CCC Cost Estimation & Budgeting

Question 1

Which cost estimation method relies on historical data and expert judgment?

Accepted Answer

Analogous estimation

Answer

Analogous estimation uses historical project data and expert experience to estimate costs, making it a quick but less precise method.

Question 2

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

Accepted Answer

To cover unforeseen risks and uncertainties

Answer

A contingency reserve is included in the budget to account for unforeseen risks and uncertainties, ensuring financial preparedness for unexpected costs.

Question 3

Which cost estimation technique uses mathematical models and statistical data?

Accepted Answer

Parametric estimation

Answer

Parametric estimation applies statistical relationships between cost variables to predict costs based on unit measurements, making it efficient and data-driven.

Question 4

What is the purpose of Earned Value Management (EVM) in cost control?

Accepted Answer

To track project cost efficiency and schedule performance

Answer

Earned Value Management (EVM) helps assess project performance by comparing planned, actual, and earned costs to track cost efficiency and schedule performance.

Question 5

Which factor is critical in determining an accurate project budget?

Accepted Answer

Scope definition

Answer

Scope definition is crucial to establishing an accurate budget, as unclear or changing project scopes can lead to cost overruns and budget inaccuracies.

CCC Practice Test

CCC Practice Test

CCC Cost Estimation & Budgeting