CBC Financial Management & Estimating Flashcards
6 cards from real CBC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CBC Financial Management & Estimating flashcards as text
Which estimating method applies unit costs to each component of work based on material and labor quantities?
Answer: Unit price estimating
Unit price estimating calculates costs by multiplying measured quantities of each work item by a predetermined cost per unit.
What does the term 'contingency' refer to in a construction budget?
Answer: Reserved funds for unforeseen costs
A contingency is a budgeted reserve set aside to cover unexpected or uncertain costs that may arise during construction.
A contractor's overhead includes which of the following?
Answer: Office rent and administrative salaries
Overhead encompasses indirect business costs such as office rent, utilities, and administrative salaries that are not tied to a single project.
What is a Schedule of Values (SOV) used for on a construction project?
Answer: Breaking the contract sum into line items for progress billing
A Schedule of Values allocates the total contract amount across work items so that progress payments can be calculated based on percentage of completion.
Which type of bond guarantees that a contractor will complete a project according to the contract terms?
Answer: Performance bond
A performance bond protects the owner by ensuring the contractor will fulfill all contractual obligations or the surety will complete the project.
Cash flow management in construction primarily involves:
Answer: Timing receipts and disbursements to maintain sufficient liquidity
Effective cash flow management ensures that money coming in from progress payments aligns with money going out for labor, materials, and overhead.