1. A key objective of change control in configuration management is to keep track of actions taken in response to change requests.   a. true    b. false Q2. A key weakness of the Benefit-Cost ratio project selection mechanism is that:   a. It only focuses on things that can be measured    b. It takes time frame into consideration    c. It is too much based on subjective judgment    d. It does not entail prioritizing Q3. Good functional requirements   a. Describe how the deliverable should be developed    b. Provide detailed technical insights into what the deliverable will do    c. Describe what the deliverable looks like and what it should do    d. Are created after development of the technical specifications Q4. A project can be terminated prematurely because the original objectives may no longer be valid.   a. true    b. false Q5. A tool that graphically shows cost variance is:   a. A chart of accounts    b. A code of accounts    c. A histogram (also called a resource loading chart)    d. A cumulative cost curve (also called S-curve) Q6. In resource planning, one of the issues that needs to be considered is:   a. Staff empowerment    b. Technical requirements of the project    c. Theory X management principles    d. Theory Y management principles Q7. When crashing a project, we typically choose critical path tasks whose costs of crashing are highest.   a. true    b. false Q8. The poor man's hierarchy is a method for:   a. Project estimation    b. Project scheduling    c. WBS construction    d. Project selection Q9. Ensuring a one-to-one correspondence between specification items and general design items is a feature of:   a. Scope statement definition    b. WBS construction    c. Rapid prototyping    d. Configuration management Q10. The astute project manager typically uses only one management style in order not to confuse his/her teammates.   a. true    b. false Q11. Structured Walk-Through is a methodology used in:   a. PERT    b. GERT    c. VERT    d. Project Evaluation Q12. If EV = $300, AC = $400, and the project budget is $1,000, what is the estimated final cost of the project (this is known as EAC, estimate at complete)?   a. $750    b. $1,000    c. $1,250    d. $1,333 Q13. If review of a project's status indicates that EV = $400, AC = $400, and PV = $500, the project is:   a. On budget, behind schedule    b. On budget, ahead of schedule    c. Over budget, behind schedule    d. Over budget, ahead of schedule Q14. In project management, the level of uncertainty plays a major role in determining the adequacy of a project plan.   a. true    b. false Q15. The purpose of mid-project evaluation is:   a. Continual monitoring of budget and estimates    b. To focus on achievement of individual element of the project plan    c. To determine whether the original objectives are still relevant    d. To re-baseline the project budget Q16. Confidence in the accuracy of a cost estimate increases when top-down and bottom-up estimates converge.   a. ...

1. 1. A key objective of change control in configuration
management is to keep track of actions taken in response to
change requests. a. true
b. false
Q2. A key weakness of the Benefit-Cost ratio project selection
mechanism is that: a. It only focuses on things that can be
measured
b. It takes time frame into consideration
c. It is too much based on subjective judgment
d. It does not entail prioritizing
Q3. Good functional requirements a. Describe how the
deliverable should be developed
b. Provide detailed technical insights into what the
deliverable will do
c. Describe what the deliverable looks like and what it should
do
d. Are created after development of the technical
specifications
Q4. A project can be terminated prematurely because the
original objectives may no longer be valid. a. true
b. false
Q5. A tool that graphically shows cost variance is: a. A chart
of accounts
b. A code of accounts
c. A histogram (also called a resource loading chart)
d. A cumulative cost curve (also called S-curve)
Q6. In resource planning, one of the issues that needs to be
considered is: a. Staff empowerment
b. Technical requirements of the project
c. Theory X management principles
d. Theory Y management principles
Q7. When crashing a project, we typically choose critical path
tasks whose costs of crashing are highest. a. true
b. false

2. Q8. The poor man's hierarchy is a method for: a. Project
estimation
b. Project scheduling
c. WBS construction
d. Project selection
Q9. Ensuring a one-to-one correspondence between
specification items and general design items is a feature of: a.
Scope statement definition
b. WBS construction
c. Rapid prototyping
d. Configuration management
Q10. The astute project manager typically uses only one
management style in order not to confuse his/her teammates. a.
true
b. false
Q11. Structured Walk-Through is a methodology used in: a.
PERT
b. GERT
c. VERT
d. Project Evaluation
Q12. If EV = $300, AC = $400, and the project budget is
$1,000, what is the estimated final cost of the project (this is
known as EAC, estimate at complete)? a. $750
b. $1,000
c. $1,250
d. $1,333
Q13. If review of a project's status indicates that EV = $400,
AC = $400, and PV = $500, the project is: a. On budget,
behind schedule
b. On budget, ahead of schedule
c. Over budget, behind schedule
d. Over budget, ahead of schedule
Q14. In project management, the level of uncertainty plays a
major role in determining the adequacy of a project plan. a.
true
b. false

3. Q15. The purpose of mid-project evaluation is: a. Continual
monitoring of budget and estimates
b. To focus on achievement of individual element of the
project plan
c. To determine whether the original objectives are still
relevant
d. To re-baseline the project budget
Q16. Confidence in the accuracy of a cost estimate increases
when top-down and bottom-up estimates converge. a. true
b. false
Q17. Milestones, like tasks, consume resources. a. true
b. false
Q18. A project team structure that closely reflects the physical
structure of the deliverable is known as: a. Egoless
b. Specialty
c. Surgical
d. Isomorphic
Q19. Which of the following is an example of a project? a.
Maintaining e-mail addresses
b. Capacity planning
c. Submitting travel and expense reports
d. Sending monthly reports to top management
Q20. The critical path: a. Provides the duration of a project
b. Has the shortest duration on a project
c. Is the most expensive path to implement
d. Contains the project's most significant tasks
Q21. In risk management, insurance is an example of: a. Risk
avoidance
b. Risk deflection
c. Risk acceptance
d. Contingency planning
Q22. The bottom-most level of the WBS -- the level at which
project budget and schedule data are captured -- is called: a.
Work package
b. Code of accounts
c. Budget baseline

4. d. Change control level
Q23. What is the function of a change control board (CCB) in
configuration management? a. To assess the management
impacts of change requests
b. To initiate changes needed on the project
c. To focus on the technical implication of change requests
d. To approve change requests coming from senior
management
Q24. A major strength of task Gantt charts is that they can: a.
Offer a sophisticated model of a project
b. Show how many resources will be used on the project
c. Show the interdependencies of tasks
d. Show actual versus planned schedule status
Q25. Functional requirements provide us with detailed technical
specifications. a. true
b. false
Q26. A laissez-faire management style may lead to a ship
without rudder syndrome. a. true
b. false
Q27. The resource planning tool that enables us to identify who
we need to carry out what tasks is called: a. A resource Gantt
chart
b. A resource matrix (also called the responsibility chart)
c. A resource ogive
d. A resource loading chart (also called a resource histogram)
Q28. When we have objective data on the probability of an
event, we are involved with decision making under
certainty. a. true
b. false
Q29. Which of the following is a scope planning tool? a.
Benefit/cost analysis
b. WBS
c. Earned Value analysis
d. Fast tracking
Q30. The Theory X approach to managing workers is a classic
example of a top-down view of how people should be

5. managed. a. true
b. false
Q31. Scope creep means: a. Needs emergence and
identification
b. Uncontrolled changes to a project's requirements during
project execution
c. Migration of project needs to requirements
d. Imprecise scope statement
Q32. An objective of prototyping is to minimize life-cycle
cost. a. true
b. false
Q33. Concurrent engineering involves overlapping tasks and
phases to accelerate a project's schedule. a. true
b. false
Q34. Bottom-up estimates: a. Are based on historical trends
b. Can be derived from the WBS
c. Must employ Monte Carlo simulation
d. a and c
Q35. Using working time or elapsed time to calculate the time it
will take to complete a task produces the same results. a. true
b. false
Q36. There is a definite link between the level of risk an
enterprise encounters and project time frame. a. true
b. false
Q37. A modern view in Human Resource Management is that
positive motivation results from an opportunity to achieve and
experience self-actualization. a. true
b. false
Q38. The type of management whose focus is on activities
whose variances lie outside the acceptable range is: a.
Management by Objectives
b. Management by Exception
c. Management by Walking Around
d. Management by Control Limits
Q39. Which of the following shows resource allocation over
time? a. Resource Gantt chart

6. b. Resource matrix
c. S-Curve
d. Resource leveling
Q40. Which of the following is a characteristic of an effective
reporting system? a. SMART
b. KISS
c. MBO
d. LOWBALLING
Q41. If the latest time you can start a task is five hours into the
project, and the earliest time is three and a half hours into the
project, how much slack (also called float) does the task
have? a. 0.5 hours
b. 1.5 hours
c. 2.5 hours
d. 8.5 hours
Q42. Internal Rate of Return (IRR) is the discount rate that sets
the present value of cash outflow equal to the present value of
cash inflow. a. true
b. false
Q43. Configuration management is a: a. Methodology for
working closely with customers by developing and updating
requirements for faster response to changing customer needs
b. Methodology for ensuring that requirements evolve with
evolving customer requirements
c. Methodology for specifying requirements at the outset and
for controlling very tightly any changes to them
d. Methodology for specifying requirements at the outset and
for facilitating any changes to them with minimum customer
input
Q44. According to PMI, a WBS should focus on a. Tasks
b. Deliverables
c. Interrelationships among activities
d. Cost of the project
Q45. Under what conditions may a project manager accept a
change request? a. If the request has no effect on project
objectives, deadlines, or resources

7. b. If the request has no effect on project objectives, although
it has effects on deadlines and resources
c. If the request is coming from a valued customer
d. If the request is from the Chief Executive Officer
Q46. Which of the following methods involves performing tasks
in parallel? a. Crashing
b. Fast tracking
c. Leveling
d. Hammocking
Q47. Top-down estimates (also called parametric estimates): a.
Are based on historical trends
b. Can be derived from the WBS
c. Can be determined by analyzing work packages
d. Provide accurate assessments of project costs
Q48. Under rapid prototyping (also called application
prototyping), the customer actually sees and works with the
deliverable as it evolves. a. true
b. false
Q49. Definitive estimates are generally derived from: a.
Bottom-up estimates
b. Top-down estimates
c. Expert judgment cost estimates
d. Order of magnitude estimates
Q50. An effective project manager must: a. Tell his team
members what to do
b. Be the most capable person on the team technically
c. Be focused on achieving results
d. Not trust his team members to achieve results without his
personal attention to detail
A
ACC 206 Week Three Assignment
Please complete the following five exercises below in either
Excel or a word document (but must be single document). You

8. must show your work where appropriate (leaving the
calculations within Excel cells is acceptable). Save the
document, and submit it in the appropriate week using the
Assignment Submission button.
1. Overhead application: Working backward
The Towson Manufacturing Corporation applies overhead on the
basis of machine hours. The following divisional information is
presented for your review:
Division A
Division B
Actual machine hours
22,500
?
Estimated machine hours
20,000
?
Overhead application rate
$4.50
$5.00
Actual overhead
$110,000
?
Estimated overhead
?
$90,000
Applied overhead
?
$86,000
Over- (under-) applied overhead
?
$6,500
Find the unknowns for each of the divisions.

9. 2. Computations using a job order system
General Corporation employs a job order cost system. On May 1
the following balances were extracted from the general ledger;
Work in process
$ 35,200
Finished goods
86,900
Cost of goods sold
128,700
Work in Process consisted of two jobs, no. 101 ($20,400) and
no. 103 ($14,800). During May, direct materials requisitioned
from the storeroom amounted to $96,500, and direct labor
incurred totaled $114,500. These figures are subdivided as
follows:
Direct Materials
Direct Labor
Job No.
Amount
Job No.
Amount
101
$5,000
101

10. $7,800
115
19,500
103
20,800
116
36,200
115
42,000
Other
35,800
116
18,000
$96,500
Other
25,900
$114,500

12. Job no. 115 was the only job in process at the end of the month.
Job no. 101 and three "other" jobs were sold during May at a
profit of 20% of cost. The "other" jobs contained material and
labor charges of $21,000 and $17,400, respectively.
General applies overhead daily at the rate of 150% of direct
labor cost as labor summaries are posted to job orders. The
firm's fiscal year ends on May 31.
Instructions:
a. Compute the total overhead applied to production during
May.
b. Compute the cost of the ending work in process inventory.
c. Compute the cost of jobs completed during May.
d. Compute the cost of goods sold for the year ended May 31.
3. High-low method
The following cost data pertain to 20X6 operations of Heritage
Products:
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Shipping costs
$58,200
$58,620
$60,125
$59,400

13. Orders shipped
120
140
175
150
The company uses the high-low method to analyze costs.
a. Determine the variable cost per order shipped.
b. Determine the fixed shipping costs per quarter.
c. If present cost behavior patterns continue, determine total
shipping costs for 20X7 if activity amounts to 570 orders.
4. Break-even and other CVP relationships
Cedars Hospital has average revenue of $180 per patient day.
Variable costs are $45 per patient day; fixed costs total
$4,320,000 per year.
a. How many patient days does the hospital need to break even?
b. What level of revenue is needed to earn a target income of
$540,000?
c. If variable costs drop to $36 per patient day, what increase in
fixed costs can be tolerated without changing the break-even
point as determined in part (a)?
5. Direct and absorption costing
The information that follows pertains to Consumer Products for
the year ended December 31, 20X6.
Inventory, 1/1/X6
24,000 units
Units manufactured

14. 80,000
Units sold
82,000
Inventory, 12/31/X6
? units
Manufacturing costs:
Direct materials
$3 per unit
Direct labor
$5 per unit
Variable factory overhead
$9 per unit
Fixed factory overhead
$280,000
Selling & administrative expenses:
Variable
$2 per unit
Fixed
$136,000
The unit selling price is $26. Assume that costs have been
stable in recent years.
Instructions:
a. Compute the number of units in the ending inventory.
b. Calculate the cost of a unit assuming use of:
1. Direct costing.
2. Absorption costing.
c. Prepare an income statement for the year ended December 31,
20X6, by using direct costing.
d. Prepare an income statement for the year ended December 31,
20X6, by using absorption costing.