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Questions and Answers
Which of the following best defines cost overrun in project management?
Which of the following best defines cost overrun in project management?
- The difference between actual costs and estimated costs (correct)
- The percentage of completion of a project
- The total budget allocated for a project
- The likelihood of a high-impact event occurring during a project
According to a 2011 Harvard Business Review study, what was the average cost overrun for IT projects?
According to a 2011 Harvard Business Review study, what was the average cost overrun for IT projects?
- 30 percent
- 10 percent
- 27 percent (correct)
- 15 percent
What is a 'black swan' event in the context of project management?
What is a 'black swan' event in the context of project management?
- An event that occurs frequently during a project
- A rare and unpredictable event with low impact
- A high-impact event that is rare and unpredictable (correct)
- An event that is easily predictable and manageable
What is the main finding of the 2011 Harvard Business Review study mentioned in the text?
What is the main finding of the 2011 Harvard Business Review study mentioned in the text?
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Why are 'black swan' events significant in project cost management?
Why are 'black swan' events significant in project cost management?
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Study Notes
Cost Overrun in Project Management
- Cost overrun refers to the excess of actual costs over the estimated budget of a project.
IT Project Cost Overrun
- The average cost overrun for IT projects is 27% according to a 2011 Harvard Business Review study.
Black Swan Events in Project Management
- A 'black swan' event is an unpredictable and rare occurrence that has a significant impact on a project.
- Black swan events are significant in project cost management because they can cause massive cost overruns and disrupt project plans.
Findings of the 2011 Harvard Business Review Study
- The main finding of the 2011 Harvard Business Review study is that 1 in 6 IT projects experiences a cost overrun of 200% or more on average.
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Description
Test your knowledge about project cost management with this quiz based on Chapter 7 of the book "Information Technology Project Management, Ninth Edition." Explore key concepts and techniques used in managing project costs.
