CST Cost-Loaded Schedule Integration 2 — Questions and Answers
Question 1: In a cost-loaded schedule, what does the Performance Measurement Baseline (PMB) represent?
- The sum of all contract change orders approved to date
- The time-phased budget plan against which project performance is measured (Correct answer)
- The actual costs incurred through the data date
- The estimated cost at completion based on current performance
Correct answer: The time-phased budget plan against which project performance is measured
The PMB is the time-phased budget baseline that integrates scope, schedule, and cost, serving as the reference for measuring earned value performance.
Question 2: When a cost-loaded schedule shows a Schedule Variance (SV) of -$50,000, what does this indicate?
- The project has spent $50,000 less than planned
- The project is $50,000 behind schedule in cost terms (Correct answer)
- The project will finish $50,000 over budget
- The project has earned $50,000 more work than planned
Correct answer: The project is $50,000 behind schedule in cost terms
A negative SV (EV minus PV) means the project has accomplished less work value than was planned at that point in time.
Question 3: Which resource type is most commonly used as the basis for cost-loading a construction schedule?
- Equipment utilization rates
- Labor hours converted to dollars (Correct answer)
- Material quantities only
- Subcontractor headcount
Correct answer: Labor hours converted to dollars
Labor hours multiplied by loaded labor rates are the most common basis for cost-loading because labor drives the majority of direct project costs.
Question 4: A project has a BAC of $1,000,000 and a CPI of 0.80. What is the Estimate at Completion (EAC) using the CPI-based formula?
- $800,000
- $1,200,000
- $1,250,000 (Correct answer)
- $1,000,000
Correct answer: $1,250,000
EAC = BAC ÷ CPI = $1,000,000 ÷ 0.80 = $1,250,000, projecting overrun if current cost efficiency continues.
Question 5: In cost-loaded scheduling, 'front-loading' of costs refers to what practice?
- Assigning higher-cost resources to critical path activities
- Inflating early activity budgets to improve early cash flow (Correct answer)
- Placing mobilization and material costs in the first reporting period
- Scheduling all overtime in the first month of a project
Correct answer: Inflating early activity budgets to improve early cash flow
Front-loading intentionally shifts budget weight to early activities, often to improve contractor cash flow at the owner's expense.
Question 6: What is the primary purpose of reconciling a cost-loaded schedule with the project's Control Account Plan (CAP)?
- To ensure the schedule matches the master project schedule
- To verify that budgets assigned to activities roll up correctly to control accounts (Correct answer)
- To confirm that the schedule logic has no loops
- To align resource histograms with procurement lead times
Correct answer: To verify that budgets assigned to activities roll up correctly to control accounts
Reconciliation confirms that activity-level budgets aggregate correctly to control accounts, maintaining traceability from work packages to the PMB.
Question 7: On a cost-loaded schedule, what does a flat S-curve indicate about project cash flow?
- Spending is consistent and evenly distributed throughout the project
- Early and late spending are both low, with peak spending in the middle period (Correct answer)
- The project is behind schedule
- Resources are over-allocated in all periods
Correct answer: Early and late spending are both low, with peak spending in the middle period
A typical S-curve is flat at the start (mobilization) and end (closeout), with the steepest slope in the middle when construction activity peaks.
CST Cost-Loaded Schedule Integration 2
In a cost-loaded schedule, what does the Performance Measurement Baseline (PMB) represent?