CBP CBP Estimating & Cost Control 2

Question 1

Earned Value Management (EVM) uses which three core metrics to assess project cost and schedule performance?

Accepted Answer

PV, EV, and AC

Answer

EVM is based on Planned Value (PV), Earned Value (EV), and Actual Cost (AC) to measure project performance against baseline.

Question 2

A Cost Performance Index (CPI) of 0.85 means a project is:

Accepted Answer

15% over budget

Answer

A CPI below 1.0 indicates the project is over budget; CPI = 0.85 means only $0.85 of value is earned for every $1.00 spent, signaling a 15% cost overrun.

Question 3

Which type of cost estimating is typically the LEAST accurate?

Accepted Answer

Order-of-magnitude estimate

Answer

An order-of-magnitude estimate (also called a ballpark estimate) is prepared with minimal project information and typically has an accuracy range of -25% to +75%.

Question 4

In construction cost accounting, 'direct costs' refer to:

Accepted Answer

Labor, materials, and equipment used on a specific project

Answer

Direct costs are expenses that can be directly attributed to a specific project, including labor, materials, and equipment used on that job.

Question 5

Which procurement method is MOST likely to result in the lowest initial bid price but highest risk of change orders?

Accepted Answer

Lump-sum hard bid

Answer

Lump-sum hard bids encourage contractors to bid competitively low but may lead to more change orders if the scope is not thoroughly defined.

(CBP) Certified Building Professional Practice Test

(CBP) Certified Building Professional Practice Test

CBP CBP Estimating & Cost Control 2