Free Product Management: Cost Estimation Questions and Answers

Question 1

The excess percentage or quantity in terms of money by which actual expenses surpass projections

Accepted Answer

Overrun

Answer

Controlling Costs

Answer

Estimating Costs

Answer

Measurement and Test Equipment Costs

Question 2

Costs that are indirectly tied to the project's performance but not directly related to the goods or services it produces or provides

Accepted Answer

Indirect Costs

Answer

Direct Costs

Answer

Tangible Costs or Benefits

Answer

Controlling Costs

Question 3

Costs that may be directly tied to providing the project's goods and services

Accepted Answer

Direct Costs

Answer

Indirect Costs

Answer

Life Cycle Costing

Answer

Tangible Costs or Benefits

Question 4

A comprehensive analysis of a project's life cycle costs

Accepted Answer

Life Cycle Costing

Answer

Profits

Answer

Cash Flow Analysis

Answer

Tangible Costs or Benefits

Question 5

Costs or advantages that are challenging to quantify in money

Accepted Answer

Intangible Costs or Benefits

Answer

Cash Flow Analysis

Answer

Tangible Costs or Benefits

Answer

Life Cycle Costing

Question 6

Gives a rough cost estimate for a project.

Accepted Answer

Rough Order of Magnitude (ROM) Estimate

Answer

Definitive Estimate

Answer

Budgetary Estimate

Answer

None of the above

Question 7

Amounts included in a cost estimate to reduce expense risk by accounting for difficult-to-predict future events

Accepted Answer

Reserves

Answer

Budgetary Estimate

Answer

Sunk Cost

Answer

Rough Order of Magnitude (ROM) Estimate

Question 8

Expenses minus revenues

Accepted Answer

Profits

Answer

Cash Flow Analysis

Answer

Intangible Costs or Benefits

Answer

Sunk Cost

Question 9

Used to add funds to a budget for a company

Accepted Answer

Budgetary Estimate

Answer

Intangible Costs or Benefits

Answer

Definitive Estimate

Answer

Rough Order of Magnitude (ROM) Estimate

Question 10

Calculating a rough estimate of the expenses of the resources required to finish a project

Accepted Answer

Estimating Costs

Answer

Profit Margin

Answer

Profits

Answer

Cash Flow Analysis