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
A project team uses a 'control account plan' (CAP). Which of the following is NOT typically included in a CAP?
Answer: Detailed risk mitigation strategies for each risk
A CAP documents scope, schedule, and budget for a control account; detailed risk mitigation strategies belong in the risk register, not the CAP.
Forecast accuracy in cost monitoring is BEST improved by:
Answer: Regularly updating ETC based on actual progress and remaining work assessment
Continuously re-estimating the cost to complete (ETC) based on current knowledge of actual progress and remaining work improves forecast reliability.
Which cost control document formally authorizes the project team to spend funds on a specific work package?
Answer: Work authorization document (WAD)
A Work Authorization Document formally releases budget and authorizes work to begin on a specific work package within the control account.
On a cost performance report, an 'at-completion variance' that worsens each period despite corrective actions most likely indicates:
Answer: The root cause has not been addressed or the corrective plan is insufficient
A persistently worsening at-completion variance despite corrective actions signals that the underlying root cause remains unresolved or the corrective plan is inadequate.
In integrated cost/schedule control, a project with CPI = 1.10 and SPI = 0.85 is best described as:
Answer: Under budget but behind schedule
CPI > 1.0 means under budget (cost efficient), while SPI < 1.0 means behind schedule, giving a combined condition of under budget but behind schedule.
A cost engineer performing a 'variance analysis' identifies a significant unfavorable cost variance. The NEXT step is to:
Answer: Determine the root cause and recommend corrective or preventive action
After identifying a significant variance, the cost engineer must determine its root cause before recommending appropriate corrective or preventive measures.
Which of the following is a key output of the 'Control Costs' process according to standard project cost management practices?
Answer: Cost forecasts (updated EAC)
Updated cost forecasts, including revised EAC and ETC, are a primary output of the Control Costs process as the project progresses.