Which of the following statements regarding budget methods and evaluation is true?

Which one of the following statements regarding the difference between a flexible budget and a static budget is correct?
A. A flexible budget primarily is prepared for planning purposes, while a static budget is prepared for performance evaluation.

B. A flexible budget is established by operating management, while a static budget is determined by top management.

C. A flexible budget provides cost allowances for different levels of activity, whereas a static budget provides costs for one level of activity.

D. A flexible budget includes only variable costs, whereas a static budget includes only fixed costs.

SOPHIA Pathways

Project Management

QSO-340

Unit 2 – Milestone 2

1.Which of the following is the least accurate effort estimate? An effort estimate for a new

process

2.In the process of project planning, which of the following statements is true? The

desirable planning sequence depends on the project.

3.When developing the project budget, it is useful to refer to the project schedule. What

information does the project schedule provide? Effort estimates for completing

deliverables

4.What is the appropriate response to a risk that is coded yellow? Monitor closely to

reevaluate the probability of occurrence.

5.The color yellow indicate on a project dashboard indicates which of the following?

Activity is in progress

6.Select the item below that is NOT described in a project schedule. Quality requirements

for completed work

7.Jani is worried that the team members she assigned to advertise her company’s

convention lack the expertise to design creative and informative brochures. This would

best be categorized as which type of risk? Resource risk

8.Lauren adds a vegetable garden to her already extensive backyard gardens. She tends her

vegetable garden with her collection of tools, which includes a shovel, a hoe, and a spade.

She waters the garden with a sprinkler system connected to her well. Which item below is

paid for by the budget for her project? Tomato plants

9.Who of the following provides approval for a project? Individuals with sign-off authority

10. Which statement describes the effort Joel used when he painted a room in his house? Joel

painted the room in three hours.

11. Which of the following is not a method of creating a project budget? Top-down

budgeting

12. Which of the following individuals listed in the RACI has authority for project action

approval? Accountable

13. Which of the following provides a sequenced plan that estimates the time required to

complete project activities and tasks? Project schedule

14. Which budgeting method below identifies money that should be added to a project

budget to cover cost changes for a project? Reserves

15. Which of the following is NOT included on a RACI? Detailed project tasks

16. Which of the statements below is NOT true about people resources? People resources

should be employees of the organization.

17. In which of the following ways does assigning people to tasks relate to the schedule? The

schedule should be created after the tasks are assigned.

18. Which of the following elements is NOT included as part of the five-step process of

developing a work breakdown structure? Developing the budget

19. Which of the following is the first step in creating a WBS? Refer to the scope to identify

the deliverable.

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Which of the following statement is typically true regarding budgeting?

Which of the following statements regarding budgeting is false?

Which of the following statements is true with regard to the difference between a flexible budget and a fixed budget?

What is the evaluation of budgeting?