CCT CCT Value Engineering & Cost Optimization 2

Question 1

What is the 'cost-worth' relationship in value engineering?

Accepted Answer

The comparison of actual cost to the minimum cost necessary to reliably perform a function

Answer

In VE, cost-worth analysis compares what something costs versus the least it could cost to perform the same function, identifying potential savings.

Question 2

Which of the following is a key output of a value engineering workshop?

Accepted Answer

A list of alternatives with estimated cost savings and functional equivalency assessments

Answer

A VE workshop produces documented alternatives that maintain or improve function at lower cost, along with quantified estimates of potential savings for owner review.

Question 3

In cost optimization, what does 'value analysis' applied to materials typically involve?

Accepted Answer

Substituting specified materials with functionally equivalent but lower-cost alternatives

Answer

Value analysis of materials identifies substitutions that meet functional and performance requirements at a lower cost, such as an alternative structural system or finish material.

Question 4

What is the purpose of a 'cost model' in value engineering?

Accepted Answer

To display the distribution of costs by system or element to identify high-cost areas for VE focus

Answer

A cost model breaks the project into systems (structural, mechanical, electrical, etc.) and shows each system's cost share, directing VE effort toward the highest-cost elements.

Question 5

Which concept describes reducing the total cost of a project by compressing the schedule to avoid prolonged overhead and carrying costs?

Accepted Answer

Cost-duration tradeoff (crashing)

Answer

Schedule crashing trades increased direct costs (overtime, added resources) for reduced duration, which can lower total project cost when indirect/overhead savings exceed the acceleration premium.

(CCT) Certified Cost Technician Practice Test

(CCT) Certified Cost Technician Practice Test

CCT CCT Value Engineering & Cost Optimization 2