Budgeting and Risk Management in Global Project Management

4/27/23, 10:11 PM Mini PMP - Chapter 7 Budgeting and Risk Management : MGMT641102-Global Project Management https://njit.instructure.com/courses/27956/quizzes/88088?module_item_id=1002331 1/18 Mini PMP - Chapter 7 Budgeting and Risk Management Due Mar 4 at 11:59pm Points 45 Questions 45 Available until Mar 4 at 11:59pm Time Limit 60 Minutes This quiz was locked Mar 4 at 11:59pm. Attempt History Attempt Time Score LATEST Attempt 1 60 minutes 22 out of 45 Score for this quiz: 22 out of 45 Submitted Mar 4 at 11:03pm This attempt took 60 minutes. 0 / 1 pts Question 1 The _____ budgeting strategy is based on collecting the judgments and experiences of top and middle managers, and available past data concerning similar activities. top - down ou Answered ou Answered orrect Answers orrect Answers top-down 0 / 1 pts Question 2 Unanswered Unanswered In fields such as construction, costs can often be estimated by _____ the various cost elements appropriately.

4/27/23, 10:11 PM Mini PMP - Chapter 7 Budgeting and Risk Management : MGMT641102-Global Project Management https://njit.instructure.com/courses/27956/quizzes/88088?module_item_id=1002331 2/18 ou Answered ou Answered orrect Answers orrect Answers scaling 1 / 1 pts Question 3 WBS stands for _____. Work breakdown Structure Correct! Correct! orrect Answers orrect Answers work breakdown structure 1 / 1 pts Question 4 The longer the project life, the more the project manager (PM) can trust that traditional methods and costs will be relevant since there will be more time for variations to average out. True False Correct! Correct! 1 / 1 pts Question 5 This type of budgeting allows income and expenditures to be aggregated across projects. Expense-oriented

4/27/23, 10:11 PM Mini PMP - Chapter 7 Budgeting and Risk Management : MGMT641102-Global Project Management https://njit.instructure.com/courses/27956/quizzes/88088?module_item_id=1002331 3/18 Activity-oriented Category-oriented Project-oriented Correct! Correct! 1 / 1 pts Question 6 These are where the defined responses to the risks are detailed, but their amounts are not yet precisely known. Unknown knowns Unknown unknowns Known knowns Known unknowns Correct! Correct! 1 / 1 pts Question 7 A project manager must _____ as a type of risk response planning in order to soften the danger of a threat by reducing the likelihood that it will occur or by reducing its impact if it does occur. mitigate Correct! Correct! orrect Answers orrect Answers mitigate 1 / 1 pts Question 8

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4/27/23, 10:11 PM Mini PMP - Chapter 7 Budgeting and Risk Management : MGMT641102-Global Project Management https://njit.instructure.com/courses/27956/quizzes/88088?module_item_id=1002331 4/18 Creating a permanent listing of identified risks, methods used to mitigate or resolve them, and the results of all risk management activities. Risk response planning Quantitative risk analysis Risk management register Correct! Correct! Risk monitoring and control 1 / 1 pts Question 9 What form of estimating relies on well-known statistical correlations between various factors such as the total cost of a house relative to the square feet of living area?Ê Top-down estimating Parametric estimating Correct! Correct! Statistical equivalence Bottom-up estimating 0 / 1 pts Question 10 In order to develop a budget, we must forecast what resources the project will require. True orrect Answer orrect Answer

4/27/23, 10:11 PM Mini PMP - Chapter 7 Budgeting and Risk Management : MGMT641102-Global Project Management https://njit.instructure.com/courses/27956/quizzes/88088?module_item_id=1002331 5/18 False ou Answered ou Answered 0 / 1 pts Question 11 This law states that adding manpower to a late software project makes it later.Ê The Rule of Thumb ou Answered ou Answered BrooksÕ Law orrect Answer orrect Answer SmithÕs Law MurphyÕs Law 0 / 1 pts Question 12 In the _____ budgeting method, elemental tasks, their schedules, and their individual budgets are constructed, again following the WBS. Top-Down ou Answered ou Answered orrect Answers orrect Answers bottom-up 1 / 1 pts Question 13 G is composed of the cost of senior management, the various staff functions, and any other expenses not included in overhead.

4/27/23, 10:11 PM Mini PMP - Chapter 7 Budgeting and Risk Management : MGMT641102-Global Project Management https://njit.instructure.com/courses/27956/quizzes/88088?module_item_id=1002331 6/18 True Correct! Correct! False 1 / 1 pts Question 14 When a firm has professional cost estimators, what is their main responsibility? Work with senior management to keep costs in line Reduce the level of uncertainty in cost estimates Correct! Correct! Develop costs that maximize profits Coordinate with the client to develop an acceptable cost estimate 1 / 1 pts Question 15 This involves either increasing the probability that the opportunity risk will occur or increasing its impact if it does. Exploit Sharing Accept Enhance Correct! Correct!

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4/27/23, 10:11 PM Mini PMP - Chapter 7 Budgeting and Risk Management : MGMT641102-Global Project Management https://njit.instructure.com/courses/27956/quizzes/88088?module_item_id=1002331 7/18 1 / 1 pts Question 16 The advantage of the_____ budgeting process is that it is generally associated with participative management. bottom-up Correct! Correct! orrect Answers orrect Answers bottom-up 1 / 1 pts Question 17 The risk is taken on, either because no other response is available or because the responses are deemed too costly relative to the risk threat. Accept Correct! Correct! Avoid Transfer Mitigate 0 / 1 pts Question 18 The matter of what overhead costs are to be added and in what amounts is unique to the firm. True orrect Answer orrect Answer False ou Answered ou Answered

4/27/23, 10:11 PM Mini PMP - Chapter 7 Budgeting and Risk Management : MGMT641102-Global Project Management https://njit.instructure.com/courses/27956/quizzes/88088?module_item_id=1002331 8/18 0 / 1 pts Question 19 Developing project budgets is much easier than developing budgets for more permanent organizational activities since a project is a one-time activity. True ou Answered ou Answered False orrect Answer orrect Answer 0 / 1 pts Question 20 _____: Costs incurred by the firm, but not associated with any specific product or class of products; e.g., cost of building and ground maintenance, utilities, cost of plant security, cost of health insurance and pension plans. Typically charged as a fixed percent of some direct cost such as labor.Ê Overhead ou Answered ou Answered orrect Answers orrect Answers Overhead Costs 0 / 1 pts Question 21 Unknown unknowns are not part of the baseline budget and are referred to as what? Contingency reserves

4/27/23, 10:11 PM Mini PMP - Chapter 7 Budgeting and Risk Management : MGMT641102-Global Project Management https://njit.instructure.com/courses/27956/quizzes/88088?module_item_id=1002331 9/18 Buffered reserves PMBOK reserves ou Answered ou Answered Management reserves orrect Answer orrect Answer 1 / 1 pts Question 22 _____ issues are present when bidders Òlow ballÓ a bid or when some bidders get a Òlast look.ÓÊ Ethical Correct! Correct! orrect Answers orrect Answers Ethical 0 / 1 pts Question 23 Unanswered Unanswered _____: These costs vary with output; e.g., labor costs, material costs, and sometimes the cost of capital equipment such as machinery that performs a specific function on each unit of output. ou Answered ou Answered orrect Answers orrect Answers Variable Cost Direct Cost 1 / 1 pts Question 24

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4/27/23, 10:11 PM Mini PMP - Chapter 7 Budgeting and Risk Management : MGMT641102-Global Project Management https://njit.instructure.com/courses/27956/quizzes/88088?module_item_id=1002331 10/18 Determining which risks might affect the project and documenting their characteristics. Risk management planning Risk identification Correct! Correct! Quantitative risk analysis Qualitative risk analysis 0 / 1 pts Question 25 An easy method of evaluating risk in certain situations by modifying project parameters and evaluating the corresponding changes is which of the following? Project budgeting Risk mitigation ou Answered ou Answered Risk analysis Monte Carlo simulations orrect Answer orrect Answer 1 / 1 pts Question 26 _____: A procedure that imitates real life by running thousands of values of distribution parameters to obtain an overall distribution of the outcomes of interest.

4/27/23, 10:11 PM Mini PMP - Chapter 7 Budgeting and Risk Management : MGMT641102-Global Project Management https://njit.instructure.com/courses/27956/quizzes/88088?module_item_id=1002331 11/18 Monte Carlo Simulation Correct! Correct! orrect Answers orrect Answers Monte Carlo Simulation 0 / 1 pts Question 27 Several issues face firms preparing bid proposals, particularly firms in the aerospace, construction, defense, and consulting industries. Which of the following is not one of those issues? Is it ethical? How long will the project take? orrect Answer orrect Answer How should the proposal-preparation process be organized and staffed? How much should be spent on preparing proposals for bids? ou Answered ou Answered 0 / 1 pts Question 28 Many lower-level managers often treat the entire budgeting process as if it were a _____, a situation in which any individualÕs gain is another individualÕs loss. This can make competition among junior managers quite intense. zero-sum gam ou Answered ou Answered orrect Answers orrect Answers zero-sum game

4/27/23, 10:11 PM Mini PMP - Chapter 7 Budgeting and Risk Management : MGMT641102-Global Project Management https://njit.instructure.com/courses/27956/quizzes/88088?module_item_id=1002331 12/18 1 / 1 pts Question 29 Deciding how to approach and plan the risk management activities for a project.Ê Risk identification Qualitative risk analysis Quantitative risk analysis Risk management planning Correct! Correct! 1 / 1 pts Question 30 EMV stands for _____.Ê Expected Monetary Value Correct! Correct! orrect Answers orrect Answers expected monetary value 0 / 1 pts Question 31 _____: A budgeting method that begins with those who will be doing the tasks estimating the resources needed. The advantage is more accurate estimates.Ê Bottom-up ou Answered ou Answered orrect Answers orrect Answers Bottom-Up Budgeting

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4/27/23, 10:11 PM Mini PMP - Chapter 7 Budgeting and Risk Management : MGMT641102-Global Project Management https://njit.instructure.com/courses/27956/quizzes/88088?module_item_id=1002331 13/18 1 / 1 pts Question 32 Identify the statement that is not correct regarding a project budget. The budget is included in a project plan. The budget serves as a basis for comparison of planned and actual usage of resources. The budget is not an expression of organizational policy. Correct! Correct! The budget serves as a control mechanism for the project. 0 / 1 pts Question 33 The advantages of the bottom-up process are those generally associated with participative management. True orrect Answer orrect Answer False ou Answered ou Answered 0 / 1 pts Question 34 _____: A procedure that uses a distribution of input factors and probabilities and returns a range of outcomes and their probabilities.Ê

4/27/23, 10:11 PM Mini PMP - Chapter 7 Budgeting and Risk Management : MGMT641102-Global Project Management https://njit.instructure.com/courses/27956/quizzes/88088?module_item_id=1002331 14/18 Monte Carlo simulation ou Answered ou Answered orrect Answers orrect Answers Risk Analysis 1 / 1 pts Question 35 G is a part of overhead. True False Correct! Correct! 0 / 1 pts Question 36 This involves partnering with another party or parties who can better capture the value of the opportunity or at least reduce the cost of exploiting the opportunity. Exploit Sharing orrect Answer orrect Answer Accept Enhance ou Answered ou Answered 1 / 1 pts Question 37

4/27/23, 10:11 PM Mini PMP - Chapter 7 Budgeting and Risk Management : MGMT641102-Global Project Management https://njit.instructure.com/courses/27956/quizzes/88088?module_item_id=1002331 15/18 Developing procedures and techniques to enhance opportunities and reduce threats to the projectÕs objectives. Risk monitoring and control Quantitative risk analysis Risk response planning Correct! Correct! Risk management register 0 / 1 pts Question 38 The traditional organizational budget is _____. Top-down ou Answered ou Answered orrect Answers orrect Answers category-oriented 1 / 1 pts Question 39 Performing a qualitative analysis of risks and conditions to prioritize their impacts on project objectives. Quantitative risk analysis Risk identification Qualitative risk analysis Correct! Correct! Risk management planning

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4/27/23, 10:11 PM Mini PMP - Chapter 7 Budgeting and Risk Management : MGMT641102-Global Project Management https://njit.instructure.com/courses/27956/quizzes/88088?module_item_id=1002331 16/18 0 / 1 pts Question 40 RFQ stands for _____.Ê Request for quote ou Answered ou Answered orrect Answers orrect Answers Request for Quotation 1 / 1 pts Question 41 The project manager alone can prepare the cost estimates for their project. True False Correct! Correct! 0 / 1 pts Question 42 _____: A chart showing probability on one side and impact on the other where threats and opportunities can be segmented into critical, monitor, or ignore cells. ignore ou Answered ou Answered orrect Answers orrect Answers Risk Matrix

4/27/23, 10:11 PM Mini PMP - Chapter 7 Budgeting and Risk Management : MGMT641102-Global Project Management https://njit.instructure.com/courses/27956/quizzes/88088?module_item_id=1002331 17/18 0 / 1 pts Question 43 If a project budget is underfunded, it will often do what? Reduce costs Stimulate increased performance ou Answered ou Answered Improve utilization of resources Frustrate committed stakeholders orrect Answer orrect Answer 0 / 1 pts Question 44 Unanswered Unanswered Each time the output doubles, the worker hours per unit decrease to a fixed percentage of their previous value. That percentage is called the _____ rate. ou Answered ou Answered orrect Answers orrect Answers learning 0 / 1 pts Question 45 Unanswered Unanswered The _____ charge is composed of the costs of senior management, the various data functions, and any other expenses not included in overhead. Often, these charges are a fixed percentage of either the direct costs or the total of all direct and indirect costs.

4/27/23, 10:11 PM Mini PMP - Chapter 7 Budgeting and Risk Management : MGMT641102-Global Project Management https://njit.instructure.com/courses/27956/quizzes/88088?module_item_id=1002331 18/18 ou Answered ou Answered orrect Answers orrect Answers G Quiz Score: 22 out of 45

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Mini PMP - Chapter 7 Budgeting and Risk Management _ MGMT641102-Global Project Management

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