Cost Estimation Flashcards
6 cards from real CAC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Cost Estimation flashcards as text
What is the primary purpose of cost estimation in construction?
Answer: To predict expenses and plan budgets accurately
Cost estimation helps predict project expenses, allowing for accurate budgeting and financial planning.
Which type of cost estimate provides a rough budget early in the project planning phase?
Answer: Preliminary estimate
Preliminary estimates provide an initial budget assessment before detailed planning occurs.
Which cost component accounts for expenses related to labor and materials?
Answer: Direct costs
Direct costs include labor, materials, and equipment, which are directly associated with construction work.
What is the primary purpose of a contingency allowance in a construction estimate?
Answer: To cover unexpected expenses
A contingency allowance accounts for unforeseen costs or changes during the construction process.
Which factor can significantly impact cost estimation accuracy?
Answer: Material price fluctuations
Market fluctuations in material costs can affect overall project expenses, making accurate estimation challenging.
Which estimating method uses past project data to predict costs for a new project?
Answer: Parametric estimating
Parametric estimating relies on historical data and mathematical models to predict costs based on similar projects.