C. Lump sum contracts offer sellers the greatest profit potential.
D. Unit price contracts are illegal in many jurisdictions.
8. A Work Breakdown Structure (WBS) numbering system should allow project staff to:
A. Identify the level at which individual WBS elements are found.
B. Identify configuration management milestones.
C. Estimate the costs of WBS elements.
D. Provide project justification.
9. All of the following are true quality statements except:
A. Quality improvement depends upon better definition and increased awareness of the
requirements/specifications.
B. Project quality management must address both management of the project and the product of the project.
C. Recognition of key actions required of each team member is necessary to meet quality objectives.
D. Computer-aided design systems can improve quality, but only at the expense of an increase in the cost of design.
10. All of the following are examples of tools often used in cost estimating except:
A. Parametric modeling.
B. Analogous estimating.
C. Bottom-up estimating.
D. Activity duration estimates.
11. At XYZ Inc., the hourly wage for semi-skilled workers is $14.00. The annual audit shows that fringe benefits cost 30% of basic wages, and that overhead costs are 60% of wages plus fringe benefits. What is the loaded” hourly wage for a semi-skilled worker at XYZ Inc.?
A. $27.14.
B. $28.96.
C. $30.03.
D. $29.12.
12. Of the following estimates, which most accurately reflect the actual cost of the project?
A. Conceptual estimates.
B. Order of magnitude estimates.