Introductory Cost Engineering Quiz

What is the definition of cost in project control and accounting?

• The amount measured in money, cash expended or liability incurred, in consideration of goods and/or services received.

• The value of an activity or asset determined by the cost of the resources expended to complete the activity or produce the asset.

• The investment of resources in strategic assets including time, monetary, human, and physical resources.

• The value of the resources used to support an activity or asset, such as facilities, office supplies, and communication costs.

What are the categories of resources used to determine the value of an activity or asset?

• Material, labor, and 'other'

• Money, time, and physical resources

• Facilities, office supplies, and communication costs

• Taxes, maintenance, and security costs

What is the definition of resources in the context of cost management?

• Any investment in strategic assets

• Any real or potential investment in time

• Any investment in human and physical assets

• Any investment in monetary assets

What is the definition of lifecycle in the context of cost management?

• The stages or phases of project progress

• The stages or phases of asset existence

• The complete history of a product

• The length of time over which an investment is analyzed

What is the distinction between product life cycle and project life cycle?

• Product life cycle includes the last two phases of project life cycle

• Product life cycle does not include the last two phases of project life cycle

• Product life cycle is longer than project life cycle

• Product life cycle is shorter than project life cycle

What is the definition of process in the context of cost management?

• A sequence of procedures that consume resources to convert inputs into outputs

• A sequence of procedures that consume time and energy to convert inputs into outputs

• A sequence of procedures that consume money and machines to convert inputs into outputs

• A sequence of procedures that consume data and material to convert inputs into outputs

What is the definition of product in the context of cost management?

• The end result of a process that serves as a need or want satisfier

• The end result of a process that serves as a tangible attribute

• The end result of a process that serves as an intangible attribute

• The end result of a process that serves as a method or idea

What is the definition of a product?

• A commercially distributed good that is tangible personal property

• An output or result of a fabrication, manufacturing, or production process

• Something that passes through a distribution channel before being consumed or used

• All of the above

What is the definition of a co-product?

• A product manufactured along with a different product, in a process in which both are required in the production of another product

• An undesirable product generated in a manufacturing process

• An output other than the principal product(s) of an industrial process

• None of the above

How do owners view costs?

• They consider the cost of construction or process only

• They consider the cost of internal supervision and overhead

• They consider the cost of implementation, furniture, fixtures, and equipment

• All of the above