CHAPTER 13: PRICING AND ESTIMATING
(Difficulty: E = easy, M = medium, H = hard)
(E) 1. Which of the following is a cost-estimating relationship?
(E) 2. Which of the following standard project estimating techniques is usually accomplished
in weeks?
A. Parametric
(M) 3. Pricing out the construction cost of a home by a cost per square foot would be
representative of a ____________ estimate.
D. Grassroots
(M) 4. When a functional manager tells you that your project is 10% more difficult than the
standard project, the functional manager is providing you with a _____ estimate.
D. Grassroots
(E) 5. Which of the following projects would most likely have reasonably good estimating
techniques?
D. New product development
(M) 6. Material provided in a proposal to justify one’s estimates are called:
A. Supporting pricing
(E) 7. An employee earning $40/hour works in a department where the overhead is 125%. A
billable or charge back hour to this department would be:
D. $100
(E) 8. Which of the following is an estimating pitfall?
A. Misinterpretation of the statement of work
(H) 9. Which of the following components of life cycle costing incurs the largest cost?
A. R&D
(E) 10. Which of the following is generally not part of capital budgeting?
D. Discounted cash flow