What is the primary goal of cost control in project management?
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Wrong!
Cost control ensures that project expenses remain within the allocated budget, preventing overruns and financial risks.
Which budgeting method allocates funds based on prior period spending?
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Historical budgeting uses past expenditures to determine future budget allocations, ensuring consistency in financial planning.
Which tool is commonly used to track project expenses against the budget?
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Earned value management (EVM) helps assess cost performance by comparing planned and actual spending.
Which cost estimation technique relies on expert judgment and past project data?
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Analogous estimating uses historical project data and expert insights to estimate costs for a new project.
What is the primary purpose of a contingency reserve in budgeting?
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A contingency reserve accounts for unexpected expenses, helping to manage project risks and financial uncertainties.
Which metric measures the cost efficiency of a project?
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The cost performance index (CPI) is a key metric that evaluates how efficiently project funds are being used.