Companies like Boeing, Kodak, and IBM are using which of the following for improving the estimating process? 

A. Adjusting estimates based on individual forecasting abilities

B. Benchmarking using the experience of other companies

C. Using time and motion studies

D. Creating historical databases of previous projects

E. All of these are correct

Answer: Creating historical databases of previous projects

Which of the following is not one of the recommended guidelines for developing useful work package estimates? 

A. Estimates should be made by those responsible for the work

B. Use several people to estimate the same work

C. Estimates should be based on normal conditions

D. Estimates should include a normal level of contingency

E. Estimates should be independent of other projects

Answer: D. Estimates should include a normal level of contingency

Which of the following would be considered a direct project cost? 

A. Labor

B. Materials

C. Equipment

D. Both A and B are direct costs

E. A, B, and C are all considered direct costs

Answer: A, B, and C are all considered direct costs

Project costs are typically viewed from all of the following except: 

A. Scheduled

B. Sunk

C. Actual

D. Committed

E. All of these are correct

Answer: sunk

Typical kinds of costs found in a project include 

A. Direct costs

B. Project overhead costs

C. General and administrative costs

D. Only A and B are included

E. A, B, and C are all included

Answer: A, B, and C are all included

The cost to prepare bottom-up estimates will typically run how much more than the costs to prepare the top-down estimates? 

A. About the same

B. About twice as much

C. About three times as much

D. About four times as much

E. About five times as much

Answer: About three times as much

The accuracy of bottom-up estimates will typically be in the range of 

A. Minus 50% to plus 50%

B. Minus 0% to plus 75%

C. Minus 20% to plus 60%

D. Minus 35% to plus 35%

E. Minus 10% to plus 30%

Answer: Minus 10% to plus 30%