CCM Cost and Time Management 2

Question 1

A construction project has a BAC of $500,000, EV of $200,000, and AC of $250,000. What is the Cost Performance Index (CPI)?

Accepted Answer

0.80

Answer

CPI = EV / AC = $200,000 / $250,000 = 0.80, indicating the project is over budget.

Question 2

Which scheduling technique uses probability distributions to model activity duration uncertainty?

Accepted Answer

PERT

Answer

PERT uses optimistic, most likely, and pessimistic duration estimates with weighted averages to model uncertainty.

Question 3

The Estimate at Completion (EAC) formula assuming future work will proceed at the budgeted rate is:

Accepted Answer

AC + (BAC - EV)

Answer

EAC = AC + (BAC - EV) assumes remaining work will be completed at the originally planned cost rate.

Question 4

A contractor uses fast-tracking on a project. What is the primary risk associated with this technique?

Accepted Answer

Increased rework due to overlapping activities

Answer

Fast-tracking overlaps activities that were planned sequentially, increasing the risk of rework if earlier work must be revised.

Question 5

Which cost estimating technique uses a statistical relationship between historical data and project variables?

Accepted Answer

Parametric estimating

Answer

Parametric estimating uses statistical relationships such as cost per square foot or cost per unit based on historical data.

(CCM) Certified Construction Manager Practice Test