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1. James is a project manager for Red, Inc. He needs to hire a computer programmer to help complete the project. He estimates that James will work 20 hours at an hourly rate of $20 per hour. This cost is an example of:
a. administrative cost.
b. managerial cost.
c. cost estimate.
d. all of the above.
2. A designated amount of time and money to account for parts of the project that cannot be predicted such as major disruptions in the project caused by a hurricane. This is known as a(n):
a. indirect cost.
b. management reserve.
c. biased budget.
d. none of the above.
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