CCT Cost Control & Monitoring 5

Question 1

A project team uses a 'control account plan' (CAP). Which of the following is NOT typically included in a CAP?

Accepted Answer

Detailed risk mitigation strategies for each risk

Answer

A CAP documents scope, schedule, and budget for a control account; detailed risk mitigation strategies belong in the risk register, not the CAP.

Question 2

Forecast accuracy in cost monitoring is BEST improved by:

Accepted Answer

Regularly updating ETC based on actual progress and remaining work assessment

Answer

Continuously re-estimating the cost to complete (ETC) based on current knowledge of actual progress and remaining work improves forecast reliability.

Question 3

Which cost control document formally authorizes the project team to spend funds on a specific work package?

Accepted Answer

Work authorization document (WAD)

Answer

A Work Authorization Document formally releases budget and authorizes work to begin on a specific work package within the control account.

Question 4

On a cost performance report, an 'at-completion variance' that worsens each period despite corrective actions most likely indicates:

Accepted Answer

The root cause has not been addressed or the corrective plan is insufficient

Answer

A persistently worsening at-completion variance despite corrective actions signals that the underlying root cause remains unresolved or the corrective plan is inadequate.

Question 5

In integrated cost/schedule control, a project with CPI = 1.10 and SPI = 0.85 is best described as:

Accepted Answer

Under budget but behind schedule

Answer

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.

(CCT) Certified Cost Technician Practice Test

(CCT) Certified Cost Technician Practice Test

CCT Cost Control & Monitoring 5