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
An 'S-curve' in cost management represents:
Answer: Cumulative planned or actual costs plotted over time
An S-curve plots cumulative costs (or effort) over time, showing a slow start, rapid mid-project buildup, and tapering at project end.
Which cost control action is most appropriate when CPI = 0.75 and the project is 60% complete?
Answer: Conduct a formal re-baseline after a root cause analysis and corrective action plan
A CPI of 0.75 at 60% completion is a serious overrun; a formal re-baseline with root cause analysis and a corrective plan is the appropriate structured response.
In cost monitoring, 'cost loading' of a schedule refers to:
Answer: Assigning budget amounts to individual schedule activities
Cost loading assigns planned cost values to schedule activities, enabling time-phased budgets and earned value tracking.
A project manager receives a change order that increases scope but the client insists the budget will not change. The BEST cost control response is to:
Answer: Document the impact, quantify the additional cost, and formally negotiate budget adjustment
The correct response is to document and quantify the cost impact and use the formal change control process to negotiate appropriate budget authorization.
What is the primary purpose of a 'cost account' in a project cost control system?
Answer: A control point that integrates scope, schedule, and budget at a specific WBS level
A cost account is the management control point where scope, schedule, and budget are integrated, enabling earned value measurement.
When a project experiences 'cost creep,' the most effective early detection method is:
Answer: Comparing cumulative actual costs against the time-phased budget at each reporting period
Regular comparison of cumulative actuals against the time-phased PMB at each reporting period catches cost creep before it becomes unmanageable.
Which method of earned value measurement is most suitable for a long-duration engineering design task with no clear interim milestones?
Answer: Level of effort (LOE)
Level of effort (LOE) is used for support or time-based activities with no measurable output, where earned value equals the planned value for the period.