BUSI 313 - Exam 2 Study Guide
Questions and Correct Answers.
Apportionment - Answer Costs allocated to a specific segment of a project by using a % of
planned total cost.
Bottom-up Estimates - Answer Detailed estimates of work packages usually made by those
who are most familiar with the task (also called micro estimates).
Delphi Method - Answer A group method to predict future events - e.g., time, cost.
Direct Costs - Answer Costs that are clearly charged to a specific work package (usually labor,
materials, or equipment).
Function Points - Answer Points derived from past software projects to estimate project time
and cost, given specific features of the project.
Learning Curve - Answer A mathematical curve used to predict a pattern of time reduction as a
task is performed over and over.
Overhead Costs - Answer Typically organization costs that are not directly linked to a specific
project. These costs cover general expenses such as upper management, legal, market
promotion, and accounting. Overhead costs are usually charged per unit of time or as a
percentage of labor or material costs.
Phase Estimating - Answer This estimating method begins with a macro estimate for the
project and then refines estimates for phases of the project as it is implemented.
Range Estimating - Answer An estimating technique in which multiple estimating points are
given based on some logic (i.e. high vs. low or best case, worst case, and most likely case)
Ratio Methods - Answer Uses the ratio of past actual costs for similar work to estimate the
cost for a potential project. This macro method of forecasting cost does not provide a sound
basis for project cost control since it does not recognize differences among projects.
, Template Method - Answer Use of a prepared form to develop project networks, costs, and
time estimates.
Time and Costs Databases - Answer Collection of actual verses estimated times and costs of
work packages over many projects that are used for estimating new project tasks and their
expected possible error.
Top-Down Estimates - Answer Rough estimates that use surrogates to estimate project time
and cost (also called macro estimates).
White Elephant - Answer A burdensome possession which is not easily disposed of and whose
cost (particularly upkeep) is out of proportion with its usefulness.
Activity - Answer Task(s) of the project that consumes time while people/equipment either
work or wait.
AOA - Answer Activity-on-arrow method for drawing project networks. The activity is shown as
an arrow.
AON - Answer Activity-on-node method for drawing project networks. The activity is on the
node (rectangle)
Burst Activity - Answer An activity that has more than one activity immediately following it.
Concurrent Engineering - Answer Cross-functional teamwork in new-product development
projects that provides product design, quality engineering, and manufacturing process
engineering all at the same time.
Critical Path - Answer The longest activity path(s) through the network. The critical path can
be distinguished by identifying the collection of activities that all have the same minimum slack.
Early Time - Answer The earliest an activity can start or finish based on network logic, the data
date, and any schedule constraints
Free Slack - Answer The maximum amount of time an activity can be delayed from its early
Questions and Correct Answers.
Apportionment - Answer Costs allocated to a specific segment of a project by using a % of
planned total cost.
Bottom-up Estimates - Answer Detailed estimates of work packages usually made by those
who are most familiar with the task (also called micro estimates).
Delphi Method - Answer A group method to predict future events - e.g., time, cost.
Direct Costs - Answer Costs that are clearly charged to a specific work package (usually labor,
materials, or equipment).
Function Points - Answer Points derived from past software projects to estimate project time
and cost, given specific features of the project.
Learning Curve - Answer A mathematical curve used to predict a pattern of time reduction as a
task is performed over and over.
Overhead Costs - Answer Typically organization costs that are not directly linked to a specific
project. These costs cover general expenses such as upper management, legal, market
promotion, and accounting. Overhead costs are usually charged per unit of time or as a
percentage of labor or material costs.
Phase Estimating - Answer This estimating method begins with a macro estimate for the
project and then refines estimates for phases of the project as it is implemented.
Range Estimating - Answer An estimating technique in which multiple estimating points are
given based on some logic (i.e. high vs. low or best case, worst case, and most likely case)
Ratio Methods - Answer Uses the ratio of past actual costs for similar work to estimate the
cost for a potential project. This macro method of forecasting cost does not provide a sound
basis for project cost control since it does not recognize differences among projects.
, Template Method - Answer Use of a prepared form to develop project networks, costs, and
time estimates.
Time and Costs Databases - Answer Collection of actual verses estimated times and costs of
work packages over many projects that are used for estimating new project tasks and their
expected possible error.
Top-Down Estimates - Answer Rough estimates that use surrogates to estimate project time
and cost (also called macro estimates).
White Elephant - Answer A burdensome possession which is not easily disposed of and whose
cost (particularly upkeep) is out of proportion with its usefulness.
Activity - Answer Task(s) of the project that consumes time while people/equipment either
work or wait.
AOA - Answer Activity-on-arrow method for drawing project networks. The activity is shown as
an arrow.
AON - Answer Activity-on-node method for drawing project networks. The activity is on the
node (rectangle)
Burst Activity - Answer An activity that has more than one activity immediately following it.
Concurrent Engineering - Answer Cross-functional teamwork in new-product development
projects that provides product design, quality engineering, and manufacturing process
engineering all at the same time.
Critical Path - Answer The longest activity path(s) through the network. The critical path can
be distinguished by identifying the collection of activities that all have the same minimum slack.
Early Time - Answer The earliest an activity can start or finish based on network logic, the data
date, and any schedule constraints
Free Slack - Answer The maximum amount of time an activity can be delayed from its early
