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
Which estimating method derives costs by scaling a known project's cost to a new project using a capacity or size ratio?
Answer: Factored estimating
Factored estimating scales a known project's cost to a new one using equipment or capacity ratios, common in process industries.
In AACE terminology, a Class 1 estimate is characterized by what level of project definition?
Answer: 65–100%
A Class 1 estimate requires 65–100% project definition, providing the highest accuracy and lowest expected error range.
What is the primary purpose of a cost baseline in project budgeting?
Answer: To measure and monitor cost performance over time
The cost baseline serves as the approved time-phased budget against which actual project costs are measured and performance is monitored.
Which budget element covers unforeseen work that is within the defined project scope but not yet identified as specific tasks?
Answer: Contingency reserve
Contingency reserve addresses known-unknown risks within project scope, while management reserve covers unknown-unknown events.
When preparing a conceptual estimate, a cost consultant would most likely rely on which data source?
Answer: Historical cost databases and capacity ratios
Conceptual estimates rely on historical databases and parametric ratios because detailed design information is not yet available.
What does the term 'allowance' represent in a cost estimate?
Answer: A provision for known but unquantified items within scope
An allowance is a provision included in the estimate for known scope items whose quantities or costs have not yet been fully defined.