CCC Cost Control & Performance Measurement

Question 1

What is the main purpose of cost control in project management?

Accepted Answer

To keep project expenses within budget

Answer

Cost control ensures that project expenses remain within budget by tracking costs, identifying variances, and implementing corrective actions.

Question 2

Which performance measurement technique is commonly used in cost control?

Accepted Answer

Earned Value Management (EVM)

Answer

Earned Value Management (EVM) assesses project performance by comparing planned versus actual costs and schedule progress.

Question 3

What does a Cost Performance Index (CPI) value greater than 1 indicate?

Accepted Answer

The project is under budget

Answer

A CPI greater than 1 means the project is running under budget, as the earned value exceeds actual costs.

Question 4

Which tool is used to forecast future project costs based on historical data?

Accepted Answer

Trend Analysis

Answer

Trend analysis evaluates historical cost data to predict future project costs and identify potential budget issues.

Question 5

Which financial document is used to compare planned and actual project costs?

Accepted Answer

Variance Report

Answer

A variance report tracks cost discrepancies between planned and actual spending, helping to identify financial trends and corrective actions.

CCC Practice Test