Term
| Variable costs are those that vary with an operation that varies in the quantity of _____________ |
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Definition
| output or other measures of activity level |
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Term
| Parametric cost estimating is the use of historical cost data and statistical techniques to predict ____ costs. |
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Definition
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Term
| Perhaps the most serious source of error in developing cash flows is ______ |
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Definition
| overlooking important categories of costs and revenues |
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Term
| A cash flow diagram summarizes the timing and ______ of cash flows as they occur over time. |
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Definition
a. interest rate
b. magnitude
c. duration
d. all of the above (Correct) |
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Term
| You would use (F/P, i, n) to determine the ______. |
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Definition
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Term
| For present worth calculations, when N approaches infinity, you can use _____ |
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Definition
a. (P/A, i, n)
b. P/i
c. A/i (Correct)
d. F/i
e. All of the above |
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Term
| Projects are ______ if, in the process of choosing one, all other alternatives are excluded. |
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Definition
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Term
| MARR stands for _________ |
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Definition
| Minimum Acceptable Return Rate |
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Term
| The internal rate of return (IRR) on an investment is the interest rate i* such that, when all cash flows associated with the project are discounted at i*, the ____ of the cash inflows equals the _____ of the cash outflows. |
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Definition
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Term
| For independent projects we will invest in any project that has an IRR equal to or exceeding the _____. |
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Definition
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Term
A typical fixed cost would be
1. insurance
2. general management salaries
3. license fees
4. interest costs on borrowed capital
5. all of the above |
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Definition
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Term
There may be uncertainty in estimating project parameter values as a result of:
1. technological change
2. change in sales volume or market share
3. inflation
4. general economic activity levels within an industry
5. all of the above |
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Definition
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Term
A Cost Estimating Relationship (CER) is a mathematical model that describes the cost of an engineering project as a function of one or more variables.
1. cost
2. design
3. depreciation
4. fixed
5. all of the above |
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Definition
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Term
Market equivalence is a consequence of the ability to ______ one cash flow for another at zero cost.
1. understand
2. predict impact of
3. exchange
4. analyze
5. all of the above |
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Definition
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Term
The simplest relation between projects occurs when they are
1. equivalent annuities
2. mathematically equivalent
3. mutually exclusive
4. independent
5. all of the above |
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Definition
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Term
I.The first step in the process of comparing several mutually exclusive alternatives using IRR is to ______.
1. calculate the present worth of all the alternatives
2. calculate the annual worth of all the alternatives
3. order the alternatives from largest to smallest first cost
4. order the alternatives from smallest to largest first cost
5. order the alternatives from largest to smallest present worth |
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Definition
| 4: order the alternatives from smallest to largest first cost |
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Term
| The external rate of return (ERR) is the rate of return on a project where any cash flows _________. |
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Definition
| not invested in the project are assumed to earn the MARR |
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Term
Companies are taxed on _____
1. revenues
2. net profits
3. expenses
4. assets
5. equity |
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Definition
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Term
Once an asset has been installed and has been operating for some time, the costs of installation and other expenses incurred up to that time are _________.
1. are depreciated over the estimated life of the asset after taking into account the half-year rule
2. called sunk costs and are no longer relevant to any decision to replace the current asset
3. are referred to as real dollars and the cash flow needs to be adjusted to make them actual
4. are required to be reported to the Canada Revenue agency so an accurate salvage value can be provided
5. all of the above |
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Definition
| 2. called sunk costs and are no longer relevant to any decision to replace the current asset |
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Term
Which of the following is NOT an example of actual dollars?
1. A photocopier will cost $2,200 one year from now
2. The faster turnaround time at the congested loading dock will save $50,000 per year in today's dollars
3. Elliot Weisgerber's income rose from $40,000 per year in 2010 to $42,000 in 2012
4. They expect the irrigation system will bring them $22,000 per year in additional revenues
5. all of the above |
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Definition
| 2. The faster turnaround time at the congested loading dock will save $50,000 per year in today's dollars |
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Term
| In dealing with risk and uncertainty, “Rolling Back”, has nothing to Walmart and prices, it is ... |
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Definition
| 1. a procedure involving backward induction and assessing the best expected values |
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Term
Which of the following is NOT one of the risk management steps?
1.analysis of probability and consequences
2.mitigation strategies
3.planning and scheduling
4.risk identification
5.control and documentation |
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Definition
| 3. Planning and scheduling (scheduling is not part of risk management) |
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Term
The severity of negative consequences in a project's life span is...
A. greatest early in the project's life
OR
B. minimal early in the project's life |
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Definition
| B. minimal early in the project's life |
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Term
The period of highest risk impact in a project's life span occurs
1. between the implementation (execute) and the termination (finish) phases
2. between the conceive and develop phases
3. between the develop and implementation (execute) phases
4. at the end of the termination (finish) phase
5. at the beginning of the conceive phase |
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Definition
| 1. between the implementation (execute) and the termination (finish) phases |
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Term
The duration and structure of change initiatives vary significantly, but all have a degree of complexity and
1. involve cost accounting and management accounting
2. are outside the normal daily workload
3. monitor resources, costs, quality and budget
4. vary the structure and duration
5. require equity sources of funding |
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Definition
| 1. involve cost accounting and management accounting |
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Term
There are four classic outcomes from change, which reflect the risks and the ways to avoid them. They are; The disaster, the lost investment, the and the ideal.
1. unlikely outcome
2. complete success
3. partial success
4. failed outcome
5. redesign success |
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Definition
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Term
One significant cost that is often forgotten is the effect on the time of everyone affected by change. Many people in the organisation will need to give up time to
1. explain how things work to those involved in designing changes
2. be consulted on the effectiveness and realism of planned change
3. provide ideas for improvements
4. be trained and have changes explained to them
5 all of the above |
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Definition
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