What is the main focus of life cycle costing?
The main focus of life cycle costing is to:
1. estimate installation costs
2. consider installation costs when planning the project costs
3. consider operations and maintenance costs in making project decisions
4. estimate the cost of operations and maintenance
Answer 3. consider operations and maintenance costs in making project decisions
What is the cost of choosing one project and giving up another called?
The cost of choosing one project and giving up another is called:
1. sunk cost
2. fixed cost
3. opportunity cost
4. net present value (NPV)
Answer 3. opportunity cost
What is Analogous estimating?
Analogous estimating:
1. uses top-down estimating techniques
2. uses bottom-up estimating techniques
3. is used most frequently during the executing processes of the project
4. uses actual detailed historical costs
Answer 1. uses top-down estimating techniques
If earned value (EV) = 350, actual cost (AC) = 400, planned value (PV) = 325, what is cost variance (CV)?
If earned value (EV) = 350, actual cost (AC) = 400, planned value (PV) = 325, what is cost variance (CV)?
1. 400
2. -50
3. 350
4. -75
Answer 2. -50
Estimate at completion (EAC) is a periodic evaluation of?
Estimate at completion (EAC) is a periodic evaluation of:
1. anticipated total cost at project completion
2. what it will cost to finish the job
3. cost of work completed
4. value of work performed
Answer 1. anticipated total cost at project completion
One common way to compute estimate at completion (EAC) is to take the budget at completion (BAC) and
One common way to compute estimate at completion (EAC) is to take the budget at completion (BAC) and
1. divide by SPI
2. multiply by SPI
3. divide by CPI
4. multiply by CPI
Answer 3. divide by CPI
