CCT Cost Control & Monitoring 4

Question 1

An 'S-curve' in cost management represents:

Accepted Answer

Cumulative planned or actual costs plotted over time

Answer

An S-curve plots cumulative costs (or effort) over time, showing a slow start, rapid mid-project buildup, and tapering at project end.

Question 2

Which cost control action is most appropriate when CPI = 0.75 and the project is 60% complete?

Accepted Answer

Conduct a formal re-baseline after a root cause analysis and corrective action plan

Answer

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.

Question 3

In cost monitoring, 'cost loading' of a schedule refers to:

Accepted Answer

Assigning budget amounts to individual schedule activities

Answer

Cost loading assigns planned cost values to schedule activities, enabling time-phased budgets and earned value tracking.

Question 4

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:

Accepted Answer

Document the impact, quantify the additional cost, and formally negotiate budget adjustment

Answer

The correct response is to document and quantify the cost impact and use the formal change control process to negotiate appropriate budget authorization.

Question 5

What is the primary purpose of a 'cost account' in a project cost control system?

Accepted Answer

A control point that integrates scope, schedule, and budget at a specific WBS level

Answer

A cost account is the management control point where scope, schedule, and budget are integrated, enabling earned value measurement.

(CCT) Certified Cost Technician Practice Test

(CCT) Certified Cost Technician Practice Test

CCT Cost Control & Monitoring 4