Cost Estimation & 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 Cost Estimation & Budgeting flashcards as text
Which cost estimation method relies on historical data and expert judgment?
Answer: Analogous estimation
Analogous estimation uses historical project data and expert experience to estimate costs, making it a quick but less precise method.
What is the main purpose of a contingency reserve in budgeting?
Answer: To cover unforeseen risks and uncertainties
A contingency reserve is included in the budget to account for unforeseen risks and uncertainties, ensuring financial preparedness for unexpected costs.
Which cost estimation technique uses mathematical models and statistical data?
Answer: Parametric estimation
Parametric estimation applies statistical relationships between cost variables to predict costs based on unit measurements, making it efficient and data-driven.
What is the purpose of Earned Value Management (EVM) in cost control?
Answer: To track project cost efficiency and schedule performance
Earned Value Management (EVM) helps assess project performance by comparing planned, actual, and earned costs to track cost efficiency and schedule performance.
Which factor is critical in determining an accurate project budget?
Answer: Scope definition
Scope definition is crucial to establishing an accurate budget, as unclear or changing project scopes can lead to cost overruns and budget inaccuracies.
What is a key benefit of using a bottom-up estimation approach?
Answer: It provides highly detailed and accurate cost projections
Bottom-up estimation provides highly accurate cost projections by breaking down the project into detailed components and estimating each individually.