CDT Cost Estimation & Budgeting 2 — Questions and Answers
Question 1: Which estimating method divides a project into its smallest measurable components and prices each individually?
- Parametric estimating
- Unit price estimating
- Assembly estimating
- Detailed quantity takeoff (Correct answer)
Correct answer: Detailed quantity takeoff
A detailed quantity takeoff breaks the project into individual components, measures each, and applies unit costs for the most accurate estimate.
Question 2: When preparing a cost estimate for a structural steel project, what is the primary purpose of including a contingency allowance?
- To increase profit margin
- To account for unforeseen conditions and scope changes (Correct answer)
- To cover design errors
- To offset labor cost inflation
Correct answer: To account for unforeseen conditions and scope changes
Contingency allowances are included to cover unforeseen conditions, minor scope changes, and uncertainties that are difficult to price at estimate time.
Question 3: A drafter is preparing a bill of materials for a mechanical assembly. Which document most directly supports accurate cost estimation of fasteners and hardware?
- Assembly drawing
- Parts list / BOM (Correct answer)
- Schematic diagram
- Isometric view
Correct answer: Parts list / BOM
The Bill of Materials (BOM) lists every component, quantity, and specification, enabling precise procurement cost estimation for fasteners and hardware.
Question 4: In construction cost estimating, what does the term 'allowance' typically represent?
- A fixed overhead charge
- A budgeted sum for items not fully defined at estimate time (Correct answer)
- The contractor's fee
- A deduction for value engineering
Correct answer: A budgeted sum for items not fully defined at estimate time
An allowance is a budgeted sum set aside for items whose full scope or specifications are not yet defined, such as owner-selected fixtures.
Question 5: Which type of cost escalates proportionally as more units of a product are manufactured?
- Fixed cost
- Sunk cost
- Variable cost (Correct answer)
- Overhead cost
Correct answer: Variable cost
Variable costs, such as raw materials and direct labor, increase in direct proportion to the number of units produced.
Question 6: A drafting technician needs to estimate the sheet metal required for HVAC ductwork. Which measurement is most critical for an accurate material takeoff?
- Duct centerline length only
- Inside duct dimensions
- Surface area of duct surfaces (Correct answer)
- Duct installation labor hours
Correct answer: Surface area of duct surfaces
Sheet metal quantity for ductwork is calculated from the surface area of all duct faces, which determines how many square feet of material are needed.
Question 7: What is the effect of 'economy of scale' on per-unit manufacturing costs as production volume increases?
- Per-unit cost increases
- Per-unit cost remains constant
- Per-unit cost decreases (Correct answer)
- Per-unit cost becomes unpredictable
Correct answer: Per-unit cost decreases
Economy of scale means fixed costs are spread across more units, reducing the per-unit cost as production volume increases.
CDT Cost Estimation & Budgeting 2
Which estimating method divides a project into its smallest measurable components and prices each individually?