Project Cost Estimation and Budgeting Quiz

What is the primary focus of project cost management?

• To reduce project quality

• To enhance team performance

• To manage project costs

• To increase project duration

Which of the following is NOT a component of project cost management?

• Quality assurance

• Budgeting

• Cost estimation

• Cost control

What does 'top down' estimation involve?

• Estimating costs using team input

• Estimating costs based on historical data

• Estimating overall project costs

• Estimating costs for smaller work packages

What is the purpose of budgeting in project management?

• To identify resources and schedule

• To increase project costs

• To reduce project scope

• To eliminate risks

Which of the following is a cause of cost overruns?

• Accurate information

• Stable design

• Economic factors

• Fixed contracts

What type of contract guarantees a fixed price for the project?

• Time and materials contract

• Reimbursable contract

• Cost-plus contract

• Fixed-price contract

What is included in direct labor costs?

• Professional labor

• Administrative expenses

• Subcontractor fees

• Overhead costs

Which of the following is an example of indirect labor costs?

• Consultant fees

• Salaries of project managers

• Office rent

• Material costs

How are overhead costs typically calculated?

• As a percentage of direct labor costs

• As a fixed amount

• As a flat fee per project

• Based on project duration

What does the term 'profit' refer to in project management?

• Total project costs

• Remaining amount after costs are paid

• Initial project budget

• Total expenses incurred