CAC Cost Estimation

Question 1

What is the primary purpose of cost estimation in construction?

Accepted Answer

To predict expenses and plan budgets accurately

Answer

To increase overall project costs

Answer

To eliminate project risk entirely

Answer

To delay construction timelines

Question 2

Which type of cost estimate provides a rough budget early in the project planning phase?

Accepted Answer

Preliminary estimate

Answer

Detailed estimate

Answer

Definitive estimate

Answer

Bid estimate

Question 3

Which cost component accounts for expenses related to labor and materials?

Accepted Answer

Direct costs

Answer

Indirect costs

Answer

Overhead costs

Answer

Contingency costs

Question 4

What is the primary purpose of a contingency allowance in a construction estimate?

Accepted Answer

To cover unexpected expenses

Answer

To increase profit margins

Answer

To decrease labor costs

Answer

To extend project deadlines

Question 5

Which factor can significantly impact cost estimation accuracy?

Accepted Answer

Material price fluctuations

Answer

Weather conditions

Answer

Project location

Answer

Construction schedule

Question 6

Which estimating method uses past project data to predict costs for a new project?

Accepted Answer

Parametric estimating

Answer

Bottom-up estimating

Answer

Analogous estimating

Answer

Conceptual estimating