Project Planning: Putting It All Together Week 3 Quiz Answer

Project Planning: Putting It All Together

Week 3 Quiz Answer

Weekly Challenge 3

Question 1)

When creating a budget, a project manager must do which of the following? Select all that apply.

Budget for surprise expenses
Approve budget increases
Review and reforecast throughout the project
Understand stakeholder needs

Question 2)

As a project manager creating a budget, you’re thinking about all the parts of a project from beginning to end—making a list of every material, resource, and contract worker. What do you call this type of budgeting?

Buffers and reserves
Top-down approach
Contingency
Bottom-up approach

Question 3)

Which scenario is an example of proactive budget management?

While planning your project budget, you gather historical data and consult with industry experts. You consider fixed costs, add relevant line items, and set aside a 5% reserve for unexpected costs.

You’re reviewing your budget and realize that it took much longer than you anticipated for a subject matter expert to complete a task. The labor cost associated with this task is now well over budget. You must now request a budget increase to cover the cost of the labor.

While planning your project budget, you decide that you don’t need to add buffers for unexpected costs. Since you’ve completed several projects like this one in the past and have always come in under budget, you feel you don’t need to plan for any extra cost.

During your project, the market experiences a shortage of a resource that’s crucial for your project’s success. Because of the shortage, the price of this resource increases. This is something you did not expect, nor plan for, and must now figure out how you can afford to complete your project.

Question 4)

Which of the following are steps in the procurement process? Select all that apply.

Analyzing
Contract writing
Controlling
Initiating

Question 5)

Which section of the statement of work (SoW) includes details about what the service entails and may include major project activities?

Purpose
Scope
Target audience
Schedule overview

Question 6)

“Honesty, responsibility, respect, and fairness are the values . . .” begins what type of saying of the Project Management Institute that serves as a guide to how they do procurement and other business?

slogan
requirements
code of ethics
motto

Question 7)

To create a well-organized budget, a project manager includes different types of expenses. Which type of budget expense includes costs for day-to-day tasks within a company?

Operating expenses (OPEX)
Fixed expenses
Reserve expenses
Capital expenses (CAPEX)

Question 8)

At what phase in the procurement process would a project manager review a vendor’s performance and determine if they are meeting milestones?

Controlling
Investigating
Completing
Selecting

Question 9)

Which of the following accurately describes total cost of ownership (TCO)?

TCO only factors in upfront expenses associated with a product or service.
TCO is the dollar amount used to measure if a project is on track or not.
TCO factors in expenses associated with a product or service over its lifetime.
TCO is the additional room in the budget for unexpected costs.

Question 10)

Which of the following statements is typically true regarding budgeting?

It’s recommended to go either over or under budget.
It’s important to not go under budget, but it’s recommended to go over budget.
It’s important to not go over budget, but it’s recommended to go under budget.
It’s important to not go over or under budget.

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Extra Questions

Question 11)

Which scenario is an example of planned cost versus actual cost?

When planning your project budget, you notice that you need to advertise several job positions. The cost to post the job descriptions to several online job boards is $300.

When planning your project budget, you need to factor in unexpected costs that may occur. You decide to reserve 5% of your overall budget as a buffer.

When planning your project budget, you document the planned cost of labor. To do this, you use the estimated number of hours your team needs to complete the project. As your project progresses, you document the total hours your team works to determine the total cost of labor for your project. This number may be different from your original cost of labor.

When planning your project budget, you gather historical data on costs of materials, resources, and labor to determine how much each will cost. Once you begin procuring these items, you don’t update the actual cost.

Question 12)

As a project manager creating a budget, you proactively identify factors that may impact expenses. You then take action to minimize the budgetary impact of these factors. What is this task called?

Baselining the budget
Estimating cost
Cost control
Bottom-up approach

Question 13)

As a project manager, you research and source for a specific service. You then have to manage that relationship. This is known as what type of procurement?

Performance management
Cost management
Budget management
Vendor management

Question 14)

A document that keeps confidential information within the organization is known as what?

Statement of work (SoW)
Scope of work (SoW)
Non-disclosure agreement (NDA)
Request for proposal (RFP)

Question 15)

To create a well-organized budget, a project manager includes different types of expenditures. Which type of budget expense creates a future benefit for a company?

Capital expenses (CAPEX)
Indirect expenses
Operating expenses (OPEX)
Historical expenses

Question 16)

At what phase in the procurement process would a project manager define project resources and make the case for obtaining them?

Completing
Selecting
Controlling
Initiating

Question 17)

Which of the following factors can lead to scope creep and negatively affect the budget? Select all that apply.

A vague Statement of Work (SoW)

Last-minute asks from priority stakeholders

Agreements about the project that aren’t officially documented

Attainable timeframes and deadlines

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Project Planning: Putting It All Together Week 3 Quiz Answer