Cost Control & Monitoring Flashcards
7 cards from real CCT practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Cost Control & Monitoring flashcards as text
In Estimate at Completion (EAC) calculations, which formula assumes future work will be performed at the current CPI?
Answer: EAC = BAC / CPI
EAC = BAC / CPI assumes the cost efficiency experienced so far will continue for the remainder of the project.
A project's To-Complete Performance Index (TCPI) based on BAC is 1.25. This means the project team must:
Answer: Complete $1.25 of work for every $1.00 spent going forward
TCPI = (BAC − EV) / (BAC − AC); a value of 1.25 means the team must achieve $1.25 of work value for every remaining dollar spent.
Which cost monitoring document provides a time-phased allocation of the project budget and serves as the baseline for performance measurement?
Answer: Performance measurement baseline (PMB)
The Performance Measurement Baseline is the time-phased budget against which project performance is measured and reported.
Cost control 'threshold' in project monitoring typically refers to:
Answer: The maximum percentage variance allowed before corrective action is triggered
A cost threshold defines the acceptable variance limit (e.g., ±10% of budget) beyond which formal corrective action is required.
During a cost review, the project team identifies that a subcontractor is consistently billing for more hours than agreed. The FIRST corrective action should be:
Answer: Verify billing records against contract terms and documented deliverables
Before taking action, the project manager should verify facts by comparing billing records against the contract and accepted deliverables.
Which type of cost variance analysis compares the cost of completed work to the cost that was budgeted for that same work?
Answer: Cost variance (CV) in earned value management
CV = EV − AC, which compares the budgeted cost of work performed to the actual cost of that work.
A project using a 'rolling wave planning' approach to cost control will likely have:
Answer: Detailed near-term estimates with high-level estimates for distant future work
Rolling wave planning provides detailed estimates for near-term work and progressively elaborates estimates for future work as more information becomes available.