project planning putting it all together weekly challenge 3 answers
1. Which three costs are examples of resource cost rates?
- The cost of a task buffer
- The cost of labor for a project team
- The cost of software to help manage a project
- The cost of materials when building a house
2. Which scenario is an example of planned cost versus actual cost?
- When planning your project budget, you notice that you need to advertise several job positions. The cost to post the job descriptions to several online job boards is $300.
- When planning your project budget, you document the planned cost of labor. To do this, you use the estimated number of hours your team needs to complete the project. As your project progresses, you document the total hours your team works to determine the total cost of labor for your project. This number may be different from your original cost of labor.
- When planning your project budget, you gather historical data on costs of materials, resources, and labor to determine how much each will cost. Once you begin procuring these items, you don’t update the actual cost.
- When planning your project budget, you need to factor in unexpected costs that may occur. You decide to reserve 5% of your overall budget as a buffer.
3. As a project manager creating a budget, you proactively identify factors that may impact expenses. You then take action to minimize the budgetary impact of these factors. What is this task called?
- Bottom-up approach
- Estimating cost
- Baselining the budget
- Cost control
4. Which of the following are steps in the procurement process? Select all that apply.
- Initiating
- Contract writing
- Controlling
- Analyzing
5. After receiving multiple bids for your project, you select a vendor you’d like to work with. You’re ready to start the contracting process. Which procurement document do you fill out and send the vendor?
- Statement of work (SoW)
- Request for proposal (RFP)
- Non-disclosure agreement (NDA)
- Scope of work (SoW)
6. Which of the following justifies sole-supplier sourcing?
- The company is cautious about exposing trade secrets.
- The supplier provided material for the past three projects.
- The project sponsor asks to only use one particular supplier.
- The supplier is easy to work with and offers a discount.
7. Fill in the blank: A project manager needs to alter their budget after making changes to the project schedule and costs. This is necessary in order to _____.
- re-baseline the budget to track project progress of costs.
- baseline the budget to track project progress of costs
- baseline the budget to track project progress of reserves
- re-baseline the budget to track project progress of tasks
8. At what phase in the procurement process would a project manager check a vendor’s reputation for delivering quality work, and make a site visit?
- Introducing
- Selecting
- Controlling
- Completing
9. When budgeting a project, you should consider additional expenses such as warranties, supplies, add-ons, and upgrades. Which budgeting term refers to this concept?
- Bottom-up approach
- Top-down approach
- Baseline your project
- Total cost of ownership
10. Fill in the blank: Typically, a project manager organizes a budget by _____. Then, the project manager lists tasks alongside each task’s associated costs.
- tools
- dependencies
- teammates
- milestones
Shuffle Q/A 1
11. Imagine you are in charge of the budget for a project. You understand the stakeholder needs and have budgeted for surprise expenses. Which of the following is a budgeting task you need to do over the course of the project?
- Cancel planned expenses
- Review and reforecast
- Rebudget and restart
- Procure additional funding
12. Which of the following is an example of using historical data to develop your project budget?
- Thinking about all the parts of your project from the beginning to the end and adding the costs together
- Getting quotes from potential vendors
- Reviewing past projects that are similar to yours to get an idea of what your budget could entail
- Reaching out to project managers who worked on past projects at the company
Which section of the statement of work (SoW) includes details about what the service entails and may include major project activities?
Target audience
Purpose
Scope
Schedule overview
Scope
As a project manager, you research and source for a specific service. You then have to manage that relationship. This is known as what type of procurement?
Budget management
Performance management
Cost management
Vendor management
Vendor management