Multiple Choice Questions

The lowest element in the hierarchical breakdown of the WBS is A. A deliverable B. A work package C. A cost account D. A lowest sub deliverable E. An object 11. The process of forecasting or approximating the time and cost of completing project deliverables is called A. Budgeting B. Predicting C. Estimating D. Planning E. Guesstimating 12. Janet is forecasting how much money her department needs to support a new project. She estimates that two people and $25,000 in expenses will cover her needs. Because management typically insists on reducing forecasts by 20 percent, she increases her estimates to allow for that reduction. Which of the following factors is illustrated in this situation? A. Padding estimates B. Planning horizon C. Project structure D. People E. Organization culture

13. Which of the following is provided by a project network but not by the work breakdown structure? A. Dependencies B. Sequencing C. Interrelationships D. Both A and B are correct E. A, B, and C are all correct 14. On a project network, the activity times are derived from the A. Organization breakdown structure B. Work packages C. Budget D. Project proposal E. Responsibility matrix 15. An activity that has more than one dependency arrow flowing into it is termed a(n) A. Parallel activity B. Critical path C. Burst activity D. Merge activity E. Independent activity 16. An uncertain event or condition that, if it occurs, has a positive or negative effect on a project objectives is termed. A. Random chance B. A disaster C. Risk D. Hazard E. Bad luck

17. The attempt to recognize and manage potential and unforeseen trouble spots that may occur when a project is implemented is known as A. Risk forecasting B. Risk management C. Contingency planning D. Scenario analysis E. Disaster protection 18. Which of the following would not be considered a threat? A. Inflation B. Meeting the project schedule C. International disruptions D. Economic conditions E. Competition 19. The two scales of a risk severity matrix measure A. Time, cost B. Cost, schedule C. Impact, cost D. Time, impact E. Likelihood, impact 20. Which of the following is identified to cover major unforeseen risks and, hence, are applied to the total project? A. Budget reserves B. Management reserves C. Time buffers D. Both B and C are correct E. A, B, and C are all correct