1.    Identify the statement that is not correct regarding a project budget.
a) The budget is included in a project plan
b) The budget is not an expression of organizational policy
c) The budget serves as a control mechanism for the project
d) The budget serves as a standard for comparison of planned and actual usage of resource
e) None of the above

2. The budgeting strategy based on collecting information and data from top and middle managers based on their prior experiences is called.
a. bottom-up.
b. integrative.
c. zero-based.
d. top-down.
e. PPBS.

3.  The project’s budget should:
a) Associate resource use with the achievement of organizational goals
b) Allow funds to be spent without linkage to achievement
c) Not reflect the timing of expenses associated with the use of resources
d) Never be changed during project execution
e) None of the above

4. In preparing the budget, a PM:
a. should depend on traditional budgeting approaches, using previous projects as a base.
b. should generalize expenditures as much as possible to allow for variances in the performance and resource utilization of specific tasks.
c. must be familiar with the organization's accounting system and all its unique aspects.
d. all of the above.
e. none of the above

5. Suppose that a person requires eight hours to complete a work element on the first attempt.  That person has a learning rate of 90 percent for this work element.  This person should require ________ hours to complete this work element on the fourth attempt.