

B. costs invested in commodities.

C. expended costs over which we have no control.

D. expended costs over which we have no more control

E. tax credits

98 Which of the following statements about the cost of quality are true?

A. the cost of quality is the expense of nonconformance to requirements and specifications.

B. the cost of quality are mostly the direct responsibility of workers who are manufacturing the product.

C. quality control programs should be implemented when the cost of quality are deemed affordable by management.

D. A and B.

E. A and C

A.This process assigns cost estimates to project activities including risks and contingency plans.

B.The cost baseline will be used to measure variances and future project performance.

C.This process assigns cost estimates for expected future period operating costs.

D.The cost baseline is the expected cost for the project.

143 In which of the following scope management processes is the scope management plan prepared?

A. Initiation

B. Scope planning

C. Scope Definition

D. Scope change control

E. Scope verification

A. Higher data integrity

B. Lower cost of implementation

C. Higher redundancy

D. Increased performance