16. A contractor is working on a fixed price contract that calls for a single, lump sum payment upon satisfactory completion of the contract. About halfway through the contract, the contractor’s project manager informs their contract administrator that financial problems are making it difficult for them to pay their employees and subcontractors. The contractor asks for a partial payment for work accomplished. Which of the following actions by the buyer is most likely to cause problems for the project? a. starting partial payments for work accomplished. b. adhering to the contract and making no early payments. c. paying for all work accomplished to date only. d. demanding penalty free options to make early payments.
17. To be successful, negotiating must be conducted in an atmosphere of: a. flexibility and understanding. b. sincerity and thoughtfulness. c. mutual respect and cooperation. d. sincerity and prudent caution.
18. Inputs to cost budgeting include all of the following except: a. cost baseline. b. cost estimates. c. work breakdown structure. d. project schedule.
19. A precise description of a deliverable includes a: a. specification. b. baseline. c. work package. d. WBS element.
20. Theory X management is based upon an assumption that: a. quality improvements lie in the hands of quality circles. b. profits are tied to meeting the project’s baseline milestones. c. absenteeism is tied to poor working conditions. d. workers are inherently unmotivated and need strong guidance.
21. All of the following are characteristics of parametric estimating except: a. historical data inputs. b. quantifiable relationships. c. scalable calculations. d. international standards.
22. Of the following estimates, which most accurately reflect the actual cost of the project? a. bottom-up estimates. b. order of magnitude estimates. c. preliminary estimates. d. conceptual estimates.
23. Including a contingency reserve in the project budget is intended to: a. reduce the probability of scope changes. b. increase the effectiveness of scope controls. c. reduce the probability of a cost overrun. d. increase the effectiveness of cost controls.