CCT Cost Control & Monitoring 3

Question 1

In Estimate at Completion (EAC) calculations, which formula assumes future work will be performed at the current CPI?

Accepted Answer

EAC = BAC / CPI

Answer

EAC = BAC / CPI assumes the cost efficiency experienced so far will continue for the remainder of the project.

Question 2

A project's To-Complete Performance Index (TCPI) based on BAC is 1.25. This means the project team must:

Accepted Answer

Complete $1.25 of work for every $1.00 spent going forward

Answer

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.

Question 3

Which cost monitoring document provides a time-phased allocation of the project budget and serves as the baseline for performance measurement?

Accepted Answer

Performance measurement baseline (PMB)

Answer

The Performance Measurement Baseline is the time-phased budget against which project performance is measured and reported.

Question 4

Cost control 'threshold' in project monitoring typically refers to:

Accepted Answer

The maximum percentage variance allowed before corrective action is triggered

Answer

A cost threshold defines the acceptable variance limit (e.g., ±10% of budget) beyond which formal corrective action is required.

Question 5

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:

Accepted Answer

Verify billing records against contract terms and documented deliverables

Answer

Before taking action, the project manager should verify facts by comparing billing records against the contract and accepted deliverables.

(CCT) Certified Cost Technician Practice Test

(CCT) Certified Cost Technician Practice Test

CCT Cost Control & Monitoring 3