1.

The industrial engineering method estimates cost functions:

a. based on analysis and opinions gathered from various departments
b. quickly while incurring little cost
c. using qualitative rather than quantitative analysis
d. by analyzing the relationship between inputs and outputs in physical terms
Answer: d Difficulty: 2 Objective: 3
Terms to Learn: cost estimation, industrial engineering method

2. The conference method estimates cost functions:

a. using quantitative methods that can be very time consuming and costly
b. based on analysis and opinions gathered from various departments
c. using time-and-motion studies
d. by mathematically analyzing the relationship between inputs and outputs in
physical terms
Answer: b Difficulty: 2 Objective: 3
Terms to Learn: conference method, cost estimation

3. The account analysis method estimates cost functions:

a. by classifying cost accounts as variable, fixed, or mixed based on qualitative
analysis
b. using time-and-motion studies
c. at a high cost, which renders it seldom used
d. in a manner that cannot be usefully combined with any other cost estimation
methods

Answer: a Difficulty: 2 Objective: 3

Terms to Learn: account analysis method

4. Quantitative analysis methods estimate cost functions:

a. which depend on the experience and judgment of the analyst for accuracy
b. based on analysis and opinions gathered from various departments
c. using significant amounts of historical data
d. using the pooling of knowledge from each value chain function

Answer: c Difficulty: 2 Objective: 3

Terms to Learn: cost estimation, cost function