Project Budgeting Quiz

Which of the following strategies should you consider when creating your budget? Select all that apply.

• a. Disregard historical data

• b. Baseline your budget

• c. Time-phase your budget

• d. Document all costs

Which three of the following items are examples of direct costs for your project?

• a. Utilities

• b. Staff training

• c. Materials costs

• d. General office equipment

• e. Wages and salaries of employees and contractors

As a project manager, what three things should you do to control costs and reduce changes to the budget? Select all that apply.

• a. Request stakeholder approval on additional costs only after they are incurred

• b. Manage changes as they’re made.

• c. Establish a sign-off plan and inform stakeholders of any expense changes that occur.

• d. Ensure budget changes are within scope.

As a project manager, what does going under budget on a project indicate about your approach to budget management? Select all that apply.

• a. That you accurately estimated the total cost of ownership (TCO)

• b. That you effectively conserved funds and will likely receive larger budgets for future projects

• c. That your initial estimates were inaccurate

• d. That you could have spent more on the project to provide extra resources

Costs incurred from possible defects and broken material due to mismanagement during shipping are examples of...

• internal failures

• external failures

• direct costs

• indirect costs

As a project manager setting a budget, you factor in unexpected costs that may arise during the project. What budgeting strategy does this refer to? (Only 1 answer)

• a. Bottom-up approach

• b. Adding a buffer and reserves

• c. Setting a baseline

• d. Leveraging experts

Fill in the blank: Creating a _____ establishes a cost estimate for your project budget and ensures that you calculate the correct expenses for a set period of time. (Only 1 answer)

• a. contingency budget

• b. reserve analysis

• c. forecast

• d. cost of quality

What budgeting challenge arises when changes or growth cause additional work the project manager hadn’t planned for? (Only 1 answer)

• a. Inaccurate budget baseline

• b. Scope creep

• c. Inaccurately accounting for total costs

• d. Budget pre-allocation

As a project manager, you determine the cost for items such as software, tools, labor, and equipment. What budgeting term refers to these types of costs? (Only 1 answer)

• a. Cost of quality

• b. Reserve analysis

• c. Resource cost rates

• d. Contingency budget

Which of the items is not considered a direct cost?

• • Equipment rental costs

• • Software licenses 

• • Project-related travel and transportation costs

• • Staff training

• utilities