Chapter Quiz: Financial Resource Allocation

What is the primary purpose of financial resource allocation in projects?

Which of the following is NOT a method for estimating project costs?

What is the first step in creating a project budget?

Why is cost forecasting important in financial resource allocation?

What tool is commonly used to track project budget performance?

Which of the following is a key benefit of variance analysis in project budgeting?

What is a contingency fund in a project budget?

What does earned value management (EVM) measure?

Which of the following is a common method for forecasting project costs?

What is the role of a financial manager in resource allocation?

Financial resource allocation ensures that a project remains within its budget.

Cost forecasting is not necessary if the project has a fixed budget.

Variance analysis helps to identify and correct budget discrepancies early

A contingency fund is only used for project initiation

Earned value management (EVM) helps assess the value of work completed relative to the budget.