considers the total cost of ownership, or development plus support costs, for a project.

A. Learning Curve Theory

B. Life Cycle Costing

C. Parametric Modeling

D. Rate of performance

 

2)       Costs that can be directly related to producing the products and services of the project are called

A. Cost budgeting

B. Budget at completion

C. Direct costs

D. Earned value

 

3)        A time-phased budget that project managers use to measure and monitor cost performance.

A. Cost baseline

B. Cost budgeting

C. Cost estimating

D. Cost variance

 

4)        Costs that are not directly related to the products and services of the project, but are indirectly related to performing the project are called

A. Intangible costs

B. Sunk cost

C. Tangible cost

D. Indirect cost

 

5)        A document that describes how cost variances will be managed on the project is called

A. Analogous estimate

B. cost management plan

C. earned value management

D. estimate at completion

Answer

Step-by-step explanation

1).Life cycle costing considers the total cost of ownership, or development plus support costs, for a project.

B. Life Cycle Costing

Explanation

Life cycle costing is also known as whole life costing. It is the procedure of estimating how much money one is willing to spend on an asset over the course of its useful life. Precisely, it considers the overall cost of ownership in addition to development and support of costs of an asset from the time one purchases it to the time one gets rid of it.

2).Costs that can be directly related to producing the products and services of the project are called direct costs.

C. Direct costs

Explanation

Direct cost refers to the price that can be directly tied to the production of specific commodities or else services. The latter can be traced to the cost object, which can be a department, a commodity, etc. A direct cost tends to be one of the main types of expenses that corporations can incur. They are often variable, which means that they alter with the levels of production, for instance inventory.

3).A time-phased budget that project managers use to measure and monitor cost performance.

A. Cost baseline

Explanation

A cost baseline is a time phased plan that has been approved. Once a comprehensive budget is developed, as well as approved, the manager of a project ought to establish the cost baseline and set it as a comparison point for real performance progress. The budget is utilized for measuring how project alterations impact our schedule, as well as budget.

4). Costs that are not directly related to the products and services of the project, but are indirectly related to performing the project are called indirect cost.

D. Indirect cost  

Explanation

Indirect costs refer to those costs utilized by various activities, as well as which cannot be assigned to a specific cost object or else service of a project. Indirect costs are needed in operating a business as a whole. The costs do not fluctuate significantly within a certain volume of production, thus are considered to be fixed.

5). A document that describes how cost variances will be managed on the project is called

B. cost management plan

Explanation

A cost management plan is an outline of the project estimations, allotment, as well as control of costs for the required resources to complete every activity of a project. The configuration of the project's cost baseline tends to be one of the most vital parts of the planning phase of a project. To sum up, the cost management plan analyzes how the costs of a project will be planned, funded, as well as controlled.