Cost Estimation & Budgeting Flashcards
7 cards from real CDT 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 Estimation & Budgeting flashcards as text
Which cost category includes expenses such as facility rent, insurance, and management salaries that do not vary with production output?
Answer: Fixed overhead costs
Fixed overhead costs remain constant regardless of production volume and include expenses like rent, insurance, and management salaries.
On a CDT exam project, a quantity takeoff shows 1,450 LF of 2×6 framing lumber. If the unit cost is $0.85/LF, what is the estimated material cost?
Answer: $1,232.50
1,450 LF × $0.85/LF = $1,232.50 is the total estimated material cost for the framing lumber.
Which document formally establishes the approved total project budget and serves as the baseline for cost control?
Answer: Cost baseline
The cost baseline is the approved, time-phased project budget that serves as the reference point for measuring and controlling cost performance.
When converting a schematic design estimate to a design development estimate, accuracy typically improves because:
Answer: More project details and specifications are defined
As design progresses and more details are defined, estimators can replace assumptions with actual quantities and specifications, improving accuracy.
A drafter is tasked with creating a cost estimate for a custom weldment. Which drawing type provides the most complete information for material cost takeoff?
Answer: Detail drawing with weld symbols and material callouts
A detail drawing with weld symbols and material callouts specifies exact dimensions, material grades, and weld types needed for accurate fabrication cost estimation.
What is 'value engineering' in the context of construction cost management?
Answer: A systematic review to achieve required functions at the lowest cost
Value engineering is a systematic review process that identifies ways to achieve the required project functions while reducing unnecessary costs.
In manufacturing cost estimation, 'burden rate' or 'overhead rate' is typically expressed as:
Answer: A percentage of direct labor costs
The burden rate is most commonly expressed as a percentage of direct labor costs and is applied to allocate indirect manufacturing overhead to products.