CCC CCC Cost Estimating & Budgeting 1

Question 1

Which estimating method derives costs by scaling a known project's cost to a new project using a capacity or size ratio?

Accepted Answer

Factored estimating

Answer

Parametric estimating

Answer

Analogous estimating

Answer

Definitive estimating

Question 2

In AACE terminology, a Class 1 estimate is characterized by what level of project definition?

Accepted Answer

65–100%

Answer

1–15%

Answer

15–40%

Answer

40–65%

Question 3

What is the primary purpose of a cost baseline in project budgeting?

Accepted Answer

To measure and monitor cost performance over time

Answer

To set profit margins

Answer

To determine contractor bid prices

Answer

To calculate contingency reserves

Question 4

Which budget element covers unforeseen work that is within the defined project scope but not yet identified as specific tasks?

Accepted Answer

Contingency reserve

Answer

Management reserve

Answer

Profit margin

Answer

Escalation allowance

Question 5

When preparing a conceptual estimate, a cost consultant would most likely rely on which data source?

Accepted Answer

Historical cost databases and capacity ratios

Answer

Detailed vendor quotations

Answer

Final engineering drawings

Answer

Subcontractor bids

Question 6

What does the term 'allowance' represent in a cost estimate?

Accepted Answer

A provision for known but unquantified items within scope

Answer

Profit added by the contractor

Answer

The contingency for schedule delays

Answer

Tax and insurance costs