Mod 5 Unit 4

Developing the project budget involves:

• Estimating costs and setting a budget

• Hiring project staff

• Designing the project logo

• Marketing the project

Explain the relationship between cost and time in project management as described in the passage.

• Cost and time are directly proportional in project management.

• Cost and time are inversely proportional in project management.

• Cost and time have no relationship in project management.

• Cost and time are unrelated factors in project management.

What are 'rough costs' and why are they necessary at the proposal phase of a project?

• 'Rough costs' are detailed financial plans necessary for project execution.

• 'Rough costs' are preliminary estimates necessary for project planning.

• 'Rough costs' are final budgets necessary for project approval.

• 'Rough costs' are unnecessary at the proposal phase of a project.

The bottom-up estimation method is significant in project management because it:

• provides a detailed and accurate estimate by aggregating smaller tasks.

• focuses on the overall project scope without detailing individual tasks.

• relies on historical data to predict future project costs.

• uses expert judgment to estimate project timelines.

Explain the use of top-down methods in the defining phase of a project as described in the passage.

• Top-down methods help in breaking down the project into smaller, manageable parts.

• Top-down methods are used to increase the budget of the project.

• Top-down methods are used to delay the project timeline.

• Top-down methods are used to reduce the quality of the project.

The apportion method is used for what purpose in project management?

• Estimating project costs

• Scheduling project tasks

• Managing project risks

• Allocating project resources

How much of the $500,000 estimate is allocated to programming using the apportion method?

• $100,000

• $150,000

• $200,000

• $250,000

Explain the bottom-up estimating method as described in the text. Include its purpose and process.

• The bottom-up estimating method involves breaking down a project into smaller components and estimating the cost of each component to determine the total project cost.

• The bottom-up estimating method is a top-down approach where the total project cost is estimated first and then divided among different components.

• The bottom-up estimating method uses historical data to predict future project costs without breaking down the project into smaller components.

• The bottom-up estimating method is a qualitative approach focusing on expert judgment rather than quantitative analysis.

Cost management in project management is important because it:

• ensures that a project is completed within budget.

• focuses on the quality of the project outcome.

• prioritizes the project schedule over budget.

• eliminates the need for project planning.

A baseline budget is important in project management because it:

• provides a reference point for measuring project performance

• is used to allocate resources to different project tasks

• helps in identifying potential risks in the project

• ensures that the project is completed on time