CCC Cost Estimation & Budgeting

Question 1

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

Accepted Answer

To allocate financial resources accurately

Answer

To determine project deadlines

Answer

To increase project expenses

Answer

To eliminate the need for financial reporting

Question 2

Which cost estimation technique is based on historical data?

Accepted Answer

Analogous estimating

Answer

Bottom-up estimating

Answer

Parametric estimating

Answer

Three-point estimating

Question 3

What is the purpose of a contingency reserve in a project budget?

Accepted Answer

To cover unforeseen project expenses

Answer

To increase project profitability

Answer

To eliminate the need for cost tracking

Answer

To replace the need for cost estimation

Question 4

Which budgeting method assigns costs based on specific project activities?

Accepted Answer

Activity-based budgeting (ABB)

Answer

Incremental budgeting

Answer

Zero-based budgeting

Answer

Cash flow budgeting

Question 5

Which factor can significantly impact project cost estimation?

Accepted Answer

Fluctuating material costs

Answer

Project team size

Answer

Employee attendance

Answer

Weather conditions

Question 6

What is a key advantage of using parametric estimating?

Accepted Answer

It increases accuracy using statistical data

Answer

It eliminates the need for cost tracking

Answer

It relies solely on expert judgment

Answer

It ignores historical cost data