Project Budget & Cost Control Flashcards
6 cards from real CPC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Project Budget & Cost Control flashcards as text
What is the cost baseline in project management?
Answer: The approved time-phased budget used to measure and monitor project cost performance
The cost baseline is the approved, time-phased budget that serves as the reference point for earned value analysis.
Analogous estimating uses:
Answer: Historical data from similar past projects to estimate cost or duration
Analogous estimating is a top-down technique that leverages actual results from similar previous projects.
Which cost estimate type has the widest accuracy range and is produced earliest in the project?
Answer: Rough order of magnitude (ROM)
A ROM estimate is produced with minimal information and typically carries an accuracy range of -25% to +75%.
Management reserve differs from contingency reserve in that:
Answer: Management reserve covers unknown unknowns, while contingency reserve covers known risks
Contingency reserve addresses identified risks; management reserve handles unforeseen issues that fall outside the risk register.
A project has spent $50,000 but was supposed to spend $40,000 by this point. This means the project is:
Answer: Over budget (cost overrun)
Spending more than planned at a given point signals a cost overrun that must be investigated and addressed.
Parametric estimating calculates cost or duration by:
Answer: Multiplying a unit cost or rate by a measurable quantity
Parametric estimating uses a statistical relationship between project parameters (e.g., cost per square foot) to produce estimates.