Successful Project Management 6th Edition By Gido – Test Bank

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INSTANT DOWNLOAD COMPLETE TEST BANK WITH ANSWERS

 

Successful Project Management 6th Edition By Gido – Test Bank

 

Sample  Questions

 

  1. Successful contract opportunities are grounded in
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Relationships establish the foundation for successful funding and contract opportunities.

Incorrect Relationships establish the foundation for successful funding and contract opportunities.

 

  1. Establishing and building trust is key to developing effective and successful relationships with clients and
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Establishing and building trust is key to developing effective and successful relationships with clients and partners.

Incorrect Establishing and building trust is key to developing effective and successful relationships with clients and partners.

 

  1. You learn more by telling than by
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   You learn more from listening than from telling.

Incorrect You learn more from listening than from telling.

 

  1. Taking credit for outcomes that others have accomplished is a way to build yourself for others to respect
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   Exaggeration and stretching the truth are actions that cause a customer to perceive you as unethical.

Incorrect Exaggeration and stretching the truth are actions that cause a customer to perceive you as unethical.

 

 

  1. Always put the client
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Clients want to be confident that any projects they do with a contractor will be successful, involve a good working relationship with the contractor, and help the clients achieve their business goals.

Incorrect Clients want to be confident that any projects they do with a contractor will be successful, involve a good working relationship with the contractor, and help the clients achieve their business goals.

 

  1. It is ok to use foul language, slang, and jargon with clients. Especially when they are using
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   Even if the client is using foul language, slang, and jargon, it is best to avoid using them.

Incorrect Even if the client is using foul language, slang, and jargon, it is best to avoid using them.

 

  1. Waiting to develop a proposal until an RFP is announced is important to be sure all the information is
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   The final RFP should be used to finalize the proposal. The proposal should be started prior to the RFP release.

Incorrect The final RFP should be used to finalize the proposal. The proposal should be started prior to the RFP release.

 

  1. Helping customers identify needs, even if they are needs your company cannot help them address, is a way to position your company to win future
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Working closely with a potential customer puts a contractor in a better position to be selected eventually as the winning contractor when the customer does issue an RFP.

Incorrect Working closely with a potential customer puts a contractor in a better position to be selected eventually as the winning contractor when the customer does issue an RFP.

 

 

  1. The cost of developing a proposal should be added in as a direct expense in the budget for a
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   The cost of developing a proposal is a marketing or business development cost. These are not direct expenses within projects.

Incorrect The cost of developing a proposal is a marketing or business development cost. These are not direct expenses within projects.

 

  1. It is unethical to submit an unsolicited proposal to a
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct  In some cases, the contractor may prepare an unsolicited proposal and present it to the customer.

Incorrect In some cases, the contractor may prepare an unsolicited proposal and present it to the customer.

 

  1. It is unfair to receive a noncompetitive contract with a customer that was thinking about developing an
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   If the customer is confident that the proposal will address their need or solve their problem at a reasonable cost, the customer may simply negotiate a contract with the contractor to implement the proposed project, thus eliminating the preparation of an RFP and the subsequent competitive proposal  process.

Incorrect If the customer is confident that the proposal will address their need or solve their problem at a reasonable cost, the customer may simply negotiate a contract with the contractor to implement the proposed project, thus eliminating the preparation of an RFP and the subsequent competitive proposal  process.

 

  1. A contractor’s pre­RFP/proposal efforts are crucial to establishing the foundation for eventually winning a contract

from the customer.

  1. True
  2. False

 

ANSWER:       True

FEEDBACK:  Correct   A contractor’s pre­RFP/proposal efforts are crucial to establishing the foundation for eventually winning a contract from the customer.

Incorrect A contractor’s pre­RFP/proposal efforts are crucial to establishing the foundation for eventually winning a contract from the customer.

 

 

  1. Contractors interested in submitting a proposal in response to an RFP must be realistic about the probability of being selected as the winning
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Having a realistic expectation helps with deciding to bid on an RFP. Developing a proposal takes time and money.

Incorrect Having a realistic expectation helps with deciding to bid on an RFP. Developing a proposal takes time and money.

 

  1. A contractor should avoid no-bid
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   Contractors must evaluate a number of factors and make a bid or no-bid decision.

Incorrect Contractors must evaluate a number of factors and make a bid or no-bid decision.

 

  1. A contractor should bid on RFPs where there is little or no competition and avoid ones where they might have a competitor bid on the
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   Contractors must evaluate their position, build a relationship with the customer, and propose projects where they have a better than average chance to win.

Incorrect Contractors must evaluate their position, build a relationship with the customer, and propose projects where they have a better than average chance to win.

 

  1. If there is high risk for the success of a project, the contractor should include a cost-reimbursement plan in their cost section if the RFP did not specify a contract
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   A cost-reimbursement contract is recommended for projects that involve risk.

Incorrect A cost-reimbursement contract is recommended for projects that involve risk.

 

 

  1. An RFP says that the contract planned is to be fixed price. The project is well-defined and low risk. The contractor should bid based upon the contract type and risk
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Fixed price contracts are for projects that are well defined and low risk.

Incorrect Fixed price contracts are for projects that are well defined and low risk.

 

  1. A contractor should make a no-bid decision for a project that would not be consistent the contractor’s business
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Bidding on projects that are outside the contractor’s business mission may negatively hurt the contractor’s reputation if the project is not successful or may take away necessary resources from projects that are consistent with the mission.

Incorrect Bidding on projects that are outside the contractor’s business mission may negatively hurt the contractor’s reputation if the project is not successful or may take away necessary resources from projects that are consistent with the mission.

 

  1. The reputation of the company that announced the RFP should be evaluated as a factor as well as the reputation of the contractor when making a bid or no-bid
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Deciding to bid on an RFP is as much an evaluation of the customer as it is of the contractor.

Incorrect Deciding to bid on an RFP is as much an evaluation of the customer as it is of the contractor.

 

  1. Good pre-RFP marketing helps a contractor to know if funds will be available for a project in an
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Sometimes companies issue an RFP even if they are unsure if funds will be available for the project. Pre-RFP marketing could inform the contractor if funds are available.

Incorrect Sometimes companies issue an RFP even if they are unsure if funds will be available for the project. Pre-RFP marketing could inform the contractor if funds are available.

 

 

  1. A contractor should only respond to RFPs if they have the required resources already on their
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   A contractor can outsource or hire subcontractors to perform work and not have to maintain a staff with specialty knowledge that may not be needed for other projects.

Incorrect A contractor can outsource or hire subcontractors to perform work and not have to maintain a staff with specialty knowledge that may not be needed for other projects.

 

  1. The length of the proposal is not as important as the quality of the information contained in the
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   A quality proposal that meets the format requirements of an RFP is better than a longer lesser quality proposal.

Incorrect A quality proposal that meets the format requirements of an RFP is better than a longer lesser quality proposal.

 

  1. The bid or no-bid decision is made on the capability to develop a quality proposal as well as the capability to complete the project if the contractor wins the
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   If the contractor writes a quality proposal and cannot perform the project, this could hurt chances for future business.

Incorrect If the contractor writes a quality proposal and cannot perform the project, this could hurt chances for future business.

 

  1. A bid/no-bid checklist helps a contractor to decide whether to submit a proposal in response to an
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   The bid/no-bid checklist might be used by the decision makers to arrive at a consensus to bid or not to bid.

Incorrect The bid/no-bid checklist might be used by the decision makers to arrive at a consensus to bid or not to bid.

 

 

  1. A customer uses a request for proposal to solicit bids and then award a noncompetitive
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   The proposal process is a competitive process. A customer uses a RFP to solicit bids and then award a competitive contract.

Incorrect The proposal process is a competitive process. A customer uses a RFP to solicit bids and then award a competitive contract.

 

  1. Submitting a proposal that meets the customer’s statement of work and requirements is all that is needed to secure a
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   Submitting a proposal that meets the customer’s statement of work and requirements in the RFP is not sufficient to guarantee selection as the winning contractor.

Incorrect Submitting a proposal that meets the customer’s statement of work and requirements in the RFP is not sufficient to guarantee selection as the winning contractor.

 

  1. The customer selects the proposal that it expects will provide the best
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Many proposals will likely meet the requirements. To choose a contractor, the customer selects the one that is expected to provide the best value.

Incorrect Many proposals will likely meet the requirements. To choose a contractor, the customer selects the one that is expected to provide the best value.

 

  1. A complex proposal is a technical report with charts and figures to explain the
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   Even if the proposal contains technical information, a proposal is a selling document.

Incorrect Even if the proposal contains technical information, a proposal is a selling document.

 

  1. It is important to emphasize the unique features that differentiate the contractor from other
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   In the proposal, the contractor must highlight the unique factors that differentiate it from competing contractors.

Incorrect In the proposal, the contractor must highlight the unique factors that differentiate it from competing contractors.

 

  1. Key partners and subcontractors can help win a project for a contractor by complementing the contractor’s
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Including appropriate partners or subcontractors to perform specific key tasks on a proposed project can provide a significant competitive advantage, especially if those organizations have specific technical expertise that is crucial to the project.

Incorrect Including appropriate partners or subcontractors to perform specific key tasks on a proposed project can provide a significant competitive advantage, especially if those organizations have specific technical expertise that is crucial to the project.

 

  1. Including complicated graphics in a proposal demonstrates a contractor’s advanced skill and shows specific technical
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   Overly complex illustrations should be avoided; several simple graphics will likely be easier for the customer to understand than one complicated graphic.

Incorrect Overly complex illustrations should be avoided; several simple graphics will likely be easier for the customer to understand than one complicated graphic.

 

  1. Proposals must be realistic in terms of the proposed scope, cost, and schedule in the eyes of the
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Proposals that promise too much or are overly optimistic may seem unbelievable and again raise doubt about whether the contractor understands what needs to be done and how to do it.

Incorrect Proposals that promise too much or are overly optimistic may seem unbelievable and again raise doubt about whether the contractor understands what needs to be done and how to do it.

 

  1. Proposals that promise too much or are overly optimistic may seem believable and support that the contractor understands what needs to be done and how to do
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   Proposals that promise too much or are overly optimistic may seem unbelievable and again raise doubt about whether the contractor understands what needs to be done and how to do it.

Incorrect Proposals that promise too much or are overly optimistic may seem unbelievable and again raise doubt about whether the contractor understands what needs to be done and how to do it.

 

  1. A proposal manager is required to have a consistent, comprehensive proposal by the due date in the
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   A proposal manager may be designated to coordinate efforts to ensure a consistent, comprehensive proposal by the due date in the RFP.

Incorrect A proposal manager may be designated to coordinate efforts to ensure a consistent, comprehensive proposal by the due date in the RFP.

 

  1. Developing a large proposal is a
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Developing a comprehensive proposal for a large project should be treated as a project.

Incorrect Developing a comprehensive proposal for a large project should be treated as a project.

 

  1. If the RFP format requirement states a page limit, the customer can reject a proposal that exceeds the page limit without any further
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Some RFPs state that contractor proposals that exceed a certain number of pages will not be accepted by the customer.

Incorrect Some RFPs state that contractor proposals that exceed a certain number of pages will not be accepted by the customer.

 

 

  1. A specific proposed solution should be suggested for the customer’s
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   Some needs lend themselves to a specific proposed solution. Others do not. The solution requires analysis of the situation and development of a solution.

Incorrect Some needs lend themselves to a specific proposed solution. Others do not. The solution requires analysis of the situation and development of a solution.

 

  1. Specific criteria listed in the RFP should be restated in the proposal to reinforce to the customer that the contractor understands the
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Not addressing each of the customer’s requirements will raise doubt in the customer’s mind about the proposed solution and could hurt a contractor’s chances of winning the contract.

Incorrect Not addressing each of the customer’s requirements will raise doubt in the customer’s mind about the proposed solution and could hurt a contractor’s chances of winning the contract.

 

  1. Quantitative and qualitative benefits to the customer should be stated to help convince the customer of the value of the proposed
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   The contractor should state how the proposed approach or solution would benefit the customer and achieve the project’s success criteria or expected outcomes.

Incorrect The contractor should state how the proposed approach or solution would benefit the customer and achieve the project’s success criteria or expected outcomes.

 

  1. The proposal should include a lengthy, detailed list of activities to show planning has been well thought out by the
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   The contractor should define the major tasks that will be performed in carrying out the project and provide a brief description of what each major task includes.

Incorrect The contractor should define the major tasks that will be performed in carrying out the project and provide a brief description of what each major task includes.

 

 

  1. The schedule can include times for major tasks and key milestones to show sequence and interdependencies of the
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   The contractor should provide a schedule for performing the major tasks required to complete the project.

Incorrect The contractor should provide a schedule for performing the major tasks required to complete the project.

 

  1. Inclusion of an organization chart or assigned responsibility is helpful for the customer to evaluate the expertise of the project
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   The Inclusion of resumes of the key people is helpful for the customer to evaluate the expertise of the project staff. The inclusion of the responsibility assignments is helpful to communicate the project organization.

Incorrect The Inclusion of resumes of the key people is helpful for the customer to evaluate the expertise of the project staff. The inclusion of the responsibility assignments is helpful to communicate the project organization.

 

  1. The objective of the cost section of the contractor proposal is to convince the customer that the contractor’s price for the proposed project is realistic and
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   The objective of the cost section of the contractor proposal is to convince the customer that the contractor’s price for the proposed project is realistic and reasonable.

Incorrect The objective of the cost section of the contractor proposal is to convince the customer that the contractor’s price for the proposed project is realistic and reasonable.

 

  1. Realistic estimated hours and hourly labor rate for each person or classification is included in the cost
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   The cost section gives the estimated costs of the various types or classifications of people who are expected to work on the project.

Incorrect The cost section gives the estimated costs of the various types or classifications of people who are expected to work on the project.

 

 

  1. Equipment that is included in the project costs are those required by the
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Some projects require equipment that must be purchased as part of the project.

Incorrect Some projects require equipment that must be purchased as part of the project.

 

  1. Special facilities for a project are a project cost and should be included in the project cost estimates for the
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Some projects may require special facilities or additional space for the project team. These should be included in the project costs.

Incorrect Some projects may require special facilities or additional space for the project team. These should be included in the project costs.

 

  1. Contractors may outsource some of the work to subcontractors or consultants to perform certain project
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   When contractors do not have the expertise or resources to do certain project tasks, they may outsource some of the work to subcontractors or consultants to perform those tasks.

Incorrect When contractors do not have the expertise or resources to do certain project tasks, they may outsource some of the work to subcontractors or consultants to perform those tasks.

 

  1. Local travel is usually not included in the project
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   If travel (other than local travel) is required during the project, the costs of travel such as air fare, lodging, and meals need to be included.

Incorrect If travel (other than local travel) is required during the project, the costs of travel such as air fare, lodging, and meals need to be included.

 

 

  1. Documentation deliverables are sometimes shown as separate costs in the project cost
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Some customers want the contractor to show separately the costs associated with the project documentation deliverables.

Incorrect Some customers want the contractor to show separately the costs associated with the project documentation deliverables.

 

  1. Indirect costs of doing business are included in proposals where the customer permits the charging of indirect
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Indirect costs of doing business, such as insurance, depreciation, accounting, general management, marketing, and human resources are included in the project costs.

Incorrect Indirect costs of doing business, such as insurance, depreciation, accounting, general management, marketing, and human resources are included in the project costs.

 

  1. Costs of escalation are costs associated with the increased costs for materials and wages in a long term
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Long term projects should include the costs of escalation in wage rates and materials costs over the duration of the project in the cost estimate.

Incorrect Long term projects should include the costs of escalation in wage rates and materials costs over the duration of the project in the cost estimate.

 

  1. Management reserves are the estimated costs to cover unexpected
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Contingency, or management reserve, is an amount the contractor may want to include to cover unexpected situations that may come up during the project.

Incorrect Contingency, or management reserve, is an amount the contractor may want to include to cover unexpected situations that may come up during the project.

 

 

  1. A desired profit is added after calculating all the direct and indirect costs for a
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   The contractor must aggregate the cost elements and then add an amount for its desired profit.

Incorrect The contractor must aggregate the cost elements and then add an amount for its desired profit.

 

  1. It is good practice to have the person who will be responsible for the major work tasks estimate the associated
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   It is good practice to have the person who will be responsible for the major work tasks estimate the associated costs.

Incorrect It is good practice to have the person who will be responsible for the major work tasks estimate the associated costs.

 

  1. Historical data can be used to guide estimating costs for a proposed
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Historical data can be used as a guide in estimating costs for the proposed project.

Incorrect Historical data can be used as a guide in estimating costs for the proposed project.

 

  1. A ballpark estimate is acceptable for the proposal. There will be time to figure out the budget after the contract is
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   Contractors should take the time to think through the project and estimate costs at a detailed level, rather than making a ballpark estimate.

Incorrect Contractors should take the time to think through the project and estimate costs at a detailed level, rather than making a ballpark estimate.

 

 

  1. For projects that are new and have high risk, the contractor should include larger amounts of
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   It may be necessary to include a large amount of contingency, or management reserve, funds for projects with high risk.

Incorrect It may be necessary to include a large amount of contingency, or management reserve, funds for projects with high risk.

 

  1. A contractor that is entering a similar but new field should plan a smaller profit to increase chances of winning the
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Sometimes a contractor must be willing to make a low profit in order to gain entry into the market and establish a reputation.

Incorrect Sometimes a contractor must be willing to make a low profit in order to gain entry into the market and establish a reputation.

 

  1. If a customer has stated the budget in the RFP, the customer might reject proposals that have cost estimates greater than the budget without further review of the
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   A contractor who knows how much money the customer has budgeted for a project should not submit a price that exceeds what the customer has available.

Incorrect A contractor who knows how much money the customer has budgeted for a project should not submit a price that exceeds what the customer has available.

 

  1. By participating in pre-RFP meetings, a contractor may gain budget intelligence and be able to submit a project proposal with a more appropriate level of effort
    1. True
    2. False

 

ANSWER:       True

FEEDBACK: Correct If the customer issues a competitive RFP (and does not disclose the amount budgeted for the project), the contractor with the customer budget “intelligence” information may be in a better position to submit a proposal with an acceptable price.

Incorrect If the customer issues a competitive RFP (and does not disclose the amount budgeted for the project), the contractor with the customer budget “intelligence” information may be in a better position to submit a proposal with an acceptable price.

 

  1. The amount of profit on a project is adjusted depending upon the amount of competition for a
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   If there is a large amount of competition for a project, a contractor may take a lower amount of profit to be competitive.

Incorrect If there is a large amount of competition for a project, a contractor may take a lower amount of profit to be competitive.

 

  1. Contractors must continue to be proactive after submitting a proposal by contacting the customer to ensure the RFP has been received and answer any
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   The contractor should call the customer to confirm that the proposal was received. After several days, the contractor should contact the customer again and ask whether the customer has any questions or needs clarification of anything in the proposal.

Incorrect The contractor should call the customer to confirm that the proposal was received. After several days, the contractor should contact the customer again and ask whether the customer has any questions or needs clarification of anything in the proposal.

 

  1. Responding to follow-up communications may be viewed as an unfair advantage for
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Some customers do not respond to follow-up communications from contractors so that no contractor gains an unfair advantage in influencing the proposal evaluation process.

Incorrect Some customers do not respond to follow-up communications from contractors so that no contractor gains an unfair advantage in influencing the proposal evaluation process.

 

  1. For clarification on a specific proposal, a customer may send a list of questions to be
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Some customers will send a list of specific questions that need to be answered or points that need to be clarified about a particular contractor’s proposal, and require a written response from the contractor by a specific date.

Incorrect Some customers will send a list of specific questions that need to be answered or points that need to be clarified about a particular contractor’s proposal, and require a written response from the contractor by a specific date.

  1. Project proposals are evaluated with a standard set of
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   Customers evaluate contractors’ proposals in many different ways.

Incorrect Customers evaluate contractors’ proposals in many different ways.

 

  1. Proposal evaluation scorecards are used in the decision making process to inform the final
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Proposal evaluation scorecards are used by the proposal evaluation team to reach a consensus on which contractor, if any, to select as the winner. The scorecards are not the sole mechanism for evaluating proposals and selecting the winner. They are usually used as input to the decision- making process.

Incorrect Proposal evaluation scorecards are used by the proposal evaluation team to reach a consensus on which contractor, if any, to select as the winner. The scorecards are not the sole mechanism for evaluating proposals and selecting the winner. They are usually used as input to the decision- making process.

 

  1. As soon as a contractor finds out it is the winner, it can start working on the
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   Before the project can proceed, a contract must be signed between the customer and the contractor.

Incorrect Before the project can proceed, a contract must be signed between the customer and the contractor.

 

  1. It is illegal for the contractor to overstate the hours or
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Misrepresentation of costs is the part of the contract that states it is illegal for the contractor to overstate the hours or costs.

Incorrect Misrepresentation of costs is the part of the contract that states it is illegal for the contractor to overstate the hours or costs.

 

 

  1. The contractor must notify the customer immediately of any actual or anticipated cost savings or schedule
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   The contractor must notify the customer immediately of any actual or anticipated cost overruns or schedule delays.

Incorrect The contractor must notify the customer immediately of any actual or anticipated cost overruns or schedule delays.

 

  1. The contractor needs to obtain advance approval from the customer before hiring a subcontractor to perform a project
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   The contractor needs to obtain advance approval from the customer before hiring a subcontractor to perform a project task.

Incorrect The contractor needs to obtain advance approval from the customer before hiring a subcontractor to perform a project task.

 

  1. By having a customer supply schedule, the contractor is protected from incurring schedule slippage caused by customer delays in furnishing information, parts, or other
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   By having a customer supply schedule, the contractor is protected from incurring schedule slippage caused by customer delays in furnishing information, parts, or other items.

Incorrect By having a customer supply schedule, the contractor is protected from incurring schedule slippage caused by customer delays in furnishing information, parts, or other items.

 

  1. At times, patents may result from performing the
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   At times, patents may result from performing the project.

Incorrect At times, patents may result from performing the project.

 

 

  1. One party is prohibited from disclosing confidential information, technologies, or processes utilized by the other party during the project to anyone else or using it for any purpose other than work on the
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct  Prohibits one party from disclosing confidential information, technologies, or processes utilized by the other party during the project to anyone else or using it for any purpose other than work on the project.

Incorrect Prohibits one party from disclosing confidential information, technologies, or processes utilized by the other party during the project to anyone else or using it for any purpose other than work on the project.

 

  1. Contracts for projects that are done for a foreign customer or are conducted in part in a foreign country do not require the contractor to make certain
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   Contracts for projects that are done for a foreign customer or are conducted in part in a foreign country may require the contractor to make certain accommodations.

Incorrect Contracts for projects that are done for a foreign customer or are conducted in part in a foreign country may require the contractor to make certain accommodations.

 

  1. The customer can terminate the contract according to requirements in the
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   The customer can terminate the contract.

Incorrect The customer can terminate the contract.

 

  1. The customer will make payments to the contractor according to the payment schedule in the
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   The customer will make payments to the contractor as they agreed.

Incorrect The customer will make payments to the contractor as they agreed.

 

 

  1. The customer will pay the contractor a bonus if the project is completed ahead of schedule or exceeds other customer performance
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   The customer may pay the contractor a bonus if the project is completed ahead of schedule or exceeds other customer performance requirements.

Incorrect The customer may pay the contractor a bonus if the project is completed ahead of schedule or exceeds other customer performance requirements.

 

  1. Changes can be initiated by the customer or be proposed by the contractor. Some changes may necessitate a change in price (increase or decrease); others may
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Changes can be initiated by the customer or be proposed by the contractor. Some changes may necessitate a change in price (increase or decrease); others may not.

Incorrect Changes can be initiated by the customer or be proposed by the contractor. Some changes may necessitate a change in price (increase or decrease); others may not.

 

  1. All changes must be documented and approved by the contractor’s project team before they are incorporated into the
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   All changes must be documented and approved by the customer before they are incorporated into the project.

Incorrect All changes must be documented and approved by the customer before they are incorporated into the project.

 

  1. Contractors measure the success of their proposal efforts by the number of times their proposals are selected by customers and/or by the total dollar value of their proposals that are
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Contractors measure the success of their proposal efforts by the number of times their proposals are selected by customers and/or by the total dollar value of their proposals that are selected.

Incorrect Contractors measure the success of their proposal efforts by the number of times their proposals are selected by customers and/or by the total dollar value of their proposals that are selected.

 

 

  1. The win ratio is the percentage of the number of proposals a contractor won out of the total number of proposals the contractor submitted to various customers over a particular time
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   The win ratio is the percentage of the number of proposals a contractor won out of the total number of proposals the contractor submitted to various customers over a particular time period.

Incorrect The win ratio is the percentage of the number of proposals a contractor won out of the total number of proposals the contractor submitted to various customers over a particular time period.

 

  1. The total dollar value approach is the ratio of the total dollar value of proposals that the contractor won as a percentage of the total dollar value of all the proposals the contractor submitted to various customers during a specific time
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   The total dollar value approach is the ratio of the total dollar value of proposals that the contractor won as a percentage of the total dollar value of all the proposals the contractor submitted to various customers during a specific time period.

Incorrect The total dollar value approach is the ratio of the total dollar value of proposals that the contractor won as a percentage of the total dollar value of all the proposals the contractor submitted to various customers during a specific time period.

 

  1. Customers and partner organizations prefer to work with people they
    1. know are very large with many
    2. know and
    3. know are lean companies with few
    4. have read

 

ANSWER:       b

FEEDBACK:  a. Customers and partner organizations prefer to work with people they know and trust.

  1. Customers and partner organizations prefer to work with people they know and
  2. Customers and partner organizations prefer to work with people they know and
  3. Customers and partner organizations prefer to work with people they know and

 

  1.  establish the foundation for successful
    1. Research and records
    2. Relationships
    3. Public documents
    4. Financial investments

 

ANSWER:       b

FEEDBACK:  a. Relationships establish the foundation for successful funding and contract opportunities.

  1. Relationships establish the foundation for successful funding and contract
  2. Relationships establish the foundation for successful funding and contract
  3. Relationships establish the foundation for successful funding and contract

 

  1. The most effective way to build a relationship is to
    1. talk on the phone
    2. send e-mails.
    3. meet face-to-face.
    4. maintain a blog so that readers know all about

 

ANSWER:       c

FEEDBACK:  a. Relationship building is a contact sport and requires face-to-face contact. It cannot be done as effectively through electronic messages or phone conversations.

  1. Relationship building is a contact sport and requires face-to-face contact. It cannot be done as effectively through electronic messages or phone
  2. Relationship building is a contact sport and requires face-to-face contact. It cannot be done as effectively through electronic messages or phone
  3. Relationship building is a contact sport and requires face-to-face contact. It cannot be done as effectively through electronic messages or phone

 

  1. Contractors should get to know people in customer organizations
    1. by talking all about themselves so the customers know
    2. by limiting contacts to once or twice a year for
    3. on a business level
    4. on personal and business

 

ANSWER:       d

FEEDBACK:  a Contractors should get to know people in potential customer organizations on a personal basis.

  1. Contractors should get to know people in potential customer organizations on a personal
  2. Contractors should get to know people in potential customer organizations on a personal
  3. Contractors should get to know people in potential customer organizations on a personal

 

  1. A good way to start a conversation with a potential customer at XYZ Company is
    1. How did your son’s football team do this season?
    2. Did your sales increase this year?
    3. We are working on a project for ABC
    4. I just finished a meeting with Grace from ABC. She told me about their new

 

ANSWER:       a

FEEDBACK:  a.          Start every dialogue by showing a personal interest and making a personal inquiry.

  1. Start every dialogue by showing a personal interest and making a personal
  2. Start every dialogue by showing a personal interest and making a personal
  3. Start every dialogue by showing a personal interest and making a personal

 

  1. You are reading an article about butterfly migration and remember that John from XYZ Company studied lepidopterology. You decide to
    1. send John a copy of the article with a note saying you thought this might be of
    2. not bother John thinking he probably already read the
    3. send John a copy of the article with a note expressing how displeased you are with the latest political
    4. print out a copy of the article and put it in your files in case John comes to the office for a

 

ANSWER:       a

FEEDBACK:  a. Showing personal interest lets the customer know that you are interested in the person and not just the contract. By sharing the article, it shows the personal touch. In the note and conversations, it may be best to avoid topics that could cause disagreements.

  1. Showing personal interest lets the customer know that you are interested in the person and not just the contract. By sharing the article, it shows the personal touch. In the note and conversations, it may be best to avoid topics that could cause
  2. Showing personal interest lets the customer know that you are interested in the person and not just the contract. By sharing the article, it shows the personal touch. In the note and conversations, it may be best to avoid topics that could cause
  3. Showing personal interest lets the customer know that you are interested in the person and not just the contract. By sharing the article, it shows the personal touch. In the note and conversations, it may be best to avoid topics that could cause

 

  1. A way to foster trust is to
    1. be reliable and
    2. only contact the customer when
    3. ask about upcoming RFPs a company is
    4. get insider information about a company then share it with a

 

ANSWER:       a

FEEDBACK:  a. One way to foster this is to always keep your word; be reliable and responsive.

  1. One way to foster this is to always keep your word; be reliable and
  2. One way to foster this is to always keep your word; be reliable and
  3. One way to foster this is to always keep your word; be reliable and

 

  1. Sleeping on a contradictory issue and providing a thoughtful answer the next day
    1. reinforces that you cannot make quick
    2. reinforces your thoughtfulness and builds a positive perception of you by the
    3. lets you get more information to prove the client was
    4. gives you time to find a comic strip to include that expresses your political point of

 

ANSWER:       b

FEEDBACK:  a. Do not make quick knee-jerk responses that you may regret later. It is better to sleep on a contradictory issue and provide a more thoughtful response the next day.

  1. Do not make quick knee-jerk responses that you may regret later. It is better to sleep on a contradictory issue and provide a more thoughtful response the next
  2. Do not make quick knee-jerk responses that you may regret later. It is better to sleep on a contradictory issue and provide a more thoughtful response the next
  3. Do not make quick knee-jerk responses that you may regret later. It is better to sleep on a contradictory issue and provide a more thoughtful response the next

 

  1. It is advisable to build relationship with in a client or partner
    1. one individual
    2. several key people
    3. the top ranking official
    4. the chief financial officer

 

ANSWER:       b

FEEDBACK:  a. Build relationships with several key people in a client or partner organization; key individuals may leave and others may become more influential.

  1. Build relationships with several key people in a client or partner organization; key individuals may leave and others may become more
  2. Build relationships with several key people in a client or partner organization; key individuals may leave and others may become more
  3. Build relationships with several key people in a client or partner organization; key individuals may leave and others may become more

 

 

  1. Clients want to work with people who can problems, not with those who merely
    1. identify, evaluate
    2. assess, talk about
    3. solve, identify
    4. create, solve

 

ANSWER:       c

FEEDBACK:  a. Clients want to work with people who can solve problems, not with those who merely identify them.

  1. Clients want to work with people who can solve problems, not with those who merely identify
  2. Clients want to work with people who can solve problems, not with those who merely identify
  3. Clients want to work with people who can solve problems, not with those who merely identify

 

  1. Your company has been supplying a local company with warehouse management. A proposed project requires warehouse management in 15 national locations. This is an example of how the contractor could
    1. take on too much risk because they have only worked with a small
    2. hurt its local reputation by working on projects with other
    3. develop its proposal writing skills by bidding on the
    4. extend its capabilities and expand its business to a larger customer

 

ANSWER:       d

FEEDBACK:  a. A factor to consider when making a bid or no-bid decision is if the project will be an extension of capabilities or if the capacity needed causes too much risk. Larger projects than those in a contractor’s portfolio are an example of extending its capabilities.

  1. A factor to consider when making a bid or no-bid decision is if the project will be an extension of capabilities or if the capacity needed causes too much risk. Larger projects than those in a contractor’s portfolio are an example of extending its
  2. A factor to consider when making a bid or no-bid decision is if the project will be an extension of capabilities or if the capacity needed causes too much risk. Larger projects than those in a contractor’s portfolio are an example of extending its
  3. A factor to consider when making a bid or no-bid decision is if the project will be an extension of capabilities or if the capacity needed causes too much risk. Larger projects than those in a contractor’s portfolio are an example of extending its

 

 

  1. Proposal preparation is completed by
    1. a single person when proposing a multimillion-dollar
    2. a large team for a simple
    3. a proposal manager regardless of the project
    4. one or more people depending upon the requirements of the

 

ANSWER:       d

FEEDBACK:  a. The size of the team that prepares a proposal is dependent upon the requirements.

  1. The size of the team that prepares a proposal is dependent upon the
  2. The size of the team that prepares a proposal is dependent upon the
  3. The size of the team that prepares a proposal is dependent upon the

 

  1. Proposals are often organized
    1. as one long document with no breaks or
    2. with technical, management, and cost sections that may not be
    3. as separate volumes to display the different phases of the project life
    4. with a lot of detail to identify the customer’s

 

ANSWER:       b

FEEDBACK:  a. The length of the proposal is dependent upon the requirements of the RFP. Proposals usually have three sections: technical, management, and cost sections. A proposal may be simplified and not have headings for the three sections.

  1. The length of the proposal is dependent upon the requirements of the RFP. Proposals usually have three sections: technical, management, and cost sections. A proposal may be simplified and not have headings for the three
  2. The length of the proposal is dependent upon the requirements of the RFP. Proposals usually have three sections: technical, management, and cost sections. A proposal may be simplified and not have headings for the three
  3. The length of the proposal is dependent upon the requirements of the RFP. Proposals usually have three sections: technical, management, and cost sections. A proposal may be simplified and not have headings for the three

 

 

  1. The contractor should state its understanding of the customer’s need
    1. in its own words with description of the customer’s current
    2. by restating the problem statement that appears in the
    3. by including complex graphics to show
    4. adding lots of information about other projects that are

 

ANSWER:       a

FEEDBACK:  a. The contractor should state its understanding of the customer’s problem or need in its own words, not merely restate the problem statement that appears in the customer’s RFP.

  1. The contractor should state its understanding of the customer’s problem or need in its own words, not merely restate the problem statement that appears in the customer’s
  2. The contractor should state its understanding of the customer’s problem or need in its own words, not merely restate the problem statement that appears in the customer’s
  3. The contractor should state its understanding of the customer’s problem or need in its own words, not merely restate the problem statement that appears in the customer’s

 

  1. Materials that would be used for a construction project are
    1. concrete truck delivery fees and
    2. people, money, and
    3. lumber, windows, and
    4. rough carpenters, plumbers, and

 

ANSWER:       c

FEEDBACK:  a. Materials are items the contractor needs to purchase to complete the project.

  1. Materials are items the contractor needs to purchase to complete the
  2. Materials are items the contractor needs to purchase to complete the
  3. Materials are items the contractor needs to purchase to complete the

 

 

  1. When making contingency estimates, the contractor should
    1. estimate the amount to mitigate high impact and probable
    2. include an amount for each issue that has high
    3. include a small amount for each possible
    4. heavily pad the estimates to include every

 

ANSWER:       a

FEEDBACK:  a. Contingency estimates should not be so heavily “padded” that they include contingency funds for every conceivable thing that might come up or go wrong.

  1. Contingency estimates should not be so heavily “padded” that they include contingency funds for every conceivable thing that might come up or go
  2. Contingency estimates should not be so heavily “padded” that they include contingency funds for every conceivable thing that might come up or go
  3. Contingency estimates should not be so heavily “padded” that they include contingency funds for every conceivable thing that might come up or go

 

  1. A BAFO requested by a customer is
    1. a base accounting and finance office clarification from the
    2. a best and first offer from the
    3. a clarification request for broad, ambiguous, frivolous, and obscure aspects of the
    4. a best and final offer from the

 

ANSWER:       d

FEEDBACK:  a. The customer may also ask each of these contractors to submit a best and final offer (BAFO).

  1. The customer may also ask each of these contractors to submit a best and final offer (BAFO).
  2. The customer may also ask each of these contractors to submit a best and final offer (BAFO).
  3. The customer may also ask each of these contractors to submit a best and final offer (BAFO).

 

 

  1. A vehicle for establishing good customer–contractor communications and arriving at a mutual understanding and clear expectations to ensure project success is
    1. a request for
    2. a
    3. a communication
    4. the initiation phase of a

 

ANSWER:       b

FEEDBACK:  a. A contract is a vehicle for establishing good customer–contractor communications and arriving at a mutual understanding and clear expectations to ensure project success.

  1. A contract is a vehicle for establishing good customer–contractor communications and arriving at a mutual understanding and clear expectations to ensure project
  2. A contract is a vehicle for establishing good customer–contractor communications and arriving at a mutual understanding and clear expectations to ensure project
  • A contract is a vehicle for establishing good customer–contractor communications and arriving at a mutual understanding and clear expectations to ensure project

 

  1. The contract must clearly spell out
    1. the names of those responsible for
    2. the number of contact hours the contractor must have with the
    3. the deliverables the contractor is expected to
    4. the level of risk acceptable by the

 

ANSWER:       c

FEEDBACK:  a. The contract must clearly spell out the deliverables the contractor is expected to provide.

  1. The contract must clearly spell out the deliverables the contractor is expected to
  2. The contract must clearly spell out the deliverables the contractor is expected to
  3. The contract must clearly spell out the deliverables the contractor is expected to

 

  1. The type of contract where the customer and the contractor agree on a price for the proposed work is
    1. a fixed price contract
    2. a fixed
    3. a cost reimbursement
    4. a work

 

ANSWER:       a

FEEDBACK:  a. In a fixed-price contract, the customer and the contractor agree on a price for the proposed work.

  1. In a fixed-price contract, the customer and the contractor agree on a price for the proposed
  2. In a fixed-price contract, the customer and the contractor agree on a price for the proposed
  3. In a fixed-price contract, the customer and the contractor agree on a price for the proposed
  1. A contractor bidding on a fixed-price project must develop
    1. accurate and complete cost estimates and include sufficient contingency
    2. a well-defined project with low
    3. techniques to control costs and reduce expenses to make a larger
    4. techniques to determine the cost-at-completion with actual

 

ANSWER:       a

FEEDBACK:  a. A contractor bidding on a fixed-price project must develop accurate and complete cost estimates and include sufficient contingency costs.

  1. A contractor bidding on a fixed-price project must develop accurate and complete cost estimates and include sufficient contingency
  2. A contractor bidding on a fixed-price project must develop accurate and complete cost estimates and include sufficient contingency
  3. A contractor bidding on a fixed-price project must develop accurate and complete cost estimates and include sufficient contingency

 

  1. Fixed-price contracts are most appropriate for projects that
    1. take less than one year to
    2. are with customers that want a single payment
    3. are well defined and entail little
    4. involve

 

ANSWER:       c

FEEDBACK:  a. Fixed-price contracts are most appropriate for projects that are well defined and entail little risk.

  1. Fixed-price contracts are most appropriate for projects that are well defined and entail little
  2. Fixed-price contracts are most appropriate for projects that are well defined and entail little
  3. Fixed-price contracts are most appropriate for projects that are well defined and entail little

 

 

  1. In a , the customer agrees to pay the contractor for all actual costs (labor, materials, and so forth), regardless of amount, plus some agreed-upon
    1. fixed price contract
    2. fixed agreement
    3. cost reimbursement contract
    4. work agreement

 

ANSWER:       c

FEEDBACK:  a. In a cost-reimbursement contract, the customer agrees to pay the contractor for all actual costs (labor, materials, and so forth), regardless of amount, plus some agreed-upon profit.

  1. In a cost-reimbursement contract, the customer agrees to pay the contractor for all actual costs (labor, materials, and so forth), regardless of amount, plus some agreed-upon
  2. In a cost-reimbursement contract, the customer agrees to pay the contractor for all actual costs (labor, materials, and so forth), regardless of amount, plus some agreed-upon
  3. In a cost-reimbursement contract, the customer agrees to pay the contractor for all actual costs (labor, materials, and so forth), regardless of amount, plus some agreed-upon

 

  1. In , the customer usually requires that, throughout the project, the contractor regularly compares actual expenditures with the proposed budget and reforecasts cost at-completion, comparing it with the original proposed
    1. fixed price contracts
    2. fixed agreements
    3. cost reimbursement contracts
    4. work agreements

 

ANSWER:       c

FEEDBACK:  a. In cost-reimbursement contracts, the customer usually requires that, throughout the project, the contractor regularly compares actual expenditures with the proposed budget and reforecasts cost at-completion, comparing it with the original proposed price.

  1. In cost-reimbursement contracts, the customer usually requires that, throughout the project, the contractor regularly compares actual expenditures with the proposed budget and reforecasts cost at-completion, comparing it with the original proposed
  2. In cost-reimbursement contracts, the customer usually requires that, throughout the project, the contractor regularly compares actual expenditures with the proposed budget and reforecasts cost at-completion, comparing it with the original proposed
  3. In cost-reimbursement contracts, the customer usually requires that, throughout the project, the contractor regularly compares actual expenditures with the proposed budget and reforecasts cost at-completion, comparing it with the original proposed

 

 

  1. Cost-reimbursement contracts are most appropriate for projects that
    1. take less than one year to
    2. are with customers that want a single payment
    3. are well defined and entail little
    4. involve

 

ANSWER:       d

FEEDBACK:  a. Cost-reimbursement contracts are most appropriate for projects that involve risk.

  1. Cost-reimbursement contracts are most appropriate for projects that involve
  2. Cost-reimbursement contracts are most appropriate for projects that involve
  3. Cost-reimbursement contracts are most appropriate for projects that involve

 

  1. The win ratio approach gives
    1. equal weight to proposals with larger dollar
    2. more weight to proposals with larger dollar
    3. equal weight to all
    4. less weight to proposals with larger dollar

 

ANSWER:       c

FEEDBACK:  a. The win ratio approach gives equal weight to all proposals.

  1. The win ratio approach gives equal weight to all
  2. The win ratio approach gives equal weight to all
  3. The win ratio approach gives equal weight to all

 

  1. Total dollar value approach gives
    1. equal weight to proposals with larger dollar
    2. more weight to proposals with larger dollar
    3. equal weight to all
    4. less weight to proposals with larger dollar

 

ANSWER:       b

FEEDBACK:  a. Total dollar value approach gives more weight to proposals with larger dollar amounts.

  1. Total dollar value approach gives more weight to proposals with larger dollar
  2. Total dollar value approach gives more weight to proposals with larger dollar
  3. Total dollar value approach gives more weight to proposals with larger dollar

 

  1. Contractors seriously consider the bid/no-bid decision process in responding to RFPs and submit fewer proposals but attempt to have
    1. a high win
    2. less work to do for
    3. the same number of subcontractors and
    4. consensus on

 

ANSWER:       a

FEEDBACK:  a. Contractors seriously consider the bid/no-bid decision process in responding to RFPs and submit fewer proposals but attempt to have a high win ratio.

  1. Contractors seriously consider the bid/no-bid decision process in responding to RFPs and submit fewer proposals but attempt to have a high win
  2. Contractors seriously consider the bid/no-bid decision process in responding to RFPs and submit fewer proposals but attempt to have a high win
  3. Contractors seriously consider the bid/no-bid decision process in responding to RFPs and submit fewer proposals but attempt to have a high win

 

  1. Describe the differences between a complex proposal and a simplified

 

ANSWER:  Responses will vary. They should contain a description of a complex project proposal and a simplified project proposal. All the minimum parts of a simplified project proposal are included in a complex project proposal, but not all complex project proposal sections are included in a simplified project proposal.

 

A complex project proposal may contain hundreds of pages with charts, graphs, and tables to display the technical, management, and cost sections. The complex proposal may be in sections or volumes for organization. A simplified project proposal will include at a minimum a statement of the customer’s need, assumptions, project scope, deliverables, schedule, price, risks, and expected benefits.

 

  1. Describe at least three criteria that a customer could use to evaluate a contractor’s

 

ANSWER:  Responses will vary. Answers should describe at least three of the following: compliance, understanding of need, soundness and practicality of the proposed solution, experience, realism of the schedule, price, benefit to organization, and value.

 

Customers evaluate contractors’ proposals in many different ways.

 

 

  1. It is good practice to have the person who will be responsible for the costs associated with the work make the cost
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   It is good practice to have the person who will be responsible for the costs associated with the work make the cost estimates.

Incorrect   It is good practice to have the person who will be responsible for the costs associated with the work make the cost estimates.

 

  1. Historical data can be used as a guide on the current
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Historical data can be used as a guide on the current project.

Incorrect  Historical data can be used as a guide on the current project.

 

  1. Cost estimates should be unreasonable and
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   Cost estimates should be reasonable and realistic.

Incorrect Cost estimates should be reasonable and realistic.

 

  1. In many projects, large dollar amounts are expended for materials or services (subcontractors, consultants) that are used over a period of time longer than one cost reporting
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   In many projects, large dollar amounts are expended for materials or services (subcontractors, consultants) that are used over a period of time longer than one cost reporting period.

Incorrect   In many projects, large dollar amounts are expended for materials or services (subcontractors, consultants) that are used over a period of time longer than one cost reporting period.

 

 

 

  1. Committed costs are also known as discharged or postponed
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   Committed costs are also known as commitments or encumbered costs.

Incorrect Committed costs are also known as commitments or encumbered costs.

 

  1. Cumulative actual cost (CAC) should be calculated to compare to the cumulative budgeted cost (CBC).
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   Cumulative actual cost (CAC) should be calculated to compare to the cumulative budgeted cost (CBC).

Incorrect   Cumulative actual cost (CAC) should be calculated to compare to the cumulative budgeted cost (CBC).

 

  1. The percent complete estimate for a work package is subjective and requires an underestimated guess compared to the scope of the work
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   The percent complete estimate for a work package is subjective and requires an honest assessment compared to the scope of the work package.

Incorrect   The percent complete estimate for a work package is subjective and requires an honest assessment compared to the scope of the work package.

 

  1. When the CPI goes below 0 or gradually gets smaller, corrective action should not be taken, the project is performing well.
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   When the CPI goes below 1.0 or gradually gets smaller, corrective action should be taken.

Incorrect  When the CPI goes below 1.0 or gradually gets smaller, corrective action should be   taken.

 

 

 

  1. Based on analysis of actual cost it is possible to forecast what the total costs will be at the completion of the project or work
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct  Based on analysis of actual cost it’s possible to forecast what the total costs will be at the completion of the project or work package.

Incorrect Based on analysis of actual cost it’s possible to forecast what the total costs will be at the completion of the project or work package.

 

  1. The key to effective cost control is to analyze cost performance on a regular and timely
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   The key to effective cost control is to analyze cost performance on a regular and timely basis.

Incorrect The key to effective cost control is to analyze cost performance on a regular and timely basis.

  1. If you put off corrective actions until some point in the distant future, the negative cost variance may deteriorate in the
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   If you put off corrective actions until some point in the distant future, the negative cost variance may deteriorate.

Incorrect   If you put off corrective actions until some point in the distant future, the negative cost variance may deteriorate.

 

  1. In many cases, there will be a tradeoff, reducing cost variances will involve a reduction in project scope or a delay in the project
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   In many cases, there will be a tradeoff, reducing cost variances will involve a reduction in project scope or a delay in the project schedule.

Incorrect   In many cases, there will be a tradeoff, reducing cost variances will involve a reduction in project scope or a delay in the project schedule.

 

 

 

  1. The key to effective cost control is waiting to address negative cost variances and cost inefficiencies after they are
    1. True
    2. False

 

ANSWER:       False

FEEDBACK:  Correct   The key to effective cost control is aggressively addressing negative cost variances and cost inefficiencies as soon as they are identified.

Incorrect   The key to effective cost control is aggressively addressing negative cost variances and cost inefficiencies as soon as they are identified.

 

  1. It is important to manage the cash flow on a
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   It is important to manage the cash flow on a project.

Incorrect  It is important to manage the cash flow on a project.

 

  1. The key to managing cash flow is to ensure that cash comes in faster than it goes
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct   The key to managing cash flow is to ensure that cash comes in faster than it goes out.

Incorrect The key to managing cash flow is to ensure that cash comes in faster than it goes out.

  1. The worst scenario from the contractor’s point of view is to have the customer make only one payment at the end of the
    1. True
    2. False

 

ANSWER:       True

FEEDBACK:  Correct  The worst scenario from the contractor’s point of view is to have the customer make only one payment at the end of the project.

Incorrect The worst scenario from the contractor’s point of view is to have the customer make only one payment at the end of the project.

 

 

 

  1. The total project cost is often estimated during the phase of the project or when the project charter or a proposal is prepared
    1. initiating
    2. planning
    3. performing
    4. closing

 

ANSWER:       a

FEEDBACK:  a. The total project cost is often estimated during the initiating phase of the project or when the project charter or a proposal is prepared.

  1. The total project cost is often estimated during the initiating phase of the project or when the project charter or a proposal is
  2. The total project cost is often estimated during the initiating phase of the project or when the project charter or a proposal is
  3. The total project cost is often estimated during the initiating phase of the project or when the project charter or a proposal is

 

  1. Labor costs in the project costs estimate are the estimated costs for the various types or classifications of

and are based on the estimated work time (not necessarily the same as the activity estimated duration) and the dollar labor rate for each.

  1. people who are expected to work on the project
  2. people, even if they are not directly assigned to the project
  3. overhead and direct expenses
  4. subcontractors

 

ANSWER:       a

FEEDBACK:  a. Labor costs in the project costs estimate are estimated costs for the various types or classifications of people who are expected to work on the project and are based on the estimated work time (not necessarily the same as the activity estimated duration) and the dollar labor rate for each person or classification.

  1. Labor costs in the project costs estimate are estimated costs for the various types or classifications of people who are expected to work on the project and are based on the estimated work time (not necessarily the same as the activity estimated duration) and the dollar labor rate for each person or
  2. Labor costs in the project costs estimate are estimated costs for the various types or classifications of people who are expected to work on the project and are based on the estimated work time (not necessarily the same as the activity estimated duration) and the dollar labor rate for each person or
  3. Labor costs in the project costs estimate are estimated costs for the various types or classifications of people who are expected to work on the project and are based on the estimated work time (not necessarily the same as the activity estimated duration) and the dollar labor rate for each person or

 

 

 

  1. Materials costs in the project costs estimate are the estimated costs of materials that the project team or contractor
    1. want to have in supply in the
    2. needs even if not for this particular
    3. needs to purchase for the
    4. might want to use on the

 

ANSWER:       c

FEEDBACK:  a. Materials costs in the project costs estimate are the estimated costs of materials that the project team or contractor needs to purchase for the project.

  1. Materials costs in the project costs estimate are the estimated costs of materials that the project team or contractor needs to purchase for the
  2. Materials costs in the project costs estimate are the estimated costs of materials that the project team or contractor needs to purchase for the
  3. Materials costs in the project costs estimate are the estimated costs of materials that the project team or contractor needs to purchase for the

 

  1. Equipment costs in the project costs estimate are for equipment
    1. that the organization wants to
    2. that is the latest upgrade, even if not needed for the
    3. that must be purchased as part of the
    4. needed by others in the organization that may not be assigned to the

 

ANSWER:       c

FEEDBACK:  a. Equipment costs in the project costs estimate are for equipment that must be purchased as part of the project.

  1. Equipment costs in the project costs estimate are for equipment that must be purchased as part of the
  2. Equipment costs in the project costs estimate are for equipment that must be purchased as part of the
  3. Equipment costs in the project costs estimate are for equipment that must be purchased as part of the

 

 

 

  1. Facilities costs in the project costs estimate are for
    1. general facilities for the project
    2. special facilities or additional space for the project
    3. special facilities or additional space for the organization where other projects will be in
    4. storage of materials even if not for the

 

ANSWER:       b

FEEDBACK:  a. Facilities costs in the project costs estimate are for special facilities or additional space for the project team, for security reasons, to store materials, or to build, assemble, and test the project end item (deliverable).

  1. Facilities costs in the project costs estimate are for special facilities or additional space for the project team, for security reasons, to store materials, or to build, assemble, and test the project end item (deliverable).
  2. Facilities costs in the project costs estimate are for special facilities or additional space for the project team, for security reasons, to store materials, or to build, assemble, and test the project end item (deliverable).
  3. Facilities costs in the project costs estimate are for special facilities or additional space for the project team, for security reasons, to store materials, or to build, assemble, and test the project end item (deliverable).

 

  1. Costs related to are for outsourced work when the project teams or contractors do not have the expertise or resources to do certain project
    1. benefactors and suppliers
    2. stakeholders
    3. reserve and withholding
    4. subcontractors and consultants

 

ANSWER:       d

FEEDBACK:  a. Subcontractors and consultants are outsourced for a project when project teams or contractors do not have the expertise or resources to do certain project tasks.

  1. Subcontractors and consultants are outsourced for a project when project teams or contractors do not have the expertise or resources to do certain project
  2. Subcontractors and consultants are outsourced for a project when project teams or contractors do not have the expertise or resources to do certain project
  3. Subcontractors and consultants are outsourced for a project when project teams or contractors do not have the expertise or resources to do certain project

 

 

 

  1. Travel costs in the project costs estimate are for
    1. travel (other than local travel) required during the
    2. all travel by the
    3. travel costs for local
    4. travel for conferences that may not be related to the

 

ANSWER:       a

FEEDBACK:  a. Travel costs in the project costs estimate are for travel (other than local travel) required during the project.

  1. Travel costs in the project costs estimate are for travel (other than local travel) required during the
  2. Travel costs in the project costs estimate are for travel (other than local travel) required during the
  3. Travel costs in the project costs estimate are for travel (other than local travel) required during the

 

  1. Contingency costs in the project costs estimate, also referred to as , are to cover unexpected situations that may come up during the project, such as items that may have been overlooked when the initial project scope was defined, activities that may have to be redone because they may not work the first time (redesigns), or a high probability or high impact risk that may
    1. auxiliary funds
    2. withholding
    3. reserves
    4. capital funds

 

ANSWER:       c

FEEDBACK:  a. Contingency costs in the project costs estimate, also referred to as reserves, are to cover unexpected situations that may come up during the project, such as items that may have been overlooked when the initial project scope was defined, activities that may have to be redone because they may not work the first time (redesigns), or a high probability or high impact risk that may occur.

  1. Contingency costs in the project costs estimate, also referred to as reserves, are to cover unexpected situations that may come up during the project, such as items that may have been overlooked when the initial project scope was defined, activities that may have to be redone because they may not work the first time (redesigns), or a high probability or high impact risk that may
  2. Contingency costs in the project costs estimate, also referred to as reserves, are to cover unexpected situations that may come up during the project, such as items that may have been overlooked when the initial project scope was defined, activities that may have to be redone because they may not work the first time (redesigns), or a high probability or high impact risk that may
  3. Contingency costs in the project costs estimate, also referred to as reserves, are to cover unexpected situations that may come up during the project, such as items that may have been overlooked when the initial project scope was defined, activities that may have to be redone because they may not work the first time (redesigns), or a high probability or high impact risk that may

 

 

 

  1. At the beginning of the project, it may not be possible to estimate the costs for all activities with a level of confidence regarding their accuracy. This is especially true for
    1. projects with a short
    2. longer-term
    3. projects that are similar to ones completed by the organization
    4. projects with activities that are serially

 

ANSWER:       b

FEEDBACK:  a. At the beginning of the project, it may not be possible to estimate the costs for all activities with a level of confidence regarding their accuracy. This is especially true for longer-term projects.

  1. At the beginning of the project, it may not be possible to estimate the costs for all activities with a level of confidence regarding their accuracy. This is especially true for longer-term
  2. At the beginning of the project, it may not be possible to estimate the costs for all activities with a level of confidence regarding their accuracy. This is especially true for longer-term
  3. At the beginning of the project, it may not be possible to estimate the costs for all activities with a level of confidence regarding their accuracy. This is especially true for longer-term

 

  1. It may be easier to estimate the costs for , but as the project progresses, the project team can progressively elaborate the estimated costs as more information is known or becomes clear to allow for more accurate estimated
    1. near-term activities
    2. activities near the end of the project
    3. new activities with new procedures
    4. activities with long durations

 

ANSWER:       a

FEEDBACK:  a. It may be easier to estimate the costs for near-term activities, but as the project progresses, the project team can progressively elaborate the estimated costs as more information is known or becomes clear to allow for more accurate estimated costs.

  1. It may be easier to estimate the costs for near-term activities, but as the project progresses, the project team can progressively elaborate the estimated costs as more information is known or becomes clear to allow for more accurate estimated
  2. It may be easier to estimate the costs for near-term activities, but as the project progresses, the project team can progressively elaborate the estimated costs as more information is known or becomes clear to allow for more accurate estimated
  3. It may be easier to estimate the costs for near-term activities, but as the project progresses, the project team can progressively elaborate the estimated costs as more information is known or becomes clear to allow for more accurate estimated

 

 

 

  1. The project cost estimate is allocated to
    1. the various work packages in the project work breakdown
    2. the resources in the
    3. the committed costs in the
    4. the

 

ANSWER:       a

FEEDBACK:  a. The project cost estimate is allocated to the various work packages in the project work breakdown structure.

  1. The project cost estimate is allocated to the various work packages in the project work breakdown
  2. The project cost estimate is allocated to the various work packages in the project work breakdown
  3. The project cost estimate is allocated to the various work packages in the project work breakdown

 

  1. The budget for each work package is
    1. charged completely on the first day of the work
    2. charged at the end of the
    3. distributed over the duration of the work
    4. charged completely on the last day of the work

 

ANSWER:       c

FEEDBACK:  a. The budget for each work package is distributed over the duration of the work package.

  1. The budget for each work package is distributed over the duration of the work
  2. The budget for each work package is distributed over the duration of the work
  3. The budget for each work package is distributed over the duration of the work

 

  1. Allocating total project costs for the various elements to the appropriate work packages will establish
    1. the committed costs for the work
    2. the anticipated expense for the work
    3. how to apply resources to the work
    4. a total budgeted cost (TBC) for each work

 

ANSWER:       d

FEEDBACK:  a. Allocating total project costs for the various elements to the appropriate work packages will establish a total budgeted cost (TBC) for each work package.

  1. Allocating total project costs for the various elements to the appropriate work packages will establish a total budgeted cost (TBC) for each work
  2. Allocating total project costs for the various elements to the appropriate work packages will establish a total budgeted cost (TBC) for each work
  3. Allocating total project costs for the various elements to the appropriate work packages will establish a total budgeted cost (TBC) for each work

 

 

 

  1. There are two approaches to establishing the total budgeted cost for each work package:
    1. top-down and bottom-up.
    2. horizontal and
    3. committed and
    4. aggregated and

 

ANSWER:       a

FEEDBACK:  a. There are two approaches to establishing the TBC for each work package: top-down and bottom-up.

  1. There are two approaches to establishing the TBC for each work package: top-down and bottom-up.
  2. There are two approaches to establishing the TBC for each work package: top-down and bottom-up.
  3. There are two approaches to establishing the TBC for each work package: top-down and bottom-up.

 

  1. Often, the sum of the initial estimated costs is greater than the amount of funds budgeted by the sponsor. What should be done to arrive at an acceptable budget amount?
    1. Cut the cost of the highest priced activity in half until the budget is
    2. Trade experienced and efficient resources for less experienced and less efficient
    3. Revise the budget expecting that several iterations may need to be made to reduce the
    4. Extend the scope of the

 

ANSWER:       c

FEEDBACK:  a. Often, the sum of the initial estimated costs is greater than the amount of funds budgeted by the sponsor. Several iterations may need to be made to reduce the costs.

  1. Often, the sum of the initial estimated costs is greater than the amount of funds budgeted by the sponsor. Several iterations may need to be made to reduce the
  2. Often, the sum of the initial estimated costs is greater than the amount of funds budgeted by the sponsor. Several iterations may need to be made to reduce the
  3. Often, the sum of the initial estimated costs is greater than the amount of funds budgeted by the sponsor. Several iterations may need to be made to reduce the

 

 

 

  1. When the budgets for all the work packages are summed,
    1. they should exceed the amount of funds
    2. they cannot exceed the total project budgeted
    3. if the total is too high then the amounts should be force-fitted into the customer’s
    4. if the total is too low then extra non-project expenses should be

 

ANSWER:       b

FEEDBACK:  a. When the budgets for all the work packages are summed, they cannot exceed the total project budgeted cost.

  1. When the budgets for all the work packages are summed, they cannot exceed the total project budgeted
  2. When the budgets for all the work packages are summed, they cannot exceed the total project budgeted
  3. When the budgets for all the work packages are summed, they cannot exceed the total project budgeted

 

  1. Once a total budgeted cost has been established for each work package, the second step in the project budgeting process is to
    1. assign each TBC at the start of its work
    2. assign each TBC at the end of its work
    3. distribute each TBC over the project by dividing the total by the number of work packages and assigning that amount to
    4. distribute each TBC over the duration of its work

 

ANSWER:       d

FEEDBACK:  a. Once a total budgeted cost has been established for each work package, the second step in the project budgeting process is to distribute each TBC over the duration of its work package.

  1. Once a total budgeted cost has been established for each work package, the second step in the project budgeting process is to distribute each TBC over the duration of its work
  2. Once a total budgeted cost has been established for each work package, the second step in the project budgeting process is to distribute each TBC over the duration of its work
  3. Once a total budgeted cost has been established for each work package, the second step in the project budgeting process is to distribute each TBC over the duration of its work

 

 

 

  1. A cost is determined for each period, based on when the activities that make up the work package are scheduled to be performed, to create
    1. the time-phased
    2. the actual costs of the
    3. an example
    4. an adjusted

 

ANSWER:       a

FEEDBACK:  a. A cost is determined for each period, based on when the activities that make up the work package are scheduled to be performed to create the time-phased budget.

  1. A cost is determined for each period, based on when the activities that make up the work package are scheduled to be performed to create the time-phased
  2. A cost is determined for each period, based on when the activities that make up the work package are scheduled to be performed to create the time-phased
  3. A cost is determined for each period, based on when the activities that make up the work package are scheduled to be performed to create the time-phased

 

  1. The is the amount that was budgeted to accomplish the work that was scheduled to be performed up to that point in
    1. total budgeted cost (TBC)
    2. cumulative actual cost (CAC)
    3. cumulative budgeted cost (CBC)
    4. cumulative earned value (CEV)

 

ANSWER:       c

FEEDBACK:  a. The cumulative budgeted cost (CBC) is the amount that was budgeted to accomplish the work that was scheduled to be performed up to that point in time.

  1. The cumulative budgeted cost (CBC) is the amount that was budgeted to accomplish the work that was scheduled to be performed up to that point in
  2. The cumulative budgeted cost (CBC) is the amount that was budgeted to accomplish the work that was scheduled to be performed up to that point in
  3. The cumulative budgeted cost (CBC) is the amount that was budgeted to accomplish the work that was scheduled to be performed up to that point in

 

 

 

  1. The for the entire project or each work package provides a baseline against which actual cost and work performance can be compared at any time during the
    1. total budgeted cost (TBC)
    2. cumulative budgeted cost (CBC)
    3. cumulative earned value (CEV)
    4. cumulative actual cost (CAC)

 

ANSWER:       b

FEEDBACK:  a. The CBC for the entire project or each work package provides a baseline against which actual cost and work performance can be compared at any time during the project.

  1. The CBC for the entire project or each work package provides a baseline against which actual cost and work performance can be compared at any time during the
  2. The CBC for the entire project or each work package provides a baseline against which actual cost and work performance can be compared at any time during the
  3. The CBC for the entire project or each work package provides a baseline against which actual cost and work performance can be compared at any time during the

 

  1. It is important to use the as the standard against which actual cost is
    1. cumulative budget
    2. total budget
    3. budget at completion
    4. phased budget

 

ANSWER:       a

FEEDBACK:  a. It is important to use the cumulative budget as the standard against which actual cost is compared.

  1. It is important to use the cumulative budget as the standard against which actual cost is
  2. It is important to use the cumulative budget as the standard against which actual cost is
  3. It is important to use the cumulative budget as the standard against which actual cost is

 

 

 

  1. To keep track of , it’s necessary to set up a system to collect, on a regular and timely basis, data on funds

actually expended.

  1. budgeted cost of work scheduled
  2. planned cost of the project
  3. actual cost on a project
  4. budgeted cost of work performed

 

ANSWER:       c

FEEDBACK:  a. To keep track of actual cost on a project, it’s necessary to set up a system to collect, on a

regular and timely basis, data on funds actually expended.

  1. To keep track of actual cost on a project, it’s necessary to set up a system to collect, on a

regular and timely basis, data on funds actually expended.

  1. To keep track of actual cost on a project, it’s necessary to set up a system to collect, on a

regular and timely basis, data on funds actually expended.

  1. To keep track of actual cost on a project, it’s necessary to set up a system to collect, on a

regular and timely basis, data on funds actually expended.

 

  1. Large projects would have charge codes for the work package numbers to
    1. have a place for other projects to charge
    2. determine how the actual costs compare to the planned
    3. have resources be able to determine what tasks they should
    4. allow for cutting of the budget for the activities if need to cut the

 

ANSWER:       b

FEEDBACK:  a. Large projects would have charge codes for the work package numbers to determine how the actual costs compare to the planned costs.

  1. Large projects would have charge codes for the work package numbers to determine how the actual costs compare to the planned
  2. Large projects would have charge codes for the work package numbers to determine how the actual costs compare to the planned
  3. Large projects would have charge codes for the work package numbers to determine how the actual costs compare to the planned

 

 

 

  1. Committed costs need to be treated in a special way so that the system
    1. audits the amounts
    2. periodically assigns a portion of their total cost to actual
    3. enters the amount of the cost one time at the end of the
    4. enters the amount of the cost one time at the beginning of the

 

ANSWER:       b

FEEDBACK:  a. Committed costs need to be treated in a special way so that the system periodically assigns a portion of their total cost to actual cost.

  1. Committed costs need to be treated in a special way so that the system periodically assigns a portion of their total cost to actual
  2. Committed costs need to be treated in a special way so that the system periodically assigns a portion of their total cost to actual
  3. Committed costs need to be treated in a special way so that the system periodically assigns a portion of their total cost to actual

 

  1. Costs are when an item is ordered even though actual payment may take place at some later
    1. discharged
    2. committed
    3. postponed
    4. restrained

 

ANSWER:       b

FEEDBACK:  a. Costs are committed when an item is ordered even though actual payment may take place at some later time.

  1. Costs are committed when an item is ordered even though actual payment may take place at some later
  2. Costs are committed when an item is ordered even though actual payment may take place at some later
  3. Costs are committed when an item is ordered even though actual payment may take place at some later

 

 

 

  1. As data are collected on , including portions of any committed cost, they need to be totaled by work package so that they can be compared to the    
    1. planned cost, total budgeted
    2. budgeted cost of work scheduled, actual cost of work
    3. actual cost, cumulative budgeted
    4. cumulative earned value, total budgeted

 

ANSWER:       c

FEEDBACK:  a. As data are collected on actual cost, including portions of any committed cost, they need to be totaled by work package so that they can be compared to the cumulative budgeted cost.

  1. As data are collected on actual cost, including portions of any committed cost, they need to be totaled by work package so that they can be compared to the cumulative budgeted
  2. As data are collected on actual cost, including portions of any committed cost, they need to be totaled by work package so that they can be compared to the cumulative budgeted
  3. As data are collected on actual cost, including portions of any committed cost, they need to be totaled by work package so that they can be compared to the cumulative budgeted

 

  1. Earned value, the value of , is a key parameter that must be determined throughout the
    1. the work scheduled
    2. the resources used
    3. the resources assigned
    4. the work actually performed

 

ANSWER:       d

FEEDBACK:  a. Earned value, the value of the work actually performed, is a key parameter that must be determined throughout the project.

  1. Earned value, the value of the work actually performed, is a key parameter that must be determined throughout the
  2. Earned value, the value of the work actually performed, is a key parameter that must be determined throughout the
  3. Earned value, the value of the work actually performed, is a key parameter that must be determined throughout the

 

 

  1. Determining the earned value involves collecting data on the percent complete for each work package and then converting this percentage to a dollar amount by multiplying the of the work package by the percent
    1. total budgeted cost (TBC)
    2. cumulative budgeted cost (CBC)
    3. cumulative earned value (CEV)
    4. cumulative actual cost (CAC)

 

ANSWER:       a

FEEDBACK:  a. Determining the earned value involves collecting data on the percent complete for each work package and then converting this percentage to a dollar amount by multiplying the TBC of the work package by the percent complete.

  1. Determining the earned value involves collecting data on the percent complete for each work package and then converting this percentage to a dollar amount by multiplying the TBC of the work package by the percent
  2. Determining the earned value involves collecting data on the percent complete for each work package and then converting this percentage to a dollar amount by multiplying the TBC of the work package by the percent
  3. Determining the earned value involves collecting data on the percent complete for each work package and then converting this percentage to a dollar amount by multiplying the TBC of the work package by the percent

 

  1. It’s important that the person estimating the percent complete not only assess how much work has been performed but also consider
    1. what work should have been
    2. what work remains to be
    3. what work others have to do on other
    4. the cost of the

 

ANSWER:       b

FEEDBACK:  a. It’s important that the person estimating the percent complete not only assess how much work

has been performed but also consider what work remains to be done.

  1. It’s important that the person estimating the percent complete not only assess how much work

has been performed but also consider what work remains to be done.

  1. It’s important that the person estimating the percent complete not only assess how much work

has been performed but also consider what work remains to be done.

  1. It’s important that the person estimating the percent complete not only assess how much work

has been performed but also consider what work remains to be done.

 

 

  1. Consider a project that involves painting five similar houses over ten weeks (one house every two weeks) for a total budgeted cost of $20,000. The budget is $4,000 per house. At of the end of week 5, you determine that $10,000 has actually been spent and three houses have been painted What is the earned value of the project?
  2. a. $10,000
  3. $12,000
  4. c. $4,000
  5. $20,000

 

ANSWER:       b

FEEDBACK:  a. Consider a project that involves painting five similar houses over ten weeks (one house every two weeks) for a total budgeted cost of $20,000. The budget is $4,000 per house. At of the end of week 4, you determine that $10,000 has actually been spent and three houses have been painted completely. The earned value is (3/5) × $20,000 = $12,000.

  1. Consider a project that involves painting five similar houses over ten weeks (one house every two weeks) for a total budgeted cost of $20,000. The budget is $4,000 per house. At of the end of week 4, you determine that $10,000 has actually been spent and three houses have been painted completely. The earned value is (3/5) × $20,000 = $12,000.
  2. Consider a project that involves painting five similar houses over ten weeks (one house every two weeks) for a total budgeted cost of $20,000. The budget is $4,000 per house. At of the end of week 4, you determine that $10,000 has actually been spent and three houses have been painted completely. The earned value is (3/5) × $20,000 = $12,000.
  3. Consider a project that involves painting five similar houses over ten weeks (one house every two weeks) for a total budgeted cost of $20,000. The budget is $4,000 per house. At of the end of week 4, you determine that $10,000 has actually been spent and three houses have been painted completely. The earned value is (3/5) × $20,000 = $12,000.

 

  1. The is the sum of the estimated costs of all the specific activities that make up a work package or the
    1. total budgeted cost (TBC)
    2. cumulative budgeted cost (CBC)
    3. cumulative actual cost (CAC)
    4. cumulative earned value (CEV)

 

ANSWER:       a

FEEDBACK:  a. The TBC is the sum of the estimated costs of all the specific activities that make up a work package or the project.

  1. The TBC is the sum of the estimated costs of all the specific activities that make up a work package or the
  2. The TBC is the sum of the estimated costs of all the specific activities that make up a work package or the
  3. The TBC is the sum of the estimated costs of all the specific activities that make up a work package or the

 

 

  1. The is the amount that was budgeted to accomplish the work that was schedule to be performed up to that point in
    1. total budgeted cost (TBC)
    2. cumulative budgeted cost (CBC)
    3. cumulative actual cost (CAC)
    4. cumulative earned value (CEV)

 

ANSWER:       b

FEEDBACK:  a. The CBC is the amount that was budgeted to accomplish the work that was schedule to be performed up to that point in time.

  1. The CBC is the amount that was budgeted to accomplish the work that was schedule to be performed up to that point in
  2. The CBC is the amount that was budgeted to accomplish the work that was schedule to be performed up to that point in
  3. The CBC is the amount that was budgeted to accomplish the work that was schedule to be performed up to that point in

 

  1. The is the amount that was actually spent to accomplish the work that was scheduled to be performed up to that point in
    1. total budgeted cost (TBC)
    2. cumulative budgeted cost (CBC)
    3. cumulative actual cost (CAC)
    4. cumulative earned value (CEV)

 

ANSWER:       c

FEEDBACK:  a. The CAC is the amount that was actually spent to accomplish the work that was scheduled to be performed up to that point in time.

  1. The CAC is the amount that was actually spent to accomplish the work that was scheduled to be performed up to that point in
  2. The CAC is the amount that was actually spent to accomplish the work that was scheduled to be performed up to that point in
  3. The CAC is the amount that was actually spent to accomplish the work that was scheduled to be performed up to that point in

 

 

 

  1. The is the product of the percent complete and the sum of the estimated costs of all the specific activities that make up a work package or the
    1. total budgeted cost (TBC)
    2. cumulative budgeted cost (CBC)
    3. cumulative actual cost (CAC)
    4. cumulative earned value (CEV)

 

ANSWER:       d

FEEDBACK:  a. The CEV is the product of the percent complete and the sum of the estimated costs of all the specific activities that make up a work package or the project.

  1. The CEV is the product of the percent complete and the sum of the estimated costs of all the specific activities that make up a work package or the
  2. The CEV is the product of the percent complete and the sum of the estimated costs of all the specific activities that make up a work package or the
  3. The CEV is the product of the percent complete and the sum of the estimated costs of all the specific activities that make up a work package or the

 

  1. Plot curves on the same graph to reveal any trends toward improving or deteriorating cost
    1. AC, TBC, EV
    2. actual cost and budgeted cost
    3. CBC, CAC, and CEV
    4. CBC, PV, and BCWS

 

ANSWER:       c

FEEDBACK:  a. Plot CBC, CAC, and CEV curves on the same graph to reveal any trends toward improving or deteriorating cost performance.

  1. Plot CBC, CAC, and CEV curves on the same graph to reveal any trends toward improving or deteriorating cost
  2. Plot CBC, CAC, and CEV curves on the same graph to reveal any trends toward improving or deteriorating cost
  3. Plot CBC, CAC, and CEV curves on the same graph to reveal any trends toward improving or deteriorating cost

 

 

  1. The cost performance index (CPI) is a measure of the cost efficiency with which the project is being performed. If the cumulative earned value is greater than the cumulative actual costs, then
    1. the CPI is greater than 0.
    2. the CPI is less than 0.
    3. CPI cannot be determined with CEV and
    4. the CPI is

 

ANSWER:       a

FEEDBACK:  a. The cost performance index (CPI) is a measure of the cost efficiency with which the project is being performed. The formula for determining the CPI is Cost performance index = Cumulative earned value/Cumulative actual cost CPI = CEV/CAC.

  1. The cost performance index (CPI) is a measure of the cost efficiency with which the project is being performed. The formula for determining the CPI is Cost performance index = Cumulative earned value/Cumulative actual cost CPI = CEV/CAC.
  2. The cost performance index (CPI) is a measure of the cost efficiency with which the project is being performed. The formula for determining the CPI is Cost performance index = Cumulative earned value/Cumulative actual cost CPI = CEV/CAC.
  3. The cost performance index (CPI) is a measure of the cost efficiency with which the project is being performed. The formula for determining the CPI is Cost performance index = Cumulative earned value/Cumulative actual cost CPI = CEV/CAC.

 

  1. If the cumulative earned value is $10 and the cumulative actual costs are $20, then the CPI is
  2. a. $10.
  3. -$10.
  4. 5.
  5. 0.

 

ANSWER:       c

FEEDBACK:  a. The cost performance index (CPI) is a measure of the cost efficiency with which the project is being performed. The formula for determining the CPI is Cost performance index = Cumulative earned value/Cumulative actual cost CPI = CEV/CAC.

  1. The cost performance index (CPI) is a measure of the cost efficiency with which the project is being performed. The formula for determining the CPI is Cost performance index = Cumulative earned value/Cumulative actual cost CPI = CEV/CAC.
  2. The cost performance index (CPI) is a measure of the cost efficiency with which the project is being performed. The formula for determining the CPI is Cost performance index = Cumulative earned value/Cumulative actual cost CPI = CEV/CAC.
  3. The cost performance index (CPI) is a measure of the cost efficiency with which the project is being performed. The formula for determining the CPI is Cost performance index = Cumulative earned value/Cumulative actual cost CPI = CEV/CAC.

 

 

 

  1. Another indicator of cost performance is cost variance (CV). If the cumulative earned value is greater than the cumulative actual costs, then
    1. the CV is
    2. the CV is equal to the
    3. CV cannot be determined with CEV and
    4. the CV is

 

ANSWER:       a

FEEDBACK:  a. Another indicator of cost performance is cost variance (CV), which is the difference between the cumulative earned value of the work performed and the cumulative actual cost. Cost variance = Cumulative earned value – Cumulative actual cost CV = CEV – CAC.

  1. Another indicator of cost performance is cost variance (CV), which is the difference between the cumulative earned value of the work performed and the cumulative actual cost. Cost variance = Cumulative earned value – Cumulative actual cost CV = CEV –
  2. Another indicator of cost performance is cost variance (CV), which is the difference between the cumulative earned value of the work performed and the cumulative actual cost. Cost variance = Cumulative earned value – Cumulative actual cost CV = CEV –
  3. Another indicator of cost performance is cost variance (CV), which is the difference between the cumulative earned value of the work performed and the cumulative actual cost. Cost variance = Cumulative earned value – Cumulative actual cost CV = CEV –

 

  1. Calculate the cost variance if the cumulative earned value is $10 and the cumulative actual costs are $20. a. $10
  2. -$10
  3. 5
  4. 0

 

ANSWER:       b

FEEDBACK:  a. Another indicator of cost performance is cost variance (CV), which is the difference between the cumulative earned value of the work performed and the cumulative actual cost. Cost variance = Cumulative earned value – Cumulative actual cost CV = CEV – CAC.

  1. Another indicator of cost performance is cost variance (CV), which is the difference between the cumulative earned value of the work performed and the cumulative actual cost. Cost variance = Cumulative earned value – Cumulative actual cost CV = CEV –
  2. Another indicator of cost performance is cost variance (CV), which is the difference between the cumulative earned value of the work performed and the cumulative actual cost. Cost variance = Cumulative earned value – Cumulative actual cost CV = CEV –
  3. Another indicator of cost performance is cost variance (CV), which is the difference between the cumulative earned value of the work performed and the cumulative actual cost. Cost variance = Cumulative earned value – Cumulative actual cost CV = CEV –

 

 

 

  1. A method for calculating the forecasted cost at completion assumes that the work to be performed on the remaining portion of the project or work package will be done at the same rate of efficiency as the work performed so far. If the cost performance index is greater than 0, then
    1. the FCAC is greater than the
    2. the FCAC is less than the
    3. the FCAC cannot be calculated with
    4. additional information is needed to predict the

 

ANSWER:       b

FEEDBACK:  a. The first method for calculating the forecasted cost at completion assumes that the work to be performed on the remaining portion of the project or work package will be done at the same rate of efficiency as the work performed so far. Forecasted cost at completion = Total budgeted cost/Cost performance index.

  1. The first method for calculating the forecasted cost at completion assumes that the work to be performed on the remaining portion of the project or work package will be done at the same rate of efficiency as the work performed so far. Forecasted cost at completion = Total budgeted cost/Cost performance
  2. The first method for calculating the forecasted cost at completion assumes that the work to be performed on the remaining portion of the project or work package will be done at the same rate of efficiency as the work performed so far. Forecasted cost at completion = Total budgeted cost/Cost performance
  3. The first method for calculating the forecasted cost at completion assumes that the work to be performed on the remaining portion of the project or work package will be done at the same rate of efficiency as the work performed so far. Forecasted cost at completion = Total budgeted cost/Cost performance

 

 

 

  1. A second method for determining the forecasted cost at completion assumes that, regardless of the efficiency rate the project or work package has experienced in the past, the work to be performed on the remaining portion of the project or work package will be done according to budget. If the cumulative actual cost is greater than the cumulative earned value, then
    1. the FCAC is greater than the
    2. the FCAC is less than the
    3. the FCAC cannot be calculated with the values
    4. additional information is needed to predict the

 

ANSWER:       a

FEEDBACK:  a. A second method for determining the forecasted cost at completion assumes that, regardless of the efficiency rate the project or work package has experienced in the past, the work to be performed on the remaining portion of the project or work package will be done according to budget. Forecasted cost at completion = Cumulative actual cost + (Total budgeted cost – Cumulative earned value).

  1. A second method for determining the forecasted cost at completion assumes that, regardless of the efficiency rate the project or work package has experienced in the past, the work to be performed on the remaining portion of the project or work package will be done according to budget. Forecasted cost at completion = Cumulative actual cost + (Total budgeted cost – Cumulative earned value).
  2. A second method for determining the forecasted cost at completion assumes that, regardless of the efficiency rate the project or work package has experienced in the past, the work to be performed on the remaining portion of the project or work package will be done according to budget. Forecasted cost at completion = Cumulative actual cost + (Total budgeted cost – Cumulative earned value).
  3. A second method for determining the forecasted cost at completion assumes that, regardless of the efficiency rate the project or work package has experienced in the past, the work to be performed on the remaining portion of the project or work package will be done according to budget. Forecasted cost at completion = Cumulative actual cost + (Total budgeted cost – Cumulative earned value).

 

 

 

  1. A third method for determining the forecasted cost at completion is to re-estimate the costs for all the remaining work to be performed and then add this re-estimate to the cumulative actual cost. If the amount of cumulated actual costs is less than difference between the total budgeted cost and the re-estimate, then
    1. the FCAC is greater than the
    2. the FCAC is less than the
    3. the FCAC cannot be calculated with the values
    4. additional information is needed to predict the

 

ANSWER:       b

FEEDBACK:  a. A third method for determining the forecasted cost at completion is to re-estimate the costs for all the remaining work to be performed and then add this re-estimate to the cumulative actual cost. FCAC = CAC + Re-estimate of remaining work to be performed.

  1. A third method for determining the forecasted cost at completion is to re-estimate the costs for all the remaining work to be performed and then add this re-estimate to the cumulative actual cost. FCAC = CAC + Re-estimate of remaining work to be
  2. A third method for determining the forecasted cost at completion is to re-estimate the costs for all the remaining work to be performed and then add this re-estimate to the cumulative actual cost. FCAC = CAC + Re-estimate of remaining work to be
  3. A third method for determining the forecasted cost at completion is to re-estimate the costs for all the remaining work to be performed and then add this re-estimate to the cumulative actual cost. FCAC = CAC + Re-estimate of remaining work to be

 

  1. Calculate the forecasted cost at completion if the total budgeted cost = $10,000, the CEV is $8,000, and the CAC is $4,000.
    1. FCAC = $5,000
    2. FCAC = $20,000
    3. FCAC = $6,000
    4. FCAC = $4,000

 

ANSWER:       a

FEEDBACK:  a. The first method for calculating the forecasted cost at completion assumes that the work to be performed on the remaining portion of the project or work package will be done at the same rate of efficiency as the work performed so far. Forecasted cost at completion = Total budgeted cost/Cost performance index.

  1. The first method for calculating the forecasted cost at completion assumes that the work to be performed on the remaining portion of the project or work package will be done at the same rate of efficiency as the work performed so far. Forecasted cost at completion = Total budgeted cost/Cost performance
  2. The first method for calculating the forecasted cost at completion assumes that the work to be performed on the remaining portion of the project or work package will be done at the same rate of efficiency as the work performed so far. Forecasted cost at completion = Total budgeted cost/Cost performance
  3. The first method for calculating the forecasted cost at completion assumes that the work to be performed on the remaining portion of the project or work package will be done at the same rate of efficiency as the work performed so far. Forecasted cost at completion = Total budgeted cost/Cost performance

 

 

  1. Calculate the forecasted cost at completion if the total budgeted cost is $15,000, the cumulative actual cost is

$10,000, and the cumulative earned value is $12,000.

  1. a. FCAC = $7,000
  2. FCAC = $17,000
  3. FCAC = $13,000
  4. FCAC = $37,000

 

ANSWER:       c

FEEDBACK:  a. A second method for determining the forecasted cost at completion assumes that, regardless of the efficiency rate the project or work package has experienced in the past, the work to be performed on the remaining portion of the project or work package will be done according to budget. Forecasted cost at completion = Cumulative actual cost + (Total budgeted cost – Cumulative earned value).

  1. A second method for determining the forecasted cost at completion assumes that, regardless of the efficiency rate the project or work package has experienced in the past, the work to be performed on the remaining portion of the project or work package will be done according to budget. Forecasted cost at completion = Cumulative actual cost + (Total budgeted cost – Cumulative earned value).
  2. A second method for determining the forecasted cost at completion assumes that, regardless of the efficiency rate the project or work package has experienced in the past, the work to be performed on the remaining portion of the project or work package will be done according to budget. Forecasted cost at completion = Cumulative actual cost + (Total budgeted cost – Cumulative earned value).
  3. A second method for determining the forecasted cost at completion assumes that, regardless of the efficiency rate the project or work package has experienced in the past, the work to be performed on the remaining portion of the project or work package will be done according to budget. Forecasted cost at completion = Cumulative actual cost + (Total budgeted cost – Cumulative earned value).

 

  1. Calculate the forecasted cost at completion if the cumulative actual cost is $10,000 and the re-estimate of remaining work to be performed is $5,000.
    1. FCAC = $5,000
    2. FCAC = $15,000
  2. FCAC = 2
  3. FCAC = 5

 

ANSWER:       b

FEEDBACK:  a. A third method for determining the forecasted cost at completion is to re-estimate the costs for all the remaining work to be performed and then add this re-estimate to the cumulative actual cost. FCAC = CAC + Re-estimate of remaining work to be performed.

  1. A third method for determining the forecasted cost at completion is to re-estimate the costs for all the remaining work to be performed and then add this re-estimate to the cumulative actual cost. FCAC = CAC + Re-estimate of remaining work to be
  2. A third method for determining the forecasted cost at completion is to re-estimate the costs for all the remaining work to be performed and then add this re-estimate to the cumulative actual cost. FCAC = CAC + Re-estimate of remaining work to be
  3. A third method for determining the forecasted cost at completion is to re-estimate the costs for all the remaining work to be performed and then add this re-estimate to the cumulative actual cost. FCAC = CAC + Re-estimate of remaining work to be

 

 

  1. It’s crucial that cost variances and inefficiencies be identified early so that
    1. corrective action can be taken before the situation gets
    2. negotiations can take place for the
    3. the project can be monitored for self-correction.
    4. time is not applied to the

 

ANSWER:       a

FEEDBACK:  a. It’s crucial that cost variances and inefficiencies be identified early so that corrective action

can be taken before the situation gets worse.

  1. It’s crucial that cost variances and inefficiencies be identified early so that corrective action

can be taken before the situation gets worse.

  1. It’s crucial that cost variances and inefficiencies be identified early so that corrective action

can be taken before the situation gets worse.

  1. It’s crucial that cost variances and inefficiencies be identified early so that corrective action

can be taken before the situation gets worse.

 

  1. involves the following: Analyzing cost performance to determine which work packages may require corrective action; Deciding what specific corrective action should be taken; and Revising the project plan, including time and cost estimates, to incorporate the planned corrective
    1. Resource analysis
    2. CPI monitoring
    3. Cost control
    4. Problem solving

 

ANSWER:       c

FEEDBACK:  a. Cost control involves the following: Analyzing cost performance to determine which work packages may require corrective action; Deciding what specific corrective action should be taken; and Revising the project plan, including time and cost estimates, to incorporate the planned corrective action.

  1. Cost control involves the following: Analyzing cost performance to determine which work packages may require corrective action; Deciding what specific corrective action should be taken; and Revising the project plan, including time and cost estimates, to incorporate the planned corrective
  2. Cost control involves the following: Analyzing cost performance to determine which work packages may require corrective action; Deciding what specific corrective action should be taken; and Revising the project plan, including time and cost estimates, to incorporate the planned corrective
  3. Cost control involves the following: Analyzing cost performance to determine which work packages may require corrective action; Deciding what specific corrective action should be taken; and Revising the project plan, including time and cost estimates, to incorporate the planned corrective

 

 

  1. When evaluating work packages that have a negative cost variance, you should focus on taking corrective actions to reduce the costs of:
    1. activities that will be performed in the near
    2. activities that will be performed in the towards the end of the
    3. activities that will be performed at the end of the
    4. all the activities in the

 

ANSWER:       a

FEEDBACK:  a. When evaluating work packages that have a negative cost variance, you should focus on taking corrective actions to reduce the costs of activities that will be performed in the near term. If you put off corrective actions until some point in the distant future, the negative cost variance may deteriorate.

  1. When evaluating work packages that have a negative cost variance, you should focus on taking corrective actions to reduce the costs of activities that will be performed in the near term. If you put off corrective actions until some point in the distant future, the negative cost variance may
  2. When evaluating work packages that have a negative cost variance, you should focus on taking corrective actions to reduce the costs of activities that will be performed in the near term. If you put off corrective actions until some point in the distant future, the negative cost variance may
  3. When evaluating work packages that have a negative cost variance, you should focus on taking corrective actions to reduce the costs of activities that will be performed in the near term. If you put off corrective actions until some point in the distant future, the negative cost variance may

 

  1. When evaluating work packages that have a negative cost variance, you should focus on taking corrective actions to reduce the costs of:
    1. activities that have a small cost
    2. activities that have a moderate cost
    3. activities that have a large cost
    4. all the activities in the

 

ANSWER:       c

FEEDBACK:  a. Focus on taking corrective actions to reduce the costs of activities that have a large cost estimate. Taking corrective measures that reduce the cost of a $20,000 activity by 10 percent will have a larger impact than totally eliminating a $300 activity.

  1. Focus on taking corrective actions to reduce the costs of activities that have a large cost estimate. Taking corrective measures that reduce the cost of a $20,000 activity by 10 percent will have a larger impact than totally eliminating a $300
  2. Focus on taking corrective actions to reduce the costs of activities that have a large cost estimate. Taking corrective measures that reduce the cost of a $20,000 activity by 10 percent will have a larger impact than totally eliminating a $300
  3. Focus on taking corrective actions to reduce the costs of activities that have a large cost estimate. Taking corrective measures that reduce the cost of a $20,000 activity by 10 percent will have a larger impact than totally eliminating a $300

 

 

  1. Which of the following is not a way to reduce the costs of activities:
    1. reduce the scope or
    2. substitute less expensive
    3. assign a person with less expertise or less experience to perform or help with the
    4. increase productivity through improved methods or

 

ANSWER:       c

FEEDBACK:  a. There are various ways to reduce the costs of activities: substitute less expensive materials, assign a person with greater expertise or more experience to perform or help with the activity, reduce the scope or requirements, and increase productivity through improved methods or technology.

  1. There are various ways to reduce the costs of activities: substitute less expensive materials, assign a person with greater expertise or more experience to perform or help with the activity, reduce the scope or requirements, and increase productivity through improved methods or
  2. There are various ways to reduce the costs of activities: substitute less expensive materials, assign a person with greater expertise or more experience to perform or help with the activity, reduce the scope or requirements, and increase productivity through improved methods or
  3. There are various ways to reduce the costs of activities: substitute less expensive materials, assign a person with greater expertise or more experience to perform or help with the activity, reduce the scope or requirements, and increase productivity through improved methods or

 

  1. Managing cash flow involves making sure that sufficient payments are received from the customer in time so that
    1. you have enough money to cover the costs of performing the
    2. you hold a reserve of funds instead of paying
    3. payroll can be paid and suppliers are delayed
    4. deposits can be made in several different

 

ANSWER:       a

FEEDBACK:  a. Managing cash flow involves making sure that sufficient payments are received from the customer in time so that you have enough money to cover the costs of performing the project.

  1. Managing cash flow involves making sure that sufficient payments are received from the customer in time so that you have enough money to cover the costs of performing the
  2. Managing cash flow involves making sure that sufficient payments are received from the customer in time so that you have enough money to cover the costs of performing the
  3. Managing cash flow involves making sure that sufficient payments are received from the customer in time so that you have enough money to cover the costs of performing the

 

 

  1. The contractor might try to negotiate payment terms that require the customer to do one or more of the following except
    1. provide frequent payments, such as weekly or monthly payments rather than quarterly
    2. make equal monthly payments based on the expected duration of the
    3. make a single payment at the end of the
    4. provide a down payment at the start of the

 

ANSWER:       c

FEEDBACK:  a. The contractor might try to negotiate payment terms that require the customer to do one or more of the following: provide a down payment at the start of the project; make equal monthly payments based on the expected duration of the project; provide frequent payments, such as weekly or monthly payments rather than quarterly payments.

  1. The contractor might try to negotiate payment terms that require the customer to do one or more of the following: provide a down payment at the start of the project; make equal monthly payments based on the expected duration of the project; provide frequent payments, such as weekly or monthly payments rather than quarterly
  2. The contractor might try to negotiate payment terms that require the customer to do one or more of the following: provide a down payment at the start of the project; make equal monthly payments based on the expected duration of the project; provide frequent payments, such as weekly or monthly payments rather than quarterly
  3. The contractor might try to negotiate payment terms that require the customer to do one or more of the following: provide a down payment at the start of the project; make equal monthly payments based on the expected duration of the project; provide frequent payments, such as weekly or monthly payments rather than quarterly

 

  1. The contractor’s outflow of cash can be controlled by
    1. paying a bill as soon as it is
    2. delaying payment until cash is received to pay the
    3. delaying payment until it is
    4. never paying

 

ANSWER:       c

FEEDBACK:  a. The contractor’s outflow of cash can be controlled by delaying payment until it is due.

  1. The contractor’s outflow of cash can be controlled by delaying payment until it is
  2. The contractor’s outflow of cash can be controlled by delaying payment until it is
  3. The contractor’s outflow of cash can be controlled by delaying payment until it is
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