Practice Test GeeksCCC Practice Test
← All CCC Flashcard Decks

CCC Cost Estimating & Budgeting Flashcards

6 cards from real CCC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CCC Cost Estimating & Budgeting flashcards as text

  1. A cost consultant is asked to normalize historical project costs to current dollars. Which index is most commonly used for construction cost normalization in the US?

    Answer: Engineering News-Record (ENR) Construction Cost Index

    The ENR Construction Cost Index tracks changes in the cost of materials and labor specific to the US construction industry, making it the standard tool for normalizing historical construction costs.

  2. What is the difference between a bid bond and a performance bond in the context of project cost estimates?

    Answer: A bid bond guarantees the bidder will enter the contract; a performance bond guarantees contract execution

    A bid bond ensures a contractor will honor their bid and sign the contract, while a performance bond guarantees the contractor will complete the work per contract terms.

  3. In earned value management, what does Cost Performance Index (CPI) less than 1.0 indicate?

    Answer: The project is over budget relative to work completed

    A CPI below 1.0 means the project is spending more money than the value of work that has been earned, indicating a cost overrun.

  4. Which budget component is typically NOT included in the project cost baseline but IS included in the total project budget?

    Answer: Management reserve

    Management reserve is held outside the cost baseline for unknown-unknown risks and is added to the baseline to form the total project budget.

  5. What estimating approach uses cost-per-square-foot or cost-per-unit metrics derived from similar past projects?

    Answer: Parametric estimating

    Parametric estimating applies statistical relationships between project parameters (like area or capacity) and historical cost data to generate estimates.

  6. Why is location factor adjustment important in cost estimating?

    Answer: It adjusts base costs to reflect labor, material, and regulatory cost differences between geographic locations

    Location factors normalize a base estimate developed in one geographic area to reflect the actual cost environment—labor rates, material availability, and local regulations—of the project location.