CAM Cost Control and Budgeting

Question 1

What is the primary goal of cost control in project management?

Accepted Answer

To keep project costs within budget

Answer

To eliminate the need for budgeting

Answer

To increase project expenditures

Answer

To focus only on revenue generation

Question 2

Which budgeting method allocates funds based on prior period spending?

Accepted Answer

Historical budgeting

Answer

Zero-based budgeting

Answer

Activity-based budgeting

Answer

Rolling budgeting

Question 3

Which tool is commonly used to track project expenses against the budget?

Accepted Answer

Earned value management (EVM)

Answer

Risk matrix

Answer

Stakeholder register

Answer

Gantt chart

Question 4

Which cost estimation technique relies on expert judgment and past project data?

Accepted Answer

Analogous estimating

Answer

Parametric estimating

Answer

Bottom-up estimating

Answer

Monte Carlo simulation

Question 5

What is the primary purpose of a contingency reserve in budgeting?

Accepted Answer

To cover unforeseen project costs

Answer

To increase project profits

Answer

To eliminate budget constraints

Answer

To reallocate funds randomly

Question 6

Which metric measures the cost efficiency of a project?

Accepted Answer

Cost performance index (CPI)

Answer

Schedule variance

Answer

Return on investment (ROI)

Answer

Risk probability index