CPM Budget & Cost Management Flashcards
6 cards from real CPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CPM Budget & Cost Management flashcards as text
Which cost estimation technique calculates cost per unit and multiplies by the number of units?
Answer: Parametric estimating
Parametric estimating uses statistical relationships between historical data and variables (e.g., cost per square foot) to calculate cost estimates with greater accuracy.
In EVM, the Estimate to Complete (ETC) represents:
Answer: The expected cost to finish all remaining project work
ETC is the expected cost of completing the remaining project work, calculated as EAC minus AC when using the current CPI to forecast future performance.
What does a negative Cost Variance (CV) indicate in Earned Value Management?
Answer: The project is over budget
A negative CV (EV minus AC) means more money has been spent than the value of work accomplished, signaling an over-budget condition.
Life cycle costing in project management refers to:
Answer: Considering the total cost of ownership including operations and maintenance
Life cycle costing evaluates the total cost of a deliverable over its entire useful life, including acquisition, operations, maintenance, and disposal costs.
Which CPM cost control tool shows cumulative planned versus actual cost over time on a graph?
Answer: S-curve
An S-curve plots cumulative planned value and actual cost over time, forming an S-shaped line that visually highlights cost variance trends.
What is the formula for Estimate at Completion (EAC) when assuming future work will be performed at the budgeted rate?
Answer: AC + (BAC - EV)
EAC = AC + (BAC - EV) assumes remaining work will be completed at the originally planned rate, adding actual costs to date to the remaining budget.