All-In-One Project+ PK0-005 Exam Guide - Chapter 05

You are the project manager for your organization.

Management has asked that you create a detailed cost estimate for a new solution they'd like you to implement.
What type of project estimating must account for every expense within a project before the work begins?

• Bottom-up estimating

• Top-down estimating

• Zero-based budgeting

• Parametric estimating

Answer explanation

Bottom-up estimating requires the project manager to account for all expenses within the project to arrive at a grand total for the project

You are the project manager of the JHN Project.

You have estimated the project will cost $129 for each unit installed.

There are 1,200 units on this project.

What type of estimate is this?

• Bottom-up

• Top-down

• Analogous

• Parametric

Answer explanation

This is an example of a parametric estimate.

The units will cost $129 each; this is the parameter.

As there are 1,200 units on the project, the estimate is calculated by multiplying the parameter of $129 by the total number of units needed, 1,200, for an estimate of $154,800

Harry is the project manager for his organization.

Midori, his manager, has asked that Harry create a bottom-up cost estimate for a new project.

What is bottom-up cost estimating?

• 1. Using last year's budget plus 20 percent to equal the current year's budget

• Using this year's budget with a 20 percent plus or minus shift in the bottom line

• The process of working toward a zero balance as the bottom line in a budget

• 1. The process of creating a detailed estimate for each work package in a WBS

Answer explanation

1. Bottom-up estimating is a process that requires the project manager to create a detailed estimate for each work package in the WBS.

3. Every work package can be cost estimated, and it's the sum of the work packages cost estimates that help determine the bottom-up estimate.

You are the project manager for your organization.

Your current project is similar to a project you finished recently for your organization.

You decide to base the current project cost estimate on the previous project.

What type of cost estimating are you using in this instance?

• Analogous

• Parametric

• Definitive

• 1. Rough order of magnitude

Answer explanation

This is an example of analogous estimating.

By creating an analogy berween the current project and the previous project, the project manager can predict curtent costs.

To use an analogous estimate, you must have accurate historical information.

What should a project manager do to predict the total cost of an IT implementation project accurately?

• List all of the expenses and add them up using best- and worst-case scenarios
  for each expense

• 1. List all of the expenses, including labor, and add them up using an average-case scenario for each expense.

• Divide the project into phases and assign a dollar amount to each phase.

• Divide the project into phases and estimate a dollar amount for each milestone within a phase.

Answer explanation

The project manager should not create one grand total for a project.

In order for the project manager to se a true picture of thae work, they should segment the project into phases and assign each phase a dollar amount based on the work to be completed within it.

What is a fully burdened workload?

• It is when an employee has reached their maximum number of hours allotted for any given project

• It is when a consultant has reached their maximum number of hours allotted for billable time for a project or task within the project.

• It is the prediction of the number of hours required by staff to complete each phase of the project.

• It is the record of the number of hours required by staff to complete each phase of the project.

Answer explanation

1. A fully burdened workload is the prediction of the actual hours required by the team members to complete a given project.

3. This process allows the project manager to predict the financial obligations corresponding to time and create a sense of urgency as to when each task must be completed.

Why should an IT project manager use most likely, optimistic, and pessimistic scenarios when calculating the time required for a task?

• Some staff members will take longer than other staff members to do the same type of work.

• Each staff member will have a dollar amount assigned to the work hour.
  The optimistic and pessimistic scenarios can predict which staff member is the most valuable

• The most likely, optimistic, and pessimistic scenarios allow an IT project manager to predict the average time expense required to complete a task.

• The most likely, optimistic, and pessimistic scenarios allow an IT project manager to predict the average amount of labor required to complete a task

Answer explanation

1. Using the most likely, optimistic, and pessimistic scenarios allows a project manager to predict the average amount of time the team member requires to complete a task.

3. The project manager uses this value to assign a dollar amount to the work to be completed.

Reynaldo is the project manager for his organization and is completing a project for a customer.

He and his project team have completed the project scope, and they could turn the project deliverables over to the customer

and close the project, but they still have $12,500 in the project budget.

Reynaldo decides to add some features to the software that would make the software better and to consume the remaining budget.

This scenario is an example of which term?

• Scope creep

• Value-added change control

• Configuration management

• Gold plating

Answer explanation

This is an example of gold plating.

Gold plating happens when the project manager or team adds deliverables that were not in the project scope in an effort to consume all of the project budget.

You are the project manager for your organization, and you'll need to procure servers and workstations from the vendor.

Youd also like the vendor to install the operating system on each of the workstations based on an image you've created.

in your procurement process, you've specified that the vendor must provide a fixed quote for the work.

What is a primary adwantage of an IT project manager requiring a vendor to deliver a fixed quote?

• It locks the vendor into the project.

• It prevents the vendor from adding features to the implementation.

• It allows the project manager to use the quote for up to one year.

• It allows the projear manager to incorporate the quote into a proposed budget

Answer explanation

A fixed quote allows the project manager to use that dollar amount in a budget to predict the funds required to complete a project.

It can also be used to determine which vendor will actually be awarded the job based on the price and hours to complete the work.

You are the project manager of an adaptive project.

Your customer has requested several changes to the product backlog that they say are of top priority.

You and the product manager agree and the product backlog is adjusted accordingly.

Now, however, the project has insufficient funds to do all of the requirements in the product backlog.

What should you do next?

• Refuse the changes to the product backlog that are causing the funds to be depleted

• Ask the customer for additional funds

• Submit a change request for additional labor to work on the new project requirements

• Nothing. The most valuable items are completed first

Answer explanation

1. The product backlog is always prioritized so that the items with the most importance and the most business value are completed first in the project.
   

2. Requirements that are of less value shift downward in the product backlog and may fall out of the possibilities for completion.

4. These additional items may be moved into a new project, such as a future release.