Question 1

osts are often divided into two categories: ____________.

Accepted Answer

The two categories of costs are generally considered to be direct costs (costs that can be directly traced to a specific product or service) and indirect costs (costs that cannot be directly traced to a specific product or service).

Question 2

___________ are all other expenditures, sometimes referred to as hidden costs.

Accepted Answer

Indirect costs are expenses that are not directly related to a specific product or service but are necessary for the business's operation. These costs can include office supplies, utilities, maintenance, and advertising. They are often referred to as hidden costs because they are not always visible in the budget or included in the initial cost estimates.

Question 3

Some of the tasks involved in a typical complex project are given below:
.Establish at least a 5 percent productivity improvement over previously established norms for the type of work in question.
.Labor budgets must be available to the contractor early in the project.
.Measures of actual performance against budgeted performance must be collected accurately. The data must be reliable.
.These data should then be used for decision making.

Accepted Answer

False

Question 4

In recent years, many manufacturing and service firms have been challenged to increase their focus on ___________ and _____________. At the same time, these organizations have had to increase productivity and quality, decrease cost of service, and deal with the demands of changing technology.

Accepted Answer

The correct choices are customer satisfaction and quality of service. These are key areas where firms have been focusing to remain competitive, alongside improving productivity, reducing costs, and adapting to new technologies.

Question 5

Over the past 60 years, since the end of World War II, the _________ has taken on an increasingly important role in the world economy. For example, in the United States, jobs in the __________ have increased from just fewer than 50 percent of the total jobs in the U.S. economy to more than 85 percent of the total jobs.

Accepted Answer

The service sector has taken on an increasingly important role in the world economy over the past 60 years, and in the United States, jobs in this sector have increased from just under 50 percent to over 85 percent. The other options, such as industrial, retail, manufacturing, and insurance sectors, have not seen such a significant increase in their share of jobs in the U.S. economy.

Question 6

The duties and responsibilities of the project or contract manager are diversified. The precise duties depend on the owner's organization. The skill and experience of the _____________ are the ultimate determinants of a successful project.

Accepted Answer

The answer of The duties and responsibilities of the project...

Question 7

__________________ have altered most customers' tolerance for less than full satisfaction with products and services they receive.

Accepted Answer

Expanding competition, emerging technologies, and improved communications have all contributed to customers expecting and demanding a higher level of satisfaction with products and services. This means that businesses must prioritize customer experience and continuously strive to meet and exceed their expectations.

Question 8

If the ______ is adequate, the right contractor is selected, and the ultimate price is reasonable, then a good management effort will secure the project. A poor management effort will undo all three pre-execution achievements.

Accepted Answer

The key term related to the sentence is "ultimate price" which refers to the cost of the project. Therefore, the best choice would be E, as SOW (Statement of Work) defines the project requirements, deliverables, timelines, and milestones, which are essential in determining the overall cost of the project. Thus, a well-written SOW can ensure that the project is successful, given the right contractor and adequate management effort.

Question 9

Many organizations in the ____________, especially those offering transportation, financial, and communication services, have encountered changes in their regulatory environment and in their technological structure. These changes have opened up new global markets but, at the same time, forced ____________ to determine ways in which to remain competitive or they would cease to exist.

Accepted Answer

The transportation, financial, and communication services mentioned in the passage are part of the service sector. The passage highlights the challenges faced by organizations in this sector due to changes in regulations and technology, and the need to remain competitive in order to survive.

Question 10

Some of the tasks involved in a typical complex project are given below:stablish a reasonable budget.Know where expenditures are being made.orecast final expenditures.Identify problem areas by comparing expenditures and budgets.

Accepted Answer

These are all typical tasks involved in managing a project's budget.

Question 11

Some of the tasks involved in a typical complex project are given below: 
.	Contractors/managers must be assigned direct cost center responsibility early.
.	Joint reviews of direct cost must take place on a scheduled basis.
.	Use tracking estimates to monitor budgeted versus actual costs.
.	Work hours must not be controlled.

Accepted Answer

The statement "Work hours must not be controlled" is incorrect. Work hours must be controlled and managed efficiently in any complex project.

Question 12

irect ____________ is increasing in the manufacturing sector as manufacturing flexibility allows more customized design.

Accepted Answer

Customer contact is increasing in the manufacturing sector as flexible manufacturing allows for more customized designs, which requires more interaction with customers to understand their specific needs and preferences.

Question 13

Some of the tasks involved in a typical complex project are given below: 
.Labor productivity, or effectiveness, should be tracked for each of the direct labor accounts. 
.Schedule control is essential to the success of any complex project.
.Major projects are a complex effort to mobilize and coordinate large numbers of personnel, materials, and equipment.

Accepted Answer

These tasks are indeed involved in a typical complex project.

Question 14

Some of the tasks involved in a typical complex project are given below, with one exception. Which one is not an appropriate task?

Accepted Answer

Determining the amount of union dues is not directly related to the tasks involved in a typical complex project.

Question 15

The ___________ is an agreement between the project owner (the Federal Highway Administration and a specific state department of transportation) and the contractor.

Accepted Answer

The scope of work is the correct term for an agreement that outlines the specific tasks, deliverables, and timelines a contractor is expected to complete for a project owner, such as the Federal Highway Administration and a specific state department of transportation.

Question 16

One of the tasks involved in a typical complex project is given below:
Good schedule control is to develop a plan, implement the plan, monitor execution of the plan, and make changes to the plan when necessary in order to meet target.

Accepted Answer

Good schedule control involves developing a plan, implementing the plan, monitoring the execution of the plan, and making changes to the plan when necessary. This helps to ensure that the project stays on track and meets its target.

Question 17

Some factors that may contribute to a successful project are listed below. Which of the following is/are the most important?

Accepted Answer

While all three factors are important for project success, adequacy of site management and a strong relationship between the owner and contractor are often cited as the most critical factors. Financial stability of the owner is also important, but may not always be within the control of the project team. Therefore, the best choice is E, as it includes the two most important factors.

Question 18

The need for ____________ in all types of organizations to recognize and be able to provide high-quality, efficient service to customers has become essential. The importance of a responsive workforce, able to execute procurement activities in keeping with organizational objectives, cannot be understated.

Accepted Answer

The sentence emphasizes the importance of a responsive workforce in all types of organizations, which generally refers to employees as a whole, rather than specific roles like managers, sales agents, or purchasing agents.

Question 19

_____________ include materials, labor, and subcontract expenditures associated with the actual implementation.

Accepted Answer

Direct costs are costs that are directly associated with the implementation of a project, such as materials, labor, and subcontract expenses. Expected costs, budgeted costs, necessary costs, and fixed costs refer to different aspects of project budgeting, but do not specifically refer to the costs associated with implementation.

Question 20

In order to be successful, the project must come in meeting the SPA, on time and within budget.

Accepted Answer

The answer of In order to be successful, the project...

Quiz 18: Procuring Professional Services